Exhaustive grounds for termination
PRC law provides exhaustive grounds for unilateral termination — and employers lose roughly 70% of contested cases.
The wrong assumption: “We can let underperformers go like we do at HQ.”
Performance-based termination requires documented PIPs, training, and redeployment efforts. Absent those, the outcome is reinstatement or double statutory severance.
The right approach: Build PRC-compliant performance management from day one — documented goals, feedback, training, and redeployment — and treat every termination as a potential arbitration with the evidence trail it will require.
We work in English and Chinese, on your timeline. Initial consultations are confidential and without obligation.