Checklist for Reducing Staff in China due to Restructuring

In general, an employer in the mainland of People’s Republic of China (“China”, excluding Hong Kong, Macao and Taiwan solely for the purpose of this article) can only unilaterally dismiss his employees in writing and for at least one of the statutory reasons.

In the course of a restructuring, to reduce their staff, among others employers often consider using dismissal due to material change in the underlying objective circumstances, mass layoff, mutual termination or ending by law due to earlier dissolution of the employer.

You can download below a summary of certain relevant issues based on our practical experiences.

Click here for download (pdf)