Is termination at-will allowed under the PRC law?
Employees can terminate their employment on 30 days notice. This is reduced to three days notice during the probationary period. However, PRC law does not grant the same right to employers. Employers can only terminate an employee’s employment on specified grounds set out in the law (e.g., mutual termination, summary dismissal, termination with notice and termination by reason of redundancy). Is termination with notice (or payment in lieu) allowed under the PRC law? An employer can only terminate a contract with 30 days notice (or one month’s salary in lieu of such notice) in one of the following circumstances: • On the expiry of a medical treatment period for an illness or non-work related injury, and the employee remains incapable of performing the original duties or the duties of another available job. • The employee is not competent to perform the job and remains so after training or being moved to another job. • The employee’s labour contract can no longer be performed due to a ma
