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Employment Termination in China

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Termination process

Employment contracts in China can only be terminated with clear justification and severance payment made to the concerned employee.

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Notice period

The standard notice period of employer and employee is 30 days and the notice has to be given in writing, although payment can be made in lieu of notice. During probation period, the employee's notice is 3 days.

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Severance pay

Employees are entitled to a month’s pay for every year worked, with any tenure up to six months but less than a year counted as a year. Employees with less than six months’ tenure and are not in probation period are entitled to half a month’s pay if they’re let go. Severance is not payable under summary dismissal.

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Probation periods

Probation periods can last anywhere from a month to six months, depending on the term of employment. Probation periods are not extendable.