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Labor Disputes in China: Prepare for Aggressive Negotiating, Uncomfortable Concessions

Wednesday, 22nd June 2017

"Negotiated settlement is often required to sever the employment of a senior manager with minimal disruption and expense. This is nowhere more true than in China, where private dispute resolution is strongly favored.

However, in China, the labor dispute system encourages compromise and payment of severance. In some cases, this can encourage employees to negotiate aggressively to force employers into uncomfortable concessions.

For foreigner managers accustomed to dispute resolution processes in the West, where establishing fault and faultless behavior is seen as paramount, especially where fraud or bad faith exists, a greater emphasis in China on making concessions and paying severance to an opportunistic employee may be a bitter pill to swallow. Yet, it may be the most practical recourse.


In this two-part article, we outline the “lawful” ground for termination, and the inherent pressures in the Chinese labor dispute system to settle disputes by compromise and concession."

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Language: English
Contact: Chet Scheltema

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