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Can a Foreign-Invested Company Dismiss an Employee for Misconduct in China?

Keywords: employee dismissal in China | foreign-invested enterprise employment | employment contract termination | China labour arbitration

Illustrative scenario

A foreign business’s China subsidiary finds that an employee repeatedly breached internal rules and sent client information externally. Headquarters wants immediate dismissal, but the employee objects. Emails exist, while the lawful adoption and communication of the employee handbook remain unclear.

How a China lawyer can assist

We can review the employment contract, procedures for adopting and communicating rules, the alleged misconduct and evidence, and assess unilateral termination, alternative measures and potential liability for unlawful dismissal. Whether misconduct is serious depends on the rules, facts and applicable requirements.

We can help develop a China-law-compliant investigation and evidence preservation plan, review notice and procedural requirements, negotiate termination, and represent clients in labour arbitration and litigation where conditions are met. For ongoing compliance, we can review handbooks, employment contracts, confidentiality and non-compete arrangements, including role, duration and compensation requirements.

Before deciding to terminate, engage us to assess the specific evidence and applicable Chinese law, or to prepare a rights-protection plan.

Attorney: Hongyu XiaoLicense no.: 13201201611507524

Lantai Partners · International Legal Services Team

WhatsApp: +8618994028276Email: [email protected]

The information on this website is for general informational purposes only and does not constitute formal legal advice on any specific matter. An attorney-client relationship is established only after a conflict-of-interest check, execution of a written engagement agreement and completion of any other applicable procedures. Outcomes depend on the facts, evidence, applicable law and requirements of the relevant authorities.