Identify the legal route
A negotiated termination, a misconduct dismissal, a non-fault termination and a statutory economic redundancy have different requirements. The starting point is the actual reason for the decision and the evidence supporting it.
A business restructuring does not automatically establish a lawful ground for dismissal. Review the proposed change against the contract, applicable rules and the circumstances of each affected employee.
Review the steps and the cost
The assessment can cover consultation, notice, trade-union procedures where applicable, special employee protections and the basis for compensation. Do not treat a severance calculation as a substitute for assessing lawfulness.
For an economic redundancy under Article 41 of the Labor Contract Law, review the statutory grounds, headcount thresholds, explanation and consultation steps, reporting requirements and priority-retention rules.
Prepare a workable implementation plan
Depending on the agreed scope, work may include a risk assessment, document review, a communication sequence or support for negotiations and disputes. Confirm fees, authority and deliverables before representation begins.
PREPARE FOR THE DISCUSSION
Documents to bring together
- Proposed business change, reasons and affected headcount.
- Contracts, job descriptions and relevant policies.
- Pay history, length of service and special protection circumstances.
- Existing consultation, notices, evidence and proposed dates.
Legal sources
Official sources · Checked 2026-09-20. English explanations are summaries, not official translations.
- PRC Labor Contract Law (2012 amendment) ↗
Articles 36 and 39–48.