After a dismissal notice, it can be tempting to focus immediately on a compensation figure. A more useful first step is to preserve what the employer said and the records surrounding the decision. The legal route and possible remedy depend on the stated ground for termination, the contract, the employer's procedures, and the evidence available.
The Labor Contract Law allows termination only in circumstances set by law and provides different consequences for a lawful termination and an unlawful one. An employee may in some cases seek continued performance or statutory compensation, but the outcome is fact-specific. Do not sign a resignation, settlement, or acknowledgment before reading what rights and payments it covers.
Preserve the employer's decision and reason
Keep the termination notice, email, message, meeting invitation, and any document asking you to resign or accept a settlement. Save the date you received each item and identify who sent it. If a discussion was oral, make a dated note of what was said, who attended, and any follow-up. Do not alter the original messages or access systems after permission has ended.
The employer's stated reason matters. A dismissal based on alleged misconduct, performance, redundancy, inability to work, or a major change in circumstances may involve different statutory requirements. Ask for the specific factual basis and the workplace rule or contract term relied on. A broad label such as “not suitable” does not replace a review of the actual record.
Build a timeline and gather the employment file
Collect the contract and amendments, job description, employee handbook or rules, performance targets, appraisals, warnings, attendance records, pay slips, and social insurance records. Make a chronology of key events, including any performance discussions, requests for accommodation or leave, complaints, transfer proposals, and the termination. Keep records in original form where possible and note where the originals are stored.
For an alleged rule violation, preserve the rule version that applied at the time and any evidence that it was communicated to employees. For a performance-based reason, collect the targets, training or feedback, and comparable evaluation periods. For a restructuring explanation, preserve notices about the reorganization and records showing what happened to the role. Do not obtain evidence by entering systems or accounts you are not authorized to use.
Understand the remedy question
Article 48 of the Labor Contract Law provides that an employee may request continued performance after an unlawful termination; where the employee does not request it, or continued performance is impossible, statutory compensation may be available under Article 87. Which route is realistic depends on the facts and the employee's objective. Calculations can depend on service time, wages, and legal limits, so avoid relying on a generic online multiplier.
A settlement can resolve claims if it is valid and voluntary. Read the release language, payment date, tax and benefit treatment, and whether the document covers claims that have not yet been assessed. Keep a signed copy and proof of payment.
Practical next steps
- Write down the date, stated reason, and decision-maker.
- Preserve the full employment and dismissal record.
- Ask for a copy of any cited rule or investigation finding.
- Check the applicable labor dispute procedure and timing promptly.
- Get advice before signing a release or making a public accusation.
Sources: Labor Contract Law, Ministry of Human Resources and Social Security; Labor Contract Law, Shanghai Municipal Human Resources and Social Security Bureau.
