The mechanism for terminating employment contracts has much room for optimisation in terms of legislative support
In 15 years since enactment and implementation of the Labour Contract Law, an amendment to provisions on labour dispatch was made only once, in 2012. Some provisions are now no longer suitable for handling current labour disputes.
As termination of labour contracts has become the most likely cause of labour disputes, further clarification of provisions relating to the right to terminate may help to reduce disputes and divisions in adjudication. The following suggestions are made.
Increasing period for exercising right to unilateral termination of an employment contract. Article 20 of the repealed Regulations on Rewards and Punishments for Employees of Enterprises clearly stipulated the time limit for employers to punish their employees, while chapter 4 of the Labour Contract Law – entitled “Dissolution and Termination of Labour Contracts” – contains no similar provisions.
A search of local normative documents and judicial precedents shows that only some provinces and cities have adopted local normative documents and other means to unify decision making on the issue of the time limit to exercise an employer’s right to terminate a labour contract.
For example, article 12 of the Detailed Rules for the Implementation of Certain Issues Concerning the Labour Contract Law in Tianjin stipulates that the time limit is six months. But most provinces and cities do not...
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