The impacts on employers of the recent Supreme Peopleโs Court labor interpretation
Chinese labor law is primarily governed by the Labor Law, Labor Contract Law, and other supporting regulations that regulates employment relationships. Unlike the U.S. 'at-will' employment model, China mandates written labor contracts, restricts termination to statutory grounds, requires severance pay for many types of dismissals, enforces non-compete clauses, and guarantees paid leave and open-ended contracts (indefinite-term contracts that can only be terminated for lawful reasons). While U.S. employment law emphasizes employer flexibility, China's framework is more formal and worker-protective.
Historically, Chinese labor law favored employees. However, recent economic and geopolitical challenges have prompted reforms โ including the Supreme People's Court's ("SPC") 2025 Judicial Interpretation on Labor Dispute Cases (II) ("Interpretation II") - to grant employers greater operational flexibility while preserving core worker rights. As SPC officials emphasized during the interpretation's unveiling, Interpretation II seeks to "balance protections for both workers and employers, safeguarding employee rights while supporting business sustainability and orderly operations." This reflects China's effort to adapt labor protections to the evolving economic realities.
Promulgated on July 31, 2025, and effective from September 1, 2025, Interpretation II recalibrates employer-employee dynamics without undermining any fundamental worker protections. For multinationals operating in China, understanding these adjustments is essential for compliance and risk management.
AmCham China Legal Committee and HR Committee are pleased to invite all members to join this event to have further discussion with experts for the key changes and what will impact MNCs in China.
Event details:
- Event format: Hybrid
- Time & Date: 2:00 pm - 3:30 pm, Thursday, Sep 18
- Language: English and Chinese
- Contact: Ada Yang, ayang@amchamchina.org
Notes:
- Registration is required to access the meeting. Registration and refund close at 5:00 PM (China time),Sep 17.
- Please make sure to register with your company email address.
- Registration at the door is not accepted.
