If your employer dismisses you without a lawful reason or the correct procedure, the termination is unlawful: under China’s Labor Contract Law you can demand to keep your job with back pay, or accept the dismissal and claim compensation equal to twice your statutory severance.

What the law says

An employer may only end an employment contract on the grounds the law allows.

  • Article 39 lets an employer dismiss you immediately, with no severance, but only for six specific reasons: you fail the probation standard; you seriously breach company rules; you seriously neglect your duties or act for personal gain and cause major loss; a second job seriously affects your work (or you refuse to stop after being told); you obtained the job by deception or coercion; or you are held criminally responsible.
  • Article 40 allows dismissal with 30 days’ written notice (or one month’s pay instead) plus severance if you cannot do your job after illness or injury, are still incompetent after training or reassignment, or the objective circumstances changed and no agreement could be reached.
  • Article 41 governs economic layoffs: cutting 20 or more staff, or 10% of the workforce, requires 30 days’ notice to the union and staff and a report to the labour authorities.
  • Article 47 sets severance at one month’s wage per year of service, with six months to a year counted as a year and less than six months as half a month, capped at three times the local average wage and 12 years.
  • Article 87 says an unlawful dismissal must be compensated at twice that severance figure.

What this means in practice

“Poor performance” on its own is not enough: the employer must first have trained or reassigned you and documented it. Firings by WeChat message, dismissals without notice or severance, and pressure to resign are the most common triggers. In practice you must go to labour arbitration first, and you generally have one year from the dismissal to file. Keep your contract, payslips and the dismissal notice, because the burden of proving the reason falls mainly on the employer.

A quick example

This is a hypothetical scenario. A foreign manager is fired by email for “not meeting targets” after a change of CEO, with no warning, no training and only one month’s pay. Because none of Article 39’s grounds apply and the Article 40 procedure was skipped, the dismissal is likely unlawful, and she can claim reinstatement or double severance.

FAQ

Q: Can I be fired in China without any notice?
A: Only if one of the six Article 39 grounds applies. Otherwise the employer must give 30 days’ notice or pay one month’s wage in lieu, plus severance.

Q: How much is double severance?
A: It equals two times one month’s wage per year of service. For example, three years of service means six months’ wages.

Q: Do I have to accept money instead of my job?
A: No. You may ask to keep your job; the compensation route applies if you prefer not to, or if the job can no longer be performed.

Q: Where do I file a claim?
A: At the local labour-dispute arbitration commission, generally within one year of the dismissal.

Wang Guan | Co-founder, Beijing Haolue Law Firm | +86 17813108512