By Xu Xiaodan and Liu Chang King & Wood Mallesons’ Commercial & Regulatory Group

Txu_xiaodanhe Amendment of the PRC Population and Family Planning Law has been officially implemented as of January 1st, 2016. The aforementioned Amendment has changed China’s previous one-child policy to one that encourages couples to have a second child, establishing the “two-child policy”, under which couples are allowed to have additional children if legal requirements are met.

The issue to be addressed here, is whether an employer may terminate an employee’s employment contract, if the latter violates the national family planning policy by giving birth to a third child. This issue has baffled employers for a long time, over which no unified opinions have been formed in judicial practice.

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