Terminating employment in the Chinese Mainland is no longer a routine HR process — it’s a legal and financial minefield. With increasingly complex regulations and rising compensation demands, companies face serious risks. Severance packages worth millions of RMB are becoming common, and under the Supreme People’s Court’s Interpretation (II) on Labor Disputes, effective September 2025, unlawful termination could result in mandatory reinstatement — even if compensation has already been paid.
This exclusive workshop, led by a seasoned Chinese Mainland lawyer, will decode the latest legal developments and deliver practical strategies to help companies manage employment termination lawfully, control costs, and avoid costly legal missteps.
Learning Objectives: – Understand the different scenarios of employment termination and prepare risk management strategies in advance – Learn how to legally and reasonably reduce the financial and legal risks associated with employee termination
Workshop Outline: 1. Key Concepts in Calculating Termination Costs – Legal distinction between “employee” and “worker” – Differences between base salary and average salary – How to calculate years of service – What is payment in lieu of notice?
2. Types of Employment Termination and Key Considerations – Comparison of termination types and associated costs – Legal features and risks of mutual agreement termination – Types of employee resignation and how companies should respond – Legal risks and costs of unilateral dismissal by the employer
3. Standards for Calculating Economic Compensation and Damages – When economic compensation applies – When economic damages apply and how they differ
4. Impact of Judicial Interpretation (II) on Layoffs – How to determine if an employment contract can no longer be performed – Practical implications of Article 16 – Detailed interpretation and case analysis
5. Legal Strategies to Reduce Separation Costs – How to legally manage average salary levels – Lowering salary ≠ reducing employee benefits – Is it feasible to prepay severance? – Flexible employment models (e.g. outsourcing, part-time arrangements)
Target Audience: HR leaders, CFOs, legal directors, board members, and senior executives involved in employment decisions
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