Dismissal procedure

China dismissal: notify the trade union before the decision

Headquarters approval is only one step in a China dismissal. A company may have evidence supporting its chosen ground and still overlook the trade-union procedure. For mainland China employers planning an ordinary unilateral termination, identify the applicable union process before announcing the decision to the employee. This review focuses on notice and evidence, alongside the separate assessment of whether the dismissal itself is lawful.

1. Identify the legal route and the correct union

Article 43 of the PRC Labor Contract Law requires the employer to notify the trade union of the reasons in advance when unilaterally terminating a labor contract. The union can require correction of violations; the employer must consider its views and inform it of the outcome in writing. Build this into the China entity’s timetable. An overseas manager’s approval or a discussion with HR does not perform the union’s role.

Confirm the actual employing entity, work location, whether a union has been established and which organisation covers it. A union at another group company is not automatically the right recipient. If the employer has no union, Article 47 of SPC Interpretation (I) expressly addresses employers that have one; it does not settle every no-union scenario. Check applicable local rules and practice, including whether an upper-level or local union should be notified. Do not assume either a nationwide exemption or a uniform substitute recipient.

2. Separate union notice from the employee’s notice period

For dismissals under Articles 39 or 40, review the union step separately from the substantive ground. Article 40’s 30-day written notice to the employee, or an additional 1 month’s wages in its place, does not replace Article 43. Conversely, notifying a union does not cure missing evidence of serious misconduct, missing training or reassignment where required, or a protected circumstance that bars the chosen route.

Article 43 itself does not set a universal minimum number of days for union notice. Allow a real opportunity for the union to consider the proposed reasons, check any applicable local or collective-agreement procedure, and address its views before implementation. Statutory economic redundancy has the additional explanation, consultation and reporting process in Article 41; this individual-dismissal checklist is not a substitute. Mutual termination and contract expiry also require their own legal assessment.

3. Prepare a notice that the union can meaningfully review

As a practical record, give the union the employing entity, employee concerned, proposed ground, relevant facts and dates, the rule or statutory basis relied on, and the proposed timing. Attach the necessary supporting material with access limited to the review. Use a written notice and preserve delivery and receipt evidence, even though Article 43 expressly specifies writing for the employer’s outcome response rather than prescribing one national notice template. Keep the union notice and employee decision consistent.

Retain the union’s response, the employer’s analysis of any objections and the written outcome sent back to the union. A received stamp shows receipt, not necessarily agreement. Article 43 is a supervision procedure, not a general requirement to obtain union consent; equally, silence should not be described as approval. If the union identifies a factual or legal problem, investigate and correct it before proceeding. A materially changed ground needs renewed procedural review.

4. Treat correction of a missed notice as a limited remedy

Article 47 of SPC Interpretation (I) on Labor Disputes, Fa Shi [2020] No. 26, covers an employer with an established union whose termination satisfies Labor Contract Law Articles 39 or 40 but which failed to give prior union notice under Article 43. Where the employee claims damages for unlawful dismissal, the court should support the claim, except where the employer has corrected the relevant procedure before court proceedings are commenced. The text does not say “before the hearing” or give a fixed number of days after dismissal.

If the gap is discovered after dismissal, preserve the actual sequence immediately and have counsel check the arbitration or litigation stage, any filing date and what genuine correction requires. Do not backdate a notice, receipt or union opinion. A later acknowledgment alone should not be assumed sufficient, and procedural correction does not create a lawful dismissal ground that was absent. The rule is a limited defence to the identified procedural defect, not a reason to plan to notify late.

5. Give the decision-maker a short, auditable file

Before the meeting, assemble the contract and relevant policies; the evidence for the chosen ground; the union’s identity and coverage record; the notice and attachments; dated delivery and receipt records; the union’s views and written outcome response; and the proposed employee notice. Add a chronology distinguishing internal approval, union notification, response, employee delivery and intended effective date. Under Article 44 of Interpretation (I), the employer bears the burden of proof in disputes arising from its dismissal decision.

For a focused employer review, start with the China entity, city, proposed ground, union status, whether the employee has already been notified and the next real deadline. Share only a non-confidential outline through the contact page first. The review can identify whether the notice package and sequence are ready, whether a gap can still be addressed, or whether the dismissal plan needs reconsideration. Legal consultation is available in Chinese and English.

Legal sources

Official sources · Checked 2026-10-14. Translations are for reference and are not official legal texts.

General information about mainland China. The facts, applicable dates and local rules require individual review.

Jianxing Pan
Jianxing Pan

Partner, Beijing ChangAn Law Firm
China-qualified since 2019 · Beijing & Shenzhen

Review the union procedure before dismissal

Check the recipient, reasons, delivery sequence and evidence before issuing the employee’s decision.

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