If you are a foreign employee facing an employment dispute in China, the first step is to identify the nature of the dispute and preserve relevant evidence. Common disputes include wrongful termination, unpaid salary, overtime pay, severance, breach of the employment contract, and work-permit-related issues.

1. Review Your Employment Documents

Check your employment contract, salary records, company policies, termination notice, and other relevant documents. Pay particular attention to the agreed position, salary, contract term, probation period, working hours, termination provisions, and any dispute-resolution clauses.

2. Collect and Preserve Evidence

Keep payslips, bank records, emails, WeChat messages, work schedules, attendance records, performance evaluations, and communications with your employer. These materials may be important in labor arbitration or court proceedings.

3. Communicate with Your Employer

Some employment disputes can be resolved through negotiation, particularly disputes concerning unpaid wages, severance, or termination compensation. Before signing any termination agreement, settlement agreement, or release, carefully review its terms and potential legal consequences.

4. File for Labor Arbitration

If negotiation fails, an employee can generally file a claim with the competent Labor Dispute Arbitration Commission. For most employment disputes in China, labor arbitration is the mandatory first step before bringing the dispute to court.

5. Consider Court Proceedings

If a party is dissatisfied with a labor arbitration award, a lawsuit may generally be filed with the competent People's Court, subject to applicable legal rules and exceptions.

Special Considerations for Foreign Employees

Foreign employees should also pay particular attention to their work permit, residence permit, employment contract, and immigration status. Termination of employment may have consequences beyond the labor dispute itself, including the need to deal with the cancellation or change of work-related immigration documents.

The applicable rules may depend on where you work, the terms of your employment contract, the circumstances of termination, and the evidence available.

Practical Tip

If you are a foreign employee facing termination, unpaid salary, or another employment dispute in China, it is advisable to obtain legal advice before signing a termination agreement or settlement. Depending on the circumstances, signing certain documents may affect your ability to pursue subsequent claims.