According to the Labor Contract Law, determining the date to dissolve a contract may be governed according to the situations below:
1. The employee and employer reach an agreement on when to make dissolution effective. If both parties are in agreement, the contract is deemed dissolved on the agreed-upon date.
2. Employee unilaterally dissolves the labor contract
a. An employee can inform the employer 30 days in advance in written form; and the date of dissolution is 30 days after submission of notice.
b. If the employee is still within the probation period, the contract may be dissolved following 3 days prior written notice.
c. When the employee informs the employer of contract dissolution according to conditions for immediate dissolution; the dissolution date is the date of notification.
3. Employer unilaterally dissolves the labor contract
a. If an employer dissolves a labor contract due to the fault of an employee’s behavior; the dissolution date is the day of notification.
b. Under article 40 of the Labor Contract Law, when the employee is not at fault for behavior, the employer may inform the employee of contract dissolution 30 days in advance in written form, and the dissolution date is upon 30 days of expiry. For an employee who chooses payment of one month's wages instead, the dissolution date is the payment day.
c. Enterprises making layoffs, after informing the trade union 30 days in advance of the reason and reporting to the labor department, the dissolution date is the layoff date.
Email 
Print
Back