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Employment & Labor

3 min read Updated Jul 15, 2026

Wrongful Termination and Employee Rights in China: A Complete Guide to the Labor Contract Law and Severance

A guide to wrongful termination and employee rights in China. Severance calculation and double compensation.

Statute Art. 39
Theme Wrongful termination
Li Sun - Wrongful Termination China

Employment termination is one of the most frequently litigated areas of Chinese labor law. The Labor Contract Law provides comprehensive protection for employees against wrongful termination. Qinzhou employment lawyer Li Sun provides this guide to understanding your rights.

Legal Grounds for Termination

Under Articles 39-41 of the Labor Contract Law, employers may terminate only on specific grounds. Article 39 allows immediate termination for misconduct. Article 40 allows termination with 30 days notice for incompetence or changed circumstances. Article 41 allows reduction in force under strict conditions.

Wrongful Termination Compensation

Under Article 87, wrongfully terminated employees receive double the standard severance. Standard severance is one month's salary per year of service. An employee with 10 years of service receives 20 months of salary.

Years of ServiceStandard SeveranceWrongful Termination
5 years5 months10 months
10 years10 months20 months

Special Protections

Article 42 protects employees during medical treatment, pregnancy, breastfeeding, and those within five years of retirement with 15+ years service.

If you have been wrongfully terminated, do not delay — the one-year statute of limitations is strictly enforced.

Employment Law Application Notes

I treat bilingual consistency as a risk control: chops, authority documents, and English summaries must tell the same commercial story.

I prefer early written notices and clean evidence indexes over informal WeChat-only chains when the amount or regulatory exposure is material.

  • ⚖️ Written scope and remedy map
  • 📜 Bilingual document control
  • 🛡️ Deadline and limitation tracking
  • 💼 Enforcement and settlement options in parallel

Operational Checklist for Foreign Readers

I prefer early written notices and clean evidence indexes over informal WeChat-only chains when the amount or regulatory exposure is material.

I convert complex Chinese procedure into a dated checklist with owners for translation, notarization, and internal sign-off across time zones.

  • ⚖️ Written scope and remedy map
  • 📜 Bilingual document control
  • 🛡️ Deadline and limitation tracking
  • 💼 Enforcement and settlement options in parallel

Risk Controls Before Escalation

I convert complex Chinese procedure into a dated checklist with owners for translation, notarization, and internal sign-off across time zones.

I plan enforcement first—assets, licenses, receivables, and interim measures—so strategy is not limited to winning on paper.

  • ⚖️ Written scope and remedy map
  • 📜 Bilingual document control
  • 🛡️ Deadline and limitation tracking
  • 💼 Enforcement and settlement options in parallel

Implementation Detail 1

I prefer early written notices and clean evidence indexes over informal WeChat-only chains when the amount or regulatory exposure is material.

I convert complex Chinese procedure into a dated checklist with owners for translation, notarization, and internal sign-off across time zones.

  • ⚖️ Written scope and remedy map
  • 📜 Bilingual document control
  • 🛡️ Deadline and limitation tracking
  • 💼 Enforcement and settlement options in parallel

Implementation Detail 2

I document scope, assumptions, and decision rights at engagement start so foreign clients know what will be filed, who must approve, and when silence becomes a missed deadline.

I treat bilingual consistency as a risk control: chops, authority documents, and English summaries must tell the same commercial story.

  • ⚖️ Written scope and remedy map
  • 📜 Bilingual document control
  • 🛡️ Deadline and limitation tracking
  • 💼 Enforcement and settlement options in parallel

Implementation Detail 3

I convert complex Chinese procedure into a dated checklist with owners for translation, notarization, and internal sign-off across time zones.

I plan enforcement first—assets, licenses, receivables, and interim measures—so strategy is not limited to winning on paper.

  • ⚖️ Written scope and remedy map
  • 📜 Bilingual document control
  • 🛡️ Deadline and limitation tracking
  • 💼 Enforcement and settlement options in parallel

Implementation Detail 4

I treat bilingual consistency as a risk control: chops, authority documents, and English summaries must tell the same commercial story.

I prefer early written notices and clean evidence indexes over informal WeChat-only chains when the amount or regulatory exposure is material.

  • ⚖️ Written scope and remedy map
  • 📜 Bilingual document control
  • 🛡️ Deadline and limitation tracking
  • 💼 Enforcement and settlement options in parallel
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Li Sun

About the author

Li Sun

Guangxi Zhenghai Law Firm. Verified listing on China Legal Portal. Insights are educational and do not create an attorney–client relationship.

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