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中国劳动法资讯速递-北京大成上海律师事务所
PRC Labor and Employment Law Newsflash - February of 2012 © Dacheng Law Offices
PRC Labor and Employment Law Newsflash
February, 2012
Tips on Layoffs in the New Year
Shocked by the US and Europe debt crisis, the external market is going weak together with the
domestic demand slowing down, followed by the potential risks increasing in the fields such as real
estate market, investment and financing platforms and private sector borrowing. As a result of all
these unfavorable factors, the pressure on operation costs of enterprises is quite heavy. In order to
lower the costs, several large and medium sized foreign investment enterprises adopt job cutting
strategies since the second half of 2011. However, after entering the year of 2012, the
aforementioned situation is not obviously improved. Hence, many people are afraid that they will see
the repeat of the layoffs in 2008. After handling and summarizing a large amount of job cuts, the
Labor Law Team of Dacheng Law Offices offers the following issues and suggestions for your
reference.
1. Can “payment in lieu of notice” substitute for “issuing a statement to the trade union or to all
employees with thirty days’prior notice”?
The procedural requirement is stipulated in Article 41 of Labor Contract Law of PRC which includes
issuing a statement to the trade union or to all employees with thirty days ’ prior notice. The job cut is
not due to the faults of employees or the personal reasons and it always causes inconvenience to
employees’ life and other aspects. Therefore, the opinion of the trade union or employees shall be
heard and considered and the employees have the right to negotiate the lawfulness and
reasonableness of the workforce-reduction pla
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