Employment Law and Wrongful Termination

Yunqing Peng is an employment and labor lawyer based in Shangrao, northeastern Jiangxi. Ms. Peng represents both employers and employees in a wide range of labor disputes, with particular focus on wrongful termination, employment contract compliance, and workplace discrimination matters.

Wrongful Termination Under Chinese Law

China's Labor Contract Law provides strong protections for employees against arbitrary dismissal. An employer may terminate an employment contract only under specific circumstances enumerated in the law, including mutual agreement, summary dismissal for serious misconduct, non-fault dismissal with 30 days notice or pay-in-lieu, and economic layoff due to significant operational difficulties. Terminations outside these statutory grounds constitute wrongful termination.

• ⚖️ Summary Dismissal Applicable only for material breach of contract, criminal liability, or gross negligence causing substantial harm. Burden of proof rests on the employer.
• 📋 Non-Fault Dismissal Requires either 30 days advance written notice or one months salary in lieu, plus statutory severance. Applicable for illness/injury, incompetence after training, or fundamental change in circumstances.
• 💰 Severance Calculation One months salary for each full year of service, with fractions of a year counted proportionally. Caps apply for high-earning employees.

Remedies for Wrongful Termination

When a termination is found to be unlawful, the employee has two options: reinstatement to the original position, or double severance (2N) as compensation. In practice, most wrongfully terminated employees choose monetary compensation rather than reinstatement. Ms. Peng advises clients on the strengths of their claims and negotiates settlement agreements where appropriate.

The Shanghai Higher People's Court has held that employers who fail to follow the statutory procedure of notifying the labor union before termination lose the right to claim the termination was lawful, even if substantive grounds exist.

Employment Contract Compliance

Ms. Peng advises foreign-invested enterprises on employment contract compliance, including fixed-term versus open-term contracts, probation period rules, non-compete covenants, confidentiality obligations, and the use of dispatched (seconded) workers. She also assists with workforce reduction planning (layoffs) that comply with the statutory consultation and reporting requirements.

Workplace Discrimination and Harassment

Under China's Labor Law and the Civil Code, employees are protected against discrimination based on ethnicity, race, gender, religion, and disability. Ms. Peng handles discrimination claims and has particular expertise in sexual harassment cases under the new provisions of the Civil Code, which impose an affirmative duty on employers to prevent and address workplace harassment.