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