How To Successfully Conduct Mass Layoffs In China

Law360, New York (March 24, 2014, 5:18 PM EDT) -- U.S. companies with operations in China have increasingly been conducting mass layoffs. There are various reasons for this, including poor economic performance, rising labor costs, increased internal operating efficiencies and new restrictions on the use of dispatched labor.

Terminating individual employees is difficult enough in China. Employers can only terminate employment relationships for cause as set out in the Employment Contract Law ("ECL"), with most grounds too difficult to meet to be widely useful to employers. The difficulty is magnified significantly when an employer is trying...
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