Can I Fire a Non-Compliant Employee in China?

Can I Fire a Non-Compliant Employee in China?

January 2024, Covington Advisory

During our investigations in China, once we substantiate an allegation, we are regularly asked, “So can we terminate or discipline the employee?”

This article provides some practical suggestions on how investigations can be structured and executed in China to empower companies to make personnel decisions in line with their compliance policies and to minimize the risk of wrongful termination suits, which can result in the company paying the employee twice the legally required severance compensation or, in extreme cases, the reinstatement of non-compliant employees at the company. The article will not attempt to describe all aspects of investigations or employment law in China, which can be nuanced and complicated, or to provide legal advice regarding specific situations, given that each situation will be somewhat different.