The Labor Law that was introduced into China on January 1st 2008 was at that time, and to my mind, a ‘measured measure’. The intent was clearly to re-balance the relationship between employer and employee, and to do this in favor of the employee.

So far so good.

Unfortunately, the law has a provision that swings the pendulum far, far to the left, and very much in favor of the employee. This is the clause that stipulates that all terminations must be by mutual agreement and must entail economic compensation. It’s a minefield that makes it difficult to terminate the employer/employee relationship even when the employee is clearly not holding up their side of the bargain.

This definitely bothers me ……