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ينهي موظفات في الصين: بعض إعتبارات عمليّة

سبتمبر - أيلول [23رد], 2008 بالصين عمل نجاح قصص

بغريغوري [سي]

الإصدارات أنّ ينبغي كنت خاطبت ب [إمبلورس] قبل وبعد موظفة انتهاء

تطلّبت واجبة إلى يزيد سوق ضغوط وأخرى عاملات [ستثأيشن-سبسفيك], [إمبلورس] غالبا أن ينهي موظفات في الصين. يحدّد هذا مادة بإيجاز بعض من الإصدارات أنّ ينبغي كنت خاطبت ب [إمبلورس] قبل وبعد موظفة انتهاء, بما في ذلك أوامر أن يعتبر أثناء ال يوظّف من موظفات مستقبلية, من المنظورة من المستخدمة.

1. أراضي لانتهاء:

[أ.] انتهاء فوقيّة

مستخدمة يمكن أنهيت موظفة دون متطلب لإشعار في الحالات تالي:

1. أثناء الامتحان فترة, إن الموظفة يكون حدّدت أن يكون غيرصالح للموقعة;
2. ينقض الموظفة مادّيّا القواعد ونظام تعديل يزوّد بالمستخدمة;
3. الموظفة في [درليكأيشن وف دوتي] جدّيّة, طعم أو فساد يسبّب إتلاف جوهريّة إلى المستخدمة فوائد;
4. قد أسّس الموظفة وظيفة علاقة مع آخر مستخدمة وأنّ علاقة يأثر الإنجاز من مهامه وهو يرفض أن بشكل مناسب عالجت الحالة بعد إشعار من المستخدمة;
5. كان الموظفة احتياليّة في يستنتج ال [لبوور كنتركت]; أو,
6. الموظفة [سوبجكت تو] تحقيق إجراميّة.

إعتبارات عمليّة:

1. بما أنّ انتهاء أثناء الفترة امتحانيّ يكون في الواقع في [ث ويلّ] من المستخدمة (تطلّبت موظفة أن يعطي حدّ أدنى من 3 [دي نوتيس] إلى المستخدمة), مستخدمة متعقّلة, في الوظيفة إتفاق, سينتقي الفترة طويلة امتحانيّ تحت القانون ([لبوور كنتركت] من أقلّ من 3 شهور: ما من امتحان فترة; 3 شهور [تو] 1 سنة: 1 شهر; 1 سنة [تو] 3 سنون: 2 months; and, 3 years or more or open-ended: 6 months);
2. Employers should clearly (in writing) define the rules and regulations of the workplace and what, both specifically and generally, constitutes a serious or material breach resulting in employer’s option to terminate (this can be accomplished through the distribution of employment handbooks or other more extensive policy guides); and,
3. Employers should carefully document any breach of the rules and regulations and serve written notice thereof.

b. 30-Day Notice

An employer must give 30 days’ prior written notice or payment in lieu thereof, if it terminates the labour contract under the following situations:

1. The employee is unable to perform his original duties or re-assigned duties, after returning from medical leave or non-work-related injury;
2. The employee is incompetent and remains incompetent after training or adjustment of position; or,
3. There has been a major change in ‘objective’ circumstances which were relied upon in the signing of the labour contract, and the employee and employer are unable to agree upon the modified terms of the labour contract.

Practical Considerations:

1. Document any and all performance, particularly when the employee fails to perform or underperforms; and,
2. Provide training to employees so as to ensure they are updated with the skills required of their position.

2. Severance Compensation:

Severance compensation is due in a number of situations, which are summarized below:

1. The employer terminates the employee under situations requiring 30 days’ prior written notice (as previously mentioned);
2. The employee is terminated due to restructuring or difficulties in business operations; 
3. Termination of the labour contract is proposed by employer and there is mutual agreement with regards to the termination thereof;
4. Expiration of a fixed-term labour contract (except where the employee refuses to renew the contract on terms equal to or better than that previously concluded);
5. Termination of the labour contract is due to the revocation of the employer’s business license; or, bankruptcy.

Employers must pay severance, in the amount of one month’s salary for each year of service, with half a month’s salary for each partial year.

If the employee earns more than 3 times the average monthly wage of the locality, then the compensation will be capped at 3 times the average monthly wage and up to a maximum of 12 months.

Practical Considerations:

1. Accurately calculate the severance compensation due and determine the ‘bottom line’ or the highest amount of severance compensation to be offered;
2. Prepare and sign an agreement in which the employee waives or releases his rights to further compensation upon agreement of the settlement amount offered;
3. Clearly define in the employment contract what documents and other properties of the employer are to be returned upon termination (notwithstanding any disagreements to the grounds of termination or severance compensation due); and,
4. Related to Point 1: be firm with regards to the calculated ‘bottom line’ (if the ex-employee refuses to agree to the amount of severance compensation offered, be prepared to refuse further discussion and negotiation).

3. Limitations Period:

The limitation period is 1 year after the employee knew or should have known that their rights have been violated. However, where the dispute has occured under an existing labour contract, the limitation period does not start until the labour contract has expired or has been terminated. 
 
Practical Considerations:

1. Maintain on file all records, documentation and other forms of evidence for a suggested minimum period of 5 years, so as to ensure the presence of proper records in the event of a dispute.

Evidently, there are a number of practical steps which can be taken in order to ensure that business interruptions are minimized on termination of employees. However, as with many things in China, things are often more complex than they seem, though the best advice is simply (not unlike how we would act in our home jurisdictions) use common sense and carefully document all agreements/contracts, emails, written/oral communications, work product, and any other potentially relevant information before, during and after the employment relationship.

Gregory M. Sy is a partner / foreign counsel with Grandall Legal Group. His practice includes general business advisory for SME’s in China, particularly in the areas of international corporate structuring and transactions. Representative clients include the Consulate of the United States of America in China (Shenyang), Embassy of Brazil, various publicly listed companies (NYSE, LSE, DAX, and BSE), along with numerous other SME’s operating in a wide range of industries. Mr. Sy obtained an LL.B. from the University of Victoria, and is admitted to the New York bar. Gregory publishes extensively on a variety of China legal issues for international and local publications, and has recently acted as chief editor for Martindale’s China Law Digest. You can contact Gregory at gregsy@grandall.com.cn or learn more about the firm at www.grandall-profile.com.

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2 Responses to “Terminating Employees in China: Some Practical Considerations”

  1. Eric Rhodes Says:

    A very good analysis, but I’m not sure I agree with the following practical consideration in all cases: “a prudent employer will, in the employment agreement, select the longest probationary period under the law”.

    Reason being that this works two ways - if you have a key employee, do you really want him or her to have the the right to skip out of the company with only 3 days notice to the employer? For more senior (or technically critical) positions, I would suggest consideration of a shorter probationary period.

    I’d also be curious to know how the PRC legal system would uphold a covenant not compete following termination in the probationary period.

  2. Thomas Says:

    This is the theory, the practice is somewhat detached from this idealistic approach.

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