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About Hiring & Firing Law in Xiamen, China

Hiring and firing in Xiamen is governed primarily by national labor law of the People’s Republic of China together with implementing regulations and local administrative rules issued by Fujian Province and the Xiamen municipal authorities. The basic legal framework sets minimum requirements for written labor contracts, probation periods, termination procedures, severance pay, social insurance contributions and dispute resolution. Local authorities and labor dispute arbitration bodies in Xiamen enforce these rules and provide channels to resolve employer-employee disputes.

The system emphasizes worker protections - for example, employers generally must provide objective legal grounds for termination, follow notice or payment-in-lieu procedures, and pay statutory severance where required. At the same time employers have lawful options for managing performance and restructuring, subject to procedural safeguards and possible negotiation or compensation. For foreign nationals employed in Xiamen, immigration, work-permit and visa rules intersect with employment law and require special care.

Why You May Need a Lawyer

Employment disputes can involve complex facts, tight deadlines and significant financial or immigration consequences. You may need a lawyer in Xiamen-if you are an employee who believes you were unfairly dismissed, an employer planning a redundancy or restructuring, an expatriate facing visa-impacting termination, or a party facing nonpayment of wages or social insurance contributions. A qualified lawyer can:

- Assess whether a termination satisfies legal grounds and procedures. - Calculate severance, back pay, unpaid overtime and other monetary claims. - Represent you in labor arbitration, court proceedings or mediation. - Handle cross-issues such as social insurance, housing provident fund, tax withholding and work-permit cancellations for foreign employees. - Draft or review settlement agreements, termination letters and redundancy plans to reduce future disputes. - Advise on compliance steps to avoid administrative fines or criminal exposure for serious violations.

Local Laws Overview

Key legal features you should know when dealing with hiring and firing in Xiamen include:

- Written Labor Contracts - Employers must provide a written labor contract shortly after employment begins. Failure to provide a written contract may trigger penalties and increased compensation obligations. Standard national rules apply, and local authorities in Xiamen enforce those requirements.

- Probation Periods - Probation is permitted but limited by contract length. Short-term contracts typically allow shorter or no probation; longer or open-ended contracts may allow up to six months of probation under national rules. Probation conditions must be clearly stated in the contract.

- Termination Grounds and Procedures - Employers can lawfully terminate for statutory reasons such as serious misconduct, criminal conviction, inability to perform after training and reassignment, or redundancy for economic reasons. Except for gross misconduct cases, employers generally must give notice or provide payment in lieu and follow internal procedures before terminating.

- Severance Pay - When termination is lawful but not attributable to the employee (for example redundancy), statutory severance generally applies. The usual method calculates severance as one month of average salary for each full year of service; partial years may be pro-rated under local practice. Where an employee’s recent average monthly salary exceeds a local cap, calculation may use a multiple of the local average monthly wage. Xiamen municipal rules and the Xiamen Human Resources and Social Security Bureau administer local standards used in calculation and caps.

- Special Protections - Certain groups enjoy stronger protections, including pregnant employees, employees on maternity leave, employee representatives and those injured at work. Terminations during protected periods are strictly limited and often void unless the employer obtains administrative approval.

- Mandatory Social Insurance and Provident Fund - Employers in Xiamen must contribute to social insurance schemes and the housing provident fund for employees. Failure to make contributions can affect disputes regarding lawful termination and increase employer liability.

- Dispute Resolution Process - Labor disputes in Xiamen typically proceed first to labor arbitration. Arbitration is usually a prerequisite to civil litigation over employment claims. There are statutory time-limits for filing arbitration claims, and the Xiamen labor arbitration committee handles local matters. Parties often resolve matters by negotiation or mediation prior to or during arbitration.

- Foreign Nationals - If the employee is a foreign national, additional rules apply on work permits, residence permits and notification obligations. Employers must handle visa and work-permit cancellations properly after termination and should consider immigration timelines when planning dismissal or settlement.

Frequently Asked Questions

Can my employer dismiss me in Xiamen without giving a reason?

No. Employers cannot arbitrarily dismiss employees. Except for immediate dismissal in cases of serious misconduct or criminal conviction, employers must have statutory grounds or reach a mutual agreement with the employee. Where employers terminate for economic or performance reasons, they must follow procedural requirements, give notice or pay in lieu and, where applicable, pay severance.

How is severance calculated in Xiamen?

Severance is generally calculated by reference to the employee’s average monthly salary multiplied by the number of years of service. Local practice may require pro-rating for partial years. For very short employment periods there are special rules. If an employee’s recent monthly salary exceeds a local cap, Xiamen’s authorities may require using a multiple of the local average monthly wage when calculating severance. Because local caps and local average wages change, consult a local lawyer or the Xiamen human resources authorities to confirm the current standard.

What are the rules for probation in Xiamen?

Probation is allowed but limited by contract duration under national law. Typical rules that apply in Xiamen are: no probation for contracts shorter than three months; up to one month for 3-12 month contracts; up to two months for 1-3 year contracts; and up to six months for contracts longer than three years or for open-ended contracts. Probation terms must be in the written labor contract and the employer must not dismiss solely for raising legitimate complaints during probation.

What should I do if I have not been paid my wages or severance?

Start by requesting a written explanation from the employer and gather evidence - pay slips, bank transfers, the labor contract, attendance records and social insurance records. If the employer does not remedy the situation, file a complaint with the local labor inspection authority and consider initiating labor arbitration within the statutory time limit. A lawyer can help calculate your claim and represent you at arbitration or in court.

How long do I have to file a labor arbitration claim in Xiamen?

Under national rules, employees generally have one year from the date their rights were violated to file a labor arbitration claim. Time limits and procedural details can be subject to local interpretation and exceptions, so seek advice promptly and preserve evidence.

Is arbitration required before going to court?

Yes. Labor arbitration is usually a mandatory first step in China, including Xiamen. You must file for arbitration with the local labor dispute arbitration committee before you can bring a civil lawsuit to a court. Some narrow exceptions apply, but you should plan on arbitration as the initial formal dispute-resolution path.

What happens if an employer fires an employee who is pregnant or on maternity leave?

Pregnant employees, employees on maternity leave and employees within certain protected periods enjoy special protection. Termination in those periods is heavily restricted and often invalid unless there is administrative approval for objective reasons like company closure. Employers who illegally terminate in these situations face higher risk of administrative penalties and ordered reinstatement or compensation.

How should an employer carry out a collective layoff in Xiamen?

Collective layoffs require transparent procedures. Employers should consult with employee representatives or the trade union, inform and consult local labor authorities where required, and follow statutory notice and severance requirements. Advance communication and documented justification reduce the risk of disputes. Employers should also check local Xiamen rules that may set additional procedural steps.

What special rules apply to foreign employees in Xiamen?

Foreign nationals employed in Xiamen need valid work permits and residence permits. Termination may have immigration consequences, and employers must follow administrative steps for work-permit cancellation and reporting. A termination could affect the foreign employee’s ability to remain in China, so coordinated handling of employment termination and immigration formalities is essential. Foreign employees should get legal advice that covers both labor and immigration law.

How long does a labor arbitration or court case usually take in Xiamen?

Labor arbitration in Xiamen often takes several weeks to a few months, depending on complexity and caseload. If a party brings litigation after arbitration, court proceedings can take many months or longer. Many disputes are settled by negotiation or mediation before final hearing. Timely legal advice and good preparation improve chances for faster resolution.

Additional Resources

Xiamen Municipal Human Resources and Social Security Bureau - enforces local labor standards, provides guidance on contracts, social insurance and severance calculations.

Xiamen Labor Dispute Arbitration Committee - the administrative body that handles first-instance labor dispute arbitration in the municipality.

Local People’s Courts - litigate employment disputes following arbitration when parties proceed to civil litigation.

Fujian Provincial Human Resources and Social Security Department - issues provincial rules and interprets national law for the province.

Xiamen trade union branches and the All-China Federation of Trade Unions local office - can provide collective representation, consultation and support for employees.

Legal aid centers and public legal service offices in Xiamen - offer free or low-cost legal assistance for eligible low-income claimants or meritorious cases.

Local labor inspection authorities - accept complaints about unpaid wages, social insurance noncompliance and illegal practices.

Next Steps

If you need legal assistance with hiring or firing matters in Xiamen follow these practical steps:

- Preserve evidence - keep your labor contract, pay records, social insurance statements, correspondence, termination letters and any internal performance records. Documentation is critical. - Request written reasons - ask the employer for a written explanation of the termination and any proposed settlement. Communicate in writing when possible. - Seek early advice - consult an experienced local labor lawyer who understands Xiamen practice, or seek assistance from legal aid if cost is an issue. For foreign nationals, choose counsel who can advise on both labor and immigration implications. - Consider negotiation - many disputes resolve through negotiation or mediation. A lawyer can help prepare a realistic demand and negotiate a settlement that addresses wages, severance, social insurance and visa issues. - File arbitration on time - if negotiation fails, prepare to file a labor arbitration claim promptly. Your lawyer will help gather evidence, draft the claim and represent you at hearings. - Prepare for litigation if needed - if arbitration does not resolve the dispute, you may proceed to the local court. Litigation is lengthier and may involve more detailed evidence and legal arguments. - Watch deadlines and formalities - miss a deadline and you may forfeit remedies. Follow formal notice and service requirements, and register immigration changes for foreign employees in a timely manner.

Hiring legal help early can save time, reduce risk and improve outcomes. If you are unsure which step to take, consult a qualified Xiamen labor lawyer or the municipal human resources and social security bureau for guidance on how the local rules apply to your situation.

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Disclaimer:
The information provided on this page is for general informational purposes only and does not constitute legal advice. While we strive to ensure the accuracy and relevance of the content, legal information may change over time, and interpretations of the law can vary. You should always consult with a qualified legal professional for advice specific to your situation. We disclaim all liability for actions taken or not taken based on the content of this page. If you believe any information is incorrect or outdated, please contact us, and we will review and update it where appropriate.