WHAT 经济性裁员 MEANS
What 经济性裁员 means
The Labour Contract Law permits workforce reductions in defined situations and imposes procedural steps, including consultation / reporting requirements and priority-retention rules for specified employees.
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Why the role matters
A business reorganisation does not automatically justify a mass dismissal. Headcount thresholds, qualifying grounds, protected employees and local procedure should be checked before implementation.
CONTEXT
Where you see the term
ContextWhat it means there
RestructuringBusiness difficulties or major operational changes.
Employee consultationRequired process may involve the union or workforce.
RehiringStatutory priority rules may apply within a specified period.
TRANSLATION NOTE
文/A
Translation note
经济性裁员 is best rendered “economic layoff” or “collective redundancy”. “Downsizing” is descriptive but not the legal term.
AUTHORITY
Primary legal basis
ILLUSTRATIVE EXAMPLE
Example
A manufacturer closes one production line and plans to dismiss 40 employees. It must test whether the statutory economic-layoff route applies and follow the required procedure.
SOURCES AND REVIEW
Primary authorities.
18 Sep 2026
OFFICIAL SOURCESUPPORTSCHECKED
PRC Labour Contract Law
PRC Labour Contract Law
MAINTAINED BYChina Legal Portal Editorial
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