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Q&A
What are some of the steps required to settle labor issues when a company wishes to close its business in China?
What are some of the steps required to settle labor issues when a company wishes to close its business in China?
When a company de-registers and closes its operations, current labor contracts will be automatically terminated and affected employees will be entitled to the severance payment. In order for foreign companies to legally de-register, they need to submit an employee settlement plan to the relevant labor bureaus that clearly details how employees that are laid off will be compensated.
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