Lei Feng is an employment lawyer at Hebei Jiacheng Law Firm in Baoding, representing both foreign-invested enterprises and employees in labor contract disputes, wrongful termination claims, and severance negotiations. With extensive experience in the Labor Contract Law framework, Mr. Feng provides practical guidance on termination procedures that minimize litigation risk while respecting employee statutory protections.

The Labor Contract Law of the People's Republic of China, effective January 1, 2008, and amended in 2012, establishes the legal framework for employment termination in China. Article 39 permits unilateral termination without severance payment where the employee is proven to have committed serious disciplinary violations, dereliction of duty causing substantial damage, or criminal liability. However, employers bear the burden of proof under Article 6 of the Interpretation of the Supreme People's Court on Several Issues concerning the Application of Law in Labor Dispute Cases, requiring documented evidence of violations and proper disciplinary procedures.

Wrongful termination under Article 87 of the Labor Contract Law triggers statutory penalties of twice the economic compensation amount. Economic compensation under Article 47 is calculated at one month's salary for each full year of service, with a cap of 12 years for employees earning more than three times the local average monthly wage. For a Baoding employee earning RMB 8,000 per month with eight years of service, wrongful termination compensation would amount to RMB 128,000 (RMB 8,000 multiplied by 8 multiplied by 2).

Employers undertaking workforce reductions must follow the collective consultation procedure under Article 41 of the Labor Contract Law. Reduction plans involving 20 or more employees, or fewer than 20 employees but comprising more than 10 percent of the workforce, require 30 days' advance notice to the labor union or all employees, consultation on the reduction plan, and reporting to the local human resources and social security bureau. Failure to comply with procedural requirements renders the reduction illegal, exposing the employer to wrongful termination liability.

Fixed-term contract expiration presents particular risks for foreign-invested enterprises. Under Article 14 of the Labor Contract Law, after two consecutive fixed-term contracts or ten years of continuous service with the same employer, the employee has the right to demand an open-ended contract upon renewal. Employers who refuse to renew or who non-renew without statutory cause may face claims for illegal termination. Mr. Feng advises clients on strategic contract structuring and performance evaluation documentation to establish lawful non-renewal grounds.

Probation period terminations require special attention. Article 21 provides that an employer may terminate a probationary employee only if the employee fails to meet recruitment conditions, which must be objectively documented and communicated at the time of hire. Subjective dissatisfaction with performance is insufficient grounds. Chinese courts in Baoding District consistently require objective assessment criteria and documented evaluation results to sustain probationary terminations.

Special statutory protections under Article 42 prohibit termination of employees during medical treatment periods for occupational or non-occupational injuries, female employees during pregnancy, maternity leave, and nursing periods, and employees engaged in hazardous operations without completion of occupational health examinations. Termination of a pregnant employee is per se illegal under Baoding Intermediate People's Court guidance, resulting in mandatory reinstatement or double compensation at the employee's election.

Post-termination compliance obligations include issuance of the certificate of resignation under Article 50 within 15 days of termination, transfer of social insurance and personnel file records, and payment of all outstanding wages, severance, and accrued annual leave compensation within the statutory timeframe. Failure to issue the certificate or transfer social insurance records exposes the employer to administrative penalties and potential compensation liability for any losses caused to the departing employee.