How to fire a general manager of a Company in China?

I. Basic Facts and Legal Concepts in the Ongoing Case

Shanghai Jahwa Corporation, a listed public company in China, was not happy with its general manager in an internal corporate struggle, so Jahwa's board of directors made a decision in May of 2014 to fire the general manager citing the manager's personal responsibility for loopholes in Jahwa's internal …

employee non-competition obligation in China labor/employment Laws

An expat working in Shanghai came to me the other day for advice on his non-competition obligation under his labor contract with in foreign invested company here.

The expat was ready to quit the current job and moved forward for a better one. In his contract with the Shanghai employer, he, as a senior manager, was subjected to a non-competition obligation. But…

What ensues when your China labor contract expires?

We are talking about fixed term China labor contract or employment contract. While this topic may not be very interesting to expat employees in China, it may be very relevant for foreign investors operating business in China.

Assuming that A signs a two-year labor contract with his employer, upon expiration of the contract term, his employer does not wish to…

Is it legal to terminate labor contract upon closure of branch office?

One of my corporate clients for whom I have been providing outside legal counsel service in regard to labor laws or employment laws recently put forward another interesting problem before me. It is always a pleasure to research on a new legal topic and find a solution for it.

Here is the situation: this foreign invested company is headquartered in Shanghai but…

Classification of Employees Conducts in China’s Workplaces

Enactment of the Labor Contract Law of the People’s Republic of China (hereinafter “Labor Contract Law”) has very much changed the landscape of employer and employee relationships in Chinese workplaces. One of the most strongly felt pains is the inability for employers to dismiss unwanted employees as the Labor Contract Law has substantially restricted…

Work ethic among Chinese employees: water that is too clear has few fish

Water that is too clear has few fish, and one that is too critical has few friends. This is a Chinese idiom from old history. This reflects well an aspect of Chinese culture and philosophy with respect to interpersonal dealing among Chinese people. It preaches the idea that one shall be tolerant with other people's mistakes and errors in order to be able to get along…

Chinese Labor Contract Law, it is not for you, dude!

One of my corporate clients recently asked about how to terminate the employment of one of its senior officers. The client is a WFOE invested by an American company. The poor employee is one who has served the WFOE for more than ten years taking up the regional sale manager position and receiving a hefty monthly salary of more than RMB 50,000. Due to the dipping Chinese…

the dilemmas for expat employees in China

Recent two labor dispute cases in Shanghai I came to learn have further demonstrated the dilemmas that are faced by foreigner employees in China, which do not seem to be solved any time soon. Bear in mind, in this post, I discuss the dilemma for expat employees whose monthly salary is well above three times the average monthly salary (RMB 3896 in 2011) …