In a case reported on 10 April 2014, the First Intermediate People’s Court of Chongqing ruled that a company’s unilateral termination of an employee without notice to a labour union was lawful. The people’s court ruled that the Employment Contract Law requirement to notify a company labour union of the reasons for a unilateral termination is inapplicable if a company has yet to establish a company labour union among its employees.
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Business Law Digest is compiled with the assistance of Baker & McKenzie. Readers should not act on this information without seeking professional legal advice. You can contact Baker & McKenzie by e-mailing Danian Zhang (Shanghai) at: danian.zhang@bakermckenzie.com