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What to do when the labor contract is expired or not be renewed ?


Easy Business Solutions helped many clients to handle their employment case in the last past years. Sarah Qin was invited by EO to give a speech regarding this. The following are part of the highlights from the speech. Hope it is useful for the bosses who do business in China.

What to do when employee resign ?

Step 1: get signed resignation letter

Step 2: work handover

Step 3: settle all due payment including annual leave, overtime salary and so on

Step 4: terminate social insurance and housing fund payment

Step 5: issue an leave certificate

What to do when contract ended, and company no longer intends to renew.

Step 1: Inform the employee 30 days before the expire date. If not, salary for noticing period shall be paid.

Step 2: send an official “not renew contract” notice and get the employee confirm

Step 3: Sign an agreement for terminating the labor relationship, including due payment.

Step 4: work handover

Step 5: settle all due payment including annual leave, overtime salary and so on

Step 6: terminate social insurance and housing fund payment

Step 7: issue an leave certificate

What to do when peaceful discharging labor contract happened ?

Step 1: Sign an agreement for terminating the labor relationship, including due payment.

Step 2: work handover

Step 3: settle all due payment including annual leave, overtime salary and compensation.

Step 4: terminate social insurance and housing fund payment

Step 5: issue an leave certificate

What to do when you want to fire someone ?

Step 1: Find out how you can fire him ?

Step 2: preparing according to step 1.

Step 3: Prepare for the replacer

Step 4: Make sure all work are transferred to the replacer

Step 5: Make sure you have all the signed documents of him: including labor contract, attendance record, overtime payment , pay slip, annual leave record, commission agreement, job description.

And so on..

Step 6: Check labor contract terms, Know the worst-case scenario.

Step 7: prepare a conversation with him by HR or Boss

Step 8: Send official discharge notice.


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