You are here: Home Law Topics Employment Law China Wronful Dismissal/Unfair Dismissal-employment law and practice - China wrongful dismissal

China Lawyer Blog - We answer your questions

China Wronful Dismissal/Unfair Dismissal-employment law and practice - China wrongful dismissal

Article Index
China Wronful Dismissal/Unfair Dismissal-employment law and practice
China wrongful dismissal
All Pages


China's legislation and judicial practice in recognition of liquidated damages with compensatory and punitive dual nature. Breach of contract is about the fulfillment of the interests of the compensation. Therefore, the essential meaning of the liquidated damages should be compensatory damages. In addition, in determining the The basic nature of liquidated damages compensatory same time, do not rule out the parties in a fair, under the guidance of the principle of good faith, agreed to apply to punitive damages. liquidated damages punitive, that it damages the basic difference. If the breach Golden only compensatory but not punitive, while the role of liquidated damages agreed to essentially the same in the damages, thus ruling out the inherent characteristics of liquidated damages, but not effective sanctions against the breach, the full protection of the interests of non-defaulting party. in the labor contract, unless there are special provisions of law (such as service, confidentiality clause, the general agreed liquidated damages shall not working.

financial compensation. In accordance with national labor laws, regulations and policies, under certain conditions, employers and workers on labor contracts should pay economic compensation. The economic compensation for workers, issued by the employing unit time . On the economic compensation should pay personal income tax issues, in September 2001, the Ministry of Finance, State Administration of Taxation jointly issued a circular, from 1 October 2001, the individual due to labor relations with the employer to obtain a one-time compensation income, the income year in the local average wage of less than 3 times the amount of parts, exempt from personal income tax, the excess part of the in accordance with the relevant provisions of the calculation of personal income tax. enterprises in accordance with the provisions of relevant state laws and bankruptcy, corporate workers from the bankrupt enterprises to obtain a one-time relocation income, exempt from personal income tax.

  • Goal

  • Fees

The law blog is running by a China lawyer working for a full-service law firm, offering practical, results-driven advice on employment law, divorce, company law, and other legal issues. Our goal is to manage these issues effectively so that our clients can focus on what they could do best.

China Lawyer Blog will charge you under your specific circumstances in the following styles:
(1) Hourly fee arrangements
(2) Contingency fee arrangements
(3) Flat fee arrangements
(4) Percentage fee arrangements

Learn More...


China Lawyer Blog China Lawyer Society

China Lawyer

I am a licensed China lawyer. Most clients are foreign nationals and companies. China Lawyer Blog have associates in Beijing, Shanghai, Tianjin, Guangzhou, Suzhou, Nanjing, Qingdao, Fuzhou, Hainan, Hefei, Wuhan, Xian, Changsha, Xiamen and Hangzhou. Learn More

Latest Comments


China law society award

Style of Service

This China Lawyer Blog is aiming at providing better knowledge and understanding of Chinese law for foreigners. Should you have any legal issue in China, do not hesitate to contact China Lawyer Blog for consultation. Preliminary consultation is free. Further legal service, however, will be charged in due rate and in due course.

You are welcomed to ask for a quotation pursuant to your specific circumstance.

About author

China Lawyer BLog AuthorPeter Zhu, an experienced China attorney licensed to practice law for more than ten years, the author of this China Lawyer blog, welcomes any enquiry or consultation related to Chinese law.