Termination due to financial difficulties

Under the second financial difficulties option, Article 41 of the PEL provides that employer may terminate employees without their consent. Under this option, employment may be terminated and, but for a one time severance compensation to be paid at the time of termination, the employer will no longer be required to…

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In light of the financial downturn, many foreign invested and domestic companies in China have been laying off their employees in masses. Though much of the focus has been in the manufacturing sector with stories of massive lay-offs and factory shutdown, very few industries will be completely immune to the downturn – forcing many employers to consider downsizing as an option to weather the storm. This, coupled with the…

Read the rest of  “Practice and Procedures for Termination of Employees Due to Financial Difficulties in China – Part 1” or post a comment >>

By Zennon Kapron

Prior to joining the WTO, the knowledge and experience of bank staff in Chinese banks was not an issue. Most domestic banks were very inwardly focused on their core domestic business and staff had the capabilities to match. However, as more and more SOEs were either listed or entered into partnerships with foreign multi-nationals, the requirements of domestic companies changed and expanded. No longer was it a case of simply domestic business – China had gone global. The issue then became staff experience and capabilities and as most Chinese banks didn’t have the experience in-house, they looked west.

Foreign talent primarily came from tie-ups between domestic and foreign banks. China’s entry into the WTO meant that foreign banks could start to take stakes in domestic Chinese banks and the lure of 1+ billion customers meant that nearly every foreign bank had some sort of China strategy. So with the domestic banks looking for experience and the foreign banks looking for a piece of the pie, it looked like a good match. Read the rest of “Foreign talent – Local Chinese banks” or post a comment

A new approach to management…

Although China’s economy is still growing, slowly but gradually the traces of the economic downturn are reaching the Chinese surface too: MNC’s are slowing down their investment, companies relying on export see their sales volumes go down and even the foreign invested companies that have been on the ground in China for a long time are feeling the heat.

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By Tim Burgess

How to profit from the downturn

The Chinese employment market has done a complete u-turn in just 6 months. In August 2008 Michael Pageʼs employer survey showed 78% of employers envisioned hiring new staff within 12 months, and 90% expected staff retention to be a major problem. But the boom is over. Due to global financial crisis and the slowing down of Chinaʼs enormous growth, companies in China are seeking to minimise exposure and risk in the face of uncertainty.

The long boom has ended

This is especially apparent in financial services and export industries in China. Read the rest of “9 steps for HR Managers in China” or post a comment