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ARTICLE · 03 JUNE 2025

Termination Of Employment In China

What types of employment termination are there?

ChinaEmployment and HR

1) What types of employment termination are there?

Termination by Mutual Agreement; Employee-Initiated Termination (Resignation); Employer-Initiated Termination for Cause or for Economic Layoffs; Contract Expiration; Retirement; Force Majeure; Criminal Punishment; Death or Loss of Capacity.

2) What are the legal grounds for termination initiated by the employer?

1. The employer may terminate for the employee's fault.

2. The employer may terminate with 30 days' notice (or pay in lieu) and severance if:

  • the employee is medically unfit for work after expiration of statutory medical leave.
  • the employee is incompetent and remains so after training or reassignment.
  • objective circumstances (e.g., restructuring, technological changes) render the contract unfulfillable, and no agreement is reached after negotiation.

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