What triggers severance payment?

You are entitled to severance pay under these 12 circumstances if:

1. You terminate the contract due to your employer failing to provide labour protection or work conditions as stipulated in the labour contract.

2. You terminate the contract because your employer has failed to pay the full amount of remunerations in a timely manner.

3. You terminate the contract because your employer has failed to pay social security premiums.

4. You terminate the contract because the bylaws in your labour contract thereof are inconsistent with any law or regulation and impair your rights and interests

5. Your labour contract is invalid due to your employer concluding or modifying it by way of deception or coercion, or taking advantage of your difficulties, to force you to conclude an employment contract or to make an amendment thereto, that is contrary your true will.

6. Your employer proposes to terminate the labour contract through unanimity. Note that if you are the one who proposes to terminate the labour contract, you will not get severance pay.

7. Your employer terminates the contract because you have fallen ill or gotten injured for a non-work-related reason, and you are not able to bear the original post after the expiration of the medical treatment period as prescribed, nor can you assume any other position as arranged by your employer.

8. Your employer terminates the contract because you are incapable of doing your job even after training or post adjustments.

9. The company is undergoing economic downsize layoff and you are the unlucky one.

10. Your employer has gone bankrupt, is revoked of business license thereof, is ordered to close down, is discharged, or goes into liquidation

11. The term of your labour contract has come to an end. You are willing, but your employer is unwilling to sign a new one.

12. The term of your labour contract has come to an end and BOTH you and your employer is unwilling to sign a new one.

Edgar Choi is author of “Commercial Law in a Minute” and host of a legal-advice account “Law in a minute” on WeChat

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