Today on the International Trade Resources Podcast, Kim Kirkendall is joined by Russell Brown, CPA Acclime China and Art Dicker, Attorney at R&P Lawyers China to discuss scaling back or closing down operations in China. This podcast is an excerpt from a webinar on the topic presented recently. 

First Kim and Art give an overview of employment basics in China, emphasizing the importance of signed labor contracts. They also discuss contract nuances, including varying contract lengths and rules after 5 and 10 years of employment, and the importance of keeping copies of key employees' contracts at headquarters.

Termination and severance in China are highly regulated. If an employee is dissatisfied with the termination offer, especially in cases of unilateral termination, they have the option to appeal to the Labor Bureau. This appeal process involves mediation by the Labor Bureau, which works with both the employee and the company to reach an agreement. Three categories of reasons for termination are with cause, without cause, and unilateral termination, and cooperation with the Labor Bureau during mass terminations has many benefits. 

• Next, Kim and Art discuss severance. The calculation of severance pay can vary depending on factors such as the employee's wage, years of service, and whether notice is given or not. It's important to note that there are nuances to these calculations, and the specific circumstances can impact the final severance amount.

Lastly, Kim and her guests discuss the importance of considering evidence and preparation when dealing with employees who may be involved in side businesses or handling trade secrets. Handling such cases requires a combination of legal measures, evidence gathering, and proactive preparation to protect a company's interests and intellectual property. Find all this and more in today’s information-packed episode!

Things you’ll learn

• Overview of employment basics in China, emphasizing the importance of signed labor contracts.
• Importance of keeping copies of key employees' contracts at headquarters.
• Types of termination: with cause, without cause, and unilateral termination.
• Considerations for evidence and preparation when dealing with employees involved in side businesses or trade secrets.
• The role of corporate resolutions in removing key personnel.

Episode Sponsors:

Acclime China:

https://china.acclime.com/

Corporate Services and full Accounting/CPA/Tax for China.

Website: www.intltraderesources.com

Email: [email protected]

Disclaimer: The content of this podcast is for informational purposes only and does not constitute legal or commercial advice. We provide no guarantee for the accuracy of the information provided. Reproduction or transmission of this podcast is strictly prohibited.