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 major change in the objective circumstances which were relied upon when the contract was concluded, which renders the contract unperformable and the parties cannot reach an agreement to vary the contract after consultation. Economic compensation (of one month’s wages for each year of service) is payable in each of the above termination scenarios. Am I obliged to inform any third party (e.g. the union and/or the government) or obtain the consent of such third party for
