Money & workIdea 6 · 1 min read
Unlawful termination compensation is twice the statutory severance standard
Grade A evidenceValue: High
In plain language
An unlawful termination can require 2N under Chinese law. Whether it is unlawful depends on the facts. Consult legal aid or a lawyer before choosing negotiation or arbitration.
MoneyNo cost
TimeSome time
EffortSome effort
What it takes
No arbitration fee described, but proceedings can take months and require sustained follow-up.
What you may gain
Labor Contract Law Article 87 requires employers unlawfully terminating or ending a contract to pay compensation at twice the Article 47 severance standard: calculate N, then double it.
Context & considerations
This is the commonly used term 2N. Obtain advice on the particular termination before deciding the route; see Chapter 7.
Research & references
NPC Standing Committee (2007). Labor Contract Law, effective January 1, 2008, Article 87. http://www.gov.cn/gongbao/content/2007/content_711013.htm