The Supreme People's Court issued the long-awaited Fourth Opinion on employment disputes which became effective on 1 February 2013. The main points are summarized below:

  • non-compete compensation of 30 percent of average salary of the employee in absence of any agreement on compensation
  • employers may waive non-compete commitment after termination only with 3 month’s compensation payment
  • prior years of service recognized by operation of law in certain transfer of business situations
  • non-PRC employees are not protected by Chinese employment laws without valid work permit
  • notification of enterprise union required for unilateral terminations, though failure to notify can be rectified prior to trial