Find useful legal information for your business in China!

Category: Q&A on Chinese Labor Law Practice

China’s employment law is a law that confuses many foreign investors or foreign employees in China. They feel that the legal provisions of the employment law are inconsistent with court decisions, and a same situation often leads to an opposite result. In my two decades as a Chinese lawyer and part-time labor arbitrator, I have often felt this confusion.

  1. Pages:
  3. 1
  4. 2
  5. 3
  6. 4
  7. 5
  8. 6
  9. 7
  10. ...
  11. 17
154.What is non-competition and liability for breach of non-competition?
19 Jan
Posted in Chapter 6 Trade Secrets and Non-competition

154.What is non-competition and liability for breach of non-competition?

Answer: Articles 23 and 24 of the Employment Contract Law stipulate that non-competition is a measure taken by an employer to legally restrict employees who leave their jobs to work in competitive industries, so as to protect their trade secrets preventively. Non-competition specifically means that the employer may sign an agreement with senior managers, seniorRead more about 154.What is non-competition and liability for breach of non-competition?[…]

155.Is it legal for an employer to sign a non-competition agreement with an ordinary employee?
19 Jan
Posted in Chapter 6 Trade Secrets and Non-competition

155.Is it legal for an employer to sign a non-competition agreement with an ordinary employee?

Answer: This question is essentially whether the scope of employees permitted by law to undertake the obligation of non-competition includes ordinary employees. Article 24 of the Employment Contract Law stipulates that non-competition personnel are limited to senior managers, senior technicians, and other personnel with confidentiality obligations to the employer. Non-competition agreements signed by persons whoRead more about 155.Is it legal for an employer to sign a non-competition agreement with an ordinary employee?[…]

156.The non-competition contract between an employer and an employee includes on-the-job non-competition obligation. Is such an agreement valid?
19 Jan
Posted in Chapter 6 Trade Secrets and Non-competition

156.The non-competition contract between an employer and an employee includes on-the-job non-competition obligation. Is such an agreement valid?

Answer: The law does not specify during employment relationship whether employee have the obligation of non-competition, whether the obligation requires their employers to pay non-competition allowance, and whether agreed liquidated damages are binding. At present, the judicial decisions of courts around the country tend to hold that employees have the duty of loyalty to theirRead more about 156.The non-competition contract between an employer and an employee includes on-the-job non-competition obligation. Is such an agreement valid?[…]

157.The non-competition agreement signed by my employer and I does not stipulate a non-competition allowance. What can I do?
19 Jan
Posted in Chapter 6 Trade Secrets and Non-competition

157.The non-competition agreement signed by my employer and I does not stipulate a non-competition allowance. What can I do?

Answer: If a non-competition agreement does not stipulate non-competition allowance, the employee usually faces two problems: the first is that, if if the employee abides by the non-competition obligation, should the employer pay them the allowance, and if yes, at what standard? The second is whether the non-competition agreement is binding on the employee, thatRead more about 157.The non-competition agreement signed by my employer and I does not stipulate a non-competition allowance. What can I do?[…]

124.What types of employees are entitled to special non-termination protection in employers¡¯ layoffs?
18 Jan
Posted in Chapter 5 Employment Termination

124.What types of employees are entitled to special non-termination protection in employers¡¯ layoffs?

Answer: Employment law in China tends to protect the security of employment contract of special vulnerable employees. Article 42 of the Employment Contract Law stipulates that the following types of employees must not be terminated when the employer intends to terminate employment(s) due to health incompetence, ability incompetence, major changes in objective situation of employer,Read more about 124.What types of employees are entitled to special non-termination protection in employers¡¯ layoffs?[…]

125.My employee is sentenced to imprisonment for committing a crime. Can we terminate his employment?
18 Jan
Posted in Chapter 5 Employment Termination

125.My employee is sentenced to imprisonment for committing a crime. Can we terminate his employment?

Answer: The Employment Contract Law and the Labor Law both stipulate that employer can terminate the employment contract of an employee who is under criminal measures according to law. The aforementioned phrase, “under criminal measures according to law”, includes the following situations: being sentenced to fixed-term imprisonment (including those on suspension) by the courts, underRead more about 125.My employee is sentenced to imprisonment for committing a crime. Can we terminate his employment?[…]

126.My employer fired me for gross negligence and corruption. Is it legal?
18 Jan
Posted in Chapter 5 Employment Termination

126.My employer fired me for gross negligence and corruption. Is it legal?

Answer: You should first look carefully at the factual reasons and legal or institutional basis for the employer’s dismissal. If the employer dismisses you on the grounds of “gross negligence and corruption causing major losses to employer” under Article 39 of the Employment Contract Law, it is necessary to see whether you have gross negligenceRead more about 126.My employer fired me for gross negligence and corruption. Is it legal?[…]

127.One of my employee is also working for another company. Can we fire him?
18 Jan
Posted in Chapter 5 Employment Termination

127.One of my employee is also working for another company. Can we fire him?

Answer: Article 39 of the Employment Contract Law stipulates that “if an employee establishes an employment relationship(s) with aother employer(s) simultaneously, having a serious impact on the completion of their work tasks for the current employer, or refuses to make corrections after being put forward by the current employer”, the employer may terminate the employmentRead more about 127.One of my employee is also working for another company. Can we fire him?[…]

128.How to calculate economic compensation?
18 Jan
Posted in Chapter 5 Employment Termination

128.How to calculate economic compensation?

Answer: According to the Employment Contract law, economic compensation is applicable for employers to pay the employee in the following circumstances: employees are forced to resign, employment contracts expire and dissolute, employer terminates employment on the grounds of health incompetence, ability incompetence, or major changes in objective situation, or economic redundancy. The basic calculation rulesRead more about 128.How to calculate economic compensation?[…]

129.How to calculate punitive damages?
18 Jan
Posted in Chapter 5 Employment Termination

129.How to calculate punitive damages?

Answer: In case that an employers illegally terminate an employee and the employee does not elect to claim for reinstatement, the employer is liable to pay punitive damages. The calculation method for punitive damages is twice the amount of the economic compensation computed according to “How to calculate economic compensation?” (the so-called 2N punitive damages).Read more about 129.How to calculate punitive damages?[…]

  1. Pages:
  3. 1
  4. 2
  5. 3
  6. 4
  7. 5
  8. 6
  9. 7
  10. ...
  11. 17