Act Wisely While Terminating a Female Employee in China

Firing a pregnant female employee unilaterally in China will automatically lead to legal action. You might destroy any positive work you’ve done toward building trust and creating an outstanding company culture. Although there are provisions to sack a pregnant female employee without paying severance, but the process is long, complicated and uncertain. In reality, your right to fire is becoming more and more restricted because the legal process for terminating an employee in China is much more employee-friendly than in some other jurisdictions like the United States.

The onus is on the employer to make their points. Terminated employees can threaten to turn on their employer and report the employee to the tax authorities, the local labor commission or some other government agency. In China, no woman employee can be dismissed on account of her pregnancy. It is the right of the employee to get medical benefits since such grant of maternity benefit is according to the mandate of the law.

But that doesn’t mean you cannot fire a woman employee, there are certain procedures you need to follow-

  • Don’t Fire a Female Employee in China Unless You Are Meeting Face-to-Face

It is advised by the China lawyers not to fire a female employee without having a face-to-face meeting with her. In this way, you may place your case in an easy way, and if she is willing to cooperate, you don’t need to get involved in a lengthy and expensive court case. Do not fire an employee using any electronic method—no emails, IMs, voicemails, or phone calls. They deserve a face-to-face meeting. Nothing else works.

  • Offer Severance Package

The legal problem arrives at the time of terminating China female employee when the foreign employers try to avoid paying severance package. According to the China business lawyers, sometimes employers think they can easily get away without giving severance package. The biggest mistake is, they fail to realize that the cost of legal battle is much more than the amount of severance package. While there is no absolute way to prevent a terminated employee from filing a complaint to the court, employers can mitigate the risk of involving in a long legal battle by simply offering the severance package to the female employee.

  • Know the Employee Termination Act of China-

It is always good to have a proper knowledge of the employee termination law of China. Remember, China is an employee-friendly nation, getting the wrong side of the law can be really painful for you. Do not take any action without consulting China lawyers.

Don’t Fire an Employee Without a Checklist in Hand

An employment termination checklist can keep you organized and on-track when you need to fire an employee. Take a look at the contents of the Employment Termination Checklist-

>> Official Notice to Human Resources

>> Permissions / Access Termination

>> Return of Property

>> Confidentiality and Non-compete Agreements

Final Thoughts

Sometimes terminations of the female employees in China are swift and bereft of any legal hassle. But other times, there might be a long legal battle awaits for you. It all depends on how you want to handle the entire matter.

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Things to Keep in Mind While Sourcing Products from Vietnam Instead of China

Vietnam is quickly becoming a viable option to source products and outsourcing manufacturing projects. The footwear giants like Nike and Adidas have been steadily moving production out of China to Vietnam. Facing rapid wage rises in China, companies from all over the world are attracting to Vietnam for its competitive labor cost, top-notch quality and lightning-fast productivity. Another major advantage of this country is its location as it is situated at the heart of Asia.

Foreign-Owned Manufacturers in Vietnam

Vietnam business set up has become an appealing option for many foreign companies. It is noted that, because of the recent tariff war between Washington and Beijing, US companies are more inclined to source products from Vietnam instead of China. However, China business lawyers are of the opinion that foreign entrepreneurs should be prepared for complex regulations, bureaucratic challenges and licensing delays. You need to keep in mind that many factories in Vietnam that cater to America and European and Australian companies are owned out of Chinese companies.

Your Product Should be Made in Vietnam for the US Tariff Purpose

The entire product line is located in China, the product is manufactured in China and then it is shipped to Vietnamese distributions centers from where it is transported to various locations. China lawyers suggest that, foreign businesses need to make sure that their product is actually manufactured in Vietnam, not shipped there from somewhere else. For the US tariff purpose, the product your sourcing should be completely made in Vietnam.

The Legal Consequences of Sourcing China Made Products from Vietnam-

Quite often it has been noticed that Chinese companies assure their foreign clients that they will ship their product to Vietnam from where they will ship it to their locations as though they are not from China to make it tariff-free.

>>  The first concern that China lawyers pointed out, if the deceit is revealed to the authorities, it may lead to a huge penalty as well as imprisonment.

>>  Your entire product could be ceased and your trade license may be withheld for lifetime as this type of transshipping is entirely illegal.

>>  For saving only a few bucks, your business reputation could be at stake for breaching the rules of United States customs law.

Conclusion

The decision is up to you, whether you want to follow a sound and legal sourcing strategy or take an unnecessary risk. Vietnam Manufacturing is booming and finding the right supplier is getting easier, so you don’t need to take any unethical steps.

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