The Regulation of Dismissal in China: Diverging Standards of Serious Breach Dismissal and the Need for Reform

This article describes the origin and development of China's dismissal legislation and local regulations. It identifies the quasi-federal nature of the Chinese dismissal system. The article then examines the legal framework of dismissal in China, focusing on dismissal types, grounds for lawful dismissal, employer obligations in terminating employment, and the remedies. The article focusses on the most important and controversial dismissal type: dismissal for breach of the employer's internal regulations under Article 39(2) of the LCL. It analyses the diverging court practices and the local regulation of this type of dismissal. Finally, the article calls for a unified system to govern unlawful dismissal and considers how ILO Convention 158 can aid in refining China's dismissal system.