The situation: A foreign employee is told their employment contract is terminated immediately on the grounds of organisational restructuring, without any prior notice or end-of-service compensation.
Applicable law: Article 39 of the Labor Contract Law defines the cases where immediate dismissal is permitted (serious violation, fraud, criminal offence). Termination for organisational reasons under Articles 40 and 41 requires 30 days' prior notice or one month's salary in lieu, plus severance under Article 47 (one month's salary per year of service).
Typical outcome: The employee approaches the Labor Arbitration Committee claiming double compensation (Article 48): two months' salary per year of service if wrongful termination is established.
👷 Labour disputes · Awareness case
Wrongful Termination — When the Employer Ends the Contract Without Legal Justification · Yalla China
🤝 Governing law: 劳动合同法 / Labor Contract Law Arts 39-48
You were told your contract was terminated suddenly without adequate notice and without compensation — is the employer entitled to do this?
Illustrative, general educational examples — not real specific facts and not legal advice; for awareness only. For an actual situation, consult a licensed lawyer.
🎓 The lesson / takeaway
Lesson: Keep a signed copy of your employment contract and document all communications with company management. The limitation period for filing a labour arbitration claim is one year from the date you became aware of the violation.
🕒 Updated: 16 March 2026