MOHRSS Called For Public Comments On The Draft Rules Of Mass Dismissal

On 31 December 2014, the Ministry of Human Resources and Social Security of PRC ("MOHRSS") published the draft Rules on Mass Dismissal by Enterprises (the "Draft") for public comment. The Draft clarified the procedures and the penalties for failing to follow statutory procedures for mass dismissal.

General legal framework for mass dismissals

Chinese law generally restricts employer's rights to individual and mass dismissals. Only under statutory situations such as bankruptcy, production and operation difficulties, etc. and by following statutory procedures, an employer may unilaterally dismiss 20 or more employees, or 10% or more of the total headcount.

Measures to be taken before implementing mass dismissals