Meaning
Statutory termination of a labor contract without severance pay for cause occurs under specific legal conditions. The Labor Contract Law of the People’s Republic of China provides the legal basis for an article 39 dismissal when a worker commits a serious breach of company regulations. Employers must establish that the employee failed to satisfy recruitment conditions or committed gross negligence.
Management Authority
Unilateral termination power belongs to the company when performance standards are not met. An employer executes an article 39 dismissal when it can prove the employee caused damage to the business. Evidence of the breach must be collected before the notice is issued.
Procedural Prerequisite
Compliance with internal bylaws ensures the validity of the termination. Before an article 39 dismissal occurs, the company must verify that its rules were legally enacted through consultation. Failure to inform the labor union in advance often leads to the dismissal being declared unlawful.
Formal notification to the worker is required. Documentation of the specific violation remains the primary defense in court.
Bylaw Enforcement
Clear definitions of serious misconduct provide legal certainty for the action. Tribunals evaluate the article 39 dismissal based on the reasonableness of the penalty. Records must show the employee knew the rules.
