Originally from Business Disputes In China - 3rd Edition

Chinese employment law is extremely pro-employee, and it is critical to recognize that the concept of “termination at will” or “unilateral termination without cause” does not exist in China. Rather, an employment contract can only be terminated in accordance with the 2008 Employment Contract Law (ECL), as follows:

(a) by the employer with immediate effect if the employee is at fault;1

(b) by the employer with 30 days’ advance written notice or payment of 1 month’s salary in lieu of notice2 (e.g., incompetence3);

(c) through the parties’ mutual agreement;4

(d) when the employee terminates the contract by serving the company written notice 3 or 30 days in advance;5 or

(e) by the employer in cases of economic retrenchment, which is limited to special circumstances.6