Even in the best of times, employee terminations in China are fraught with risk. A mishandled China employee termination (or even just the discussions surrounding the termination) can quickly cause problems. China’s declining economy has weakened its job market and made both employees and the government more likely to fight back against any little termination mistake.
Now is not a good time for employers in China (especially American companies) to be doing anything that does not fully comply with China’s employment laws. China’s relations with the West — especially the United States) are at a low point right now and this has and will continue to play out to the detriment of every Western company doing business in China. See China Retaliation Is “11” on Scale of 1 to 10, where Bloomberg News highlights “increased anecdotal evidence that the Chinese government is tightening its overview of foreign firms.” This has already translated into China significantly toughening its law enforcement against foreign businesses, including on the employment law front.
All this means that employers in China need to have well-crafted employment contracts and employer rules and regulations (aka employee handbook) and should also periodically conduct employer audits to make sure their China employment program (in each city in which they have an employee) is in good legal shape.
It is critical that you perfectly map out and execute your China employee terminations. Better to be deliberate and...
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