
China Employee Terminations: Make Them Mutual When Possible
1. Why Mutual Termination Agreements With Departing Employees Are So Important Terminating China-based employees is difficult. Article 40(2) of China’s Labor Contract Law permits an employer to unilaterally terminate an employee, with severance, if the employee is incompetent and remains incompetent after training or assignment to a different position. In practice though, Chinese courts tend to be