China WFOE severance pay – I want to quit my job

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KateinSH Original post #1
Hello everybody. So, that’s my situation. Working for a WFOE company for 2.3 years. I signed my contract for the first year, in this contract, I asked the company to add that it would be renewed automatically if not noticed. Before the end of the second year, the company made me sign a paper in which the contract would be terminated, with the promise that a new contract would be made. So now is 3 month that I work without a proper contract, but: – company pays reguralrly, taxes included – they renew my working visa AFTER the contract was expired – In the contract was written that I am entitled of 1 month’s salary for every year Now I want to quit the job, and I ask for a suggestion. I am pretty sure I can ask for at least the 2 months I earned. I read that a period of less than 6 months counts as half month’s pay. Is it true? I also read that the company should pay an additional monthly salary if they make you work without a contract. Is it true? Do you suggest checking with a lawyer BEFORE resigning? Are there any reliable layers in China (seems a silly question)? Many thanks!

3 Replies

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Barry88 #2
You continue to operate (and to make assumptions) subject to the conditions of a contract that you admit is NO LONGER VALID. Seeing as you have NO active contract, the company is not contractually liable for any of the conditions you assert. You might want to talk to a lawyer.
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KateinSH #3
Thank you. The 2 month severance pay I believe, is well valid: the contract has ended and the company should pay as per the “old” contract. Then, what about this 3 month were I am waiting for a new contract? As far as you know the Chinese law will protect me (the employee), the company or does not bother at all since is a WFOE and I am a foreigner? Any Idea on how to find a lawyer? Thanks again!
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Barry88 #4
I know there is a stiff penalty to the company if you are working without a contract. If they did not fulfill the terms of the old contract, you can get the back pay as well. Why don’t you pursue that before resigning, or why haven’t you already done that?

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