The end of a working relationship can sometimes be an emotional period. That`s normal given the change. However, unlike the process of stopping or dismissing someone, dismissal may, by mutual agreement, constitute a consensual possibility of terminating an employment contract. In addition, the agreement explicitly states that the employer releases the worker from his future obligations. The termination of an employment contract by contract of mutual dismissal is not a condition that triggers the right to unemployment insurance under Law 4447 on unemployment insurance. Finally, I would like to say that workers must be explicitly informed before reciprocal redundancy agreements have been concluded and that the mutual and common intentions of workers must be demonstrated in order to reduce the risk of further challenge to the invalid effects of the agreement. Reciprocal termination agreements must be concluded in writing and the principle of a „reasonable benefit“ must be taken into account with respect to the rights to be granted to the worker. In particular, the granting of certain material benefits, in addition to ordinary legal compensation, is of crucial importance for the presentation of the principle of „reasonable benefit“. Laws to end employment are quite complex, both in China and elsewhere. Procedures for dismissal of workers should be supervised by experts specialising in this specific area.
Under Chinese law, employers are not allowed to dismiss their employees unilaterally and without substantial cause. For this reason, we recommend that employers carefully consider the reasons for dismissal before informing workers of their dismissal. The legality of the termination is determined by its reason. It also defines the grounds for dismissal and the amount of severance pay. If the grounds for dismissal are found to be unreasonable, we recommend that both parties agree to an agreement on termination. A termination contract is an agreement on which both parties, employers and workers, agree to end a period of employment. On the other hand, getting fired is a unilateral decision. When an employee decides to quit his job and give his opinion, he makes a unilateral decision. Even if the other party does not want to be fired or lose an employee, layoffs or layoffs are effective means of terminating the employment without the other party agreeing.