The company's right to terminate the employment contract

1. In the following cases, the company is entitled to terminate the employment contract unilaterally without prior notice to the employee:

a) the employee is proved not up to the requirements for recruitment during the probationary period(usually the probationary period is 3 months);

b) the employee seriously violates the discipline or regulations of the company;

c) the employee causes great losses to the company due to his/her dereliction of duty or engagement in malpractice for selfish ends;

d) the employee is facing investigation by the police for criminal action.

2. In the following cases, the company can terminate the employment contract but a written notice shall be given to the employee 30 days in advance:-

a) after the completion of medical treatment for illness or non work-related injury, the employee is unable to take up his/her original work or any new job assigned by the company,

b) the employee is unqualified for the work assigned and continue this status even after he/she receives training or adjustment to other position;

c) no agreement on modification of the employment contract can be reached between the company and the employee when the conditions taken as the basis for the conclusion of the employment contract have greatly changed so that the original employment contract can no longer be carried out.

d) during the period of statutory consolidation when the company comes to the brink of bankruptcy or runs into difficulties in production and management, and if reduction of its personnel becomes really necessary, the company may make such reduction after it has explained the situation to the trade union or all of its staff and workers 30 days in advance, solicited opinions from them and reported to the labour administrative department.

3. Both the company and the employee can terminate the employment contract if they reach an agreement.

In above-mentioned 2 and 3, the company is liable to pay compensation to the employee when the employment contract is terminated.