PRC Employment Contract Law

By Linda Liang and Wen Qin, King & Wood Mallesons’ Labor Group

untitledMs. Li was first employed by Company A as Chief Financial Officer on November 29, 2012. The two parties had signed a three-year employment contract, the term of which is from November 29, 2012 to November 28, 2015, and the probation period is from November 29, 2012 to January 28, 2013. The Company and Ms. Li agreed in the Offer Letter that, the Company is entitled to extend the probation period based on Ms. Li’s performance during that period. On January 16, 2013, the Company conducted a performance evaluation on Ms. Li, and the result showed that the Company needed to extend Ms. Li’s probation period for another one month. Ms. Li had no objection to this decision and the Company extended her probation period to February 28, 2013. When the extended probation period was about to expire, the Company conducted another performance evaluation on Ms. Li, which showed that Ms. Li’s performance was unsatisfactory. Meanwhile, taking Ms. Li’s fake education credentials, frequent lateness and serious absenteeism into consideration, the Company terminated the employment relationship with Ms. Li on February 23, 2013 in accordance with Article 39 (1) of PRC Employment Contract Law. According to this Article 39 (1), if the employee is proved as having failed to meet the recruitment requirements during the probation period, the employer is entitled to dismiss him/her.
Continue Reading Extending the Probation Period?——Don’t Be So Capricious