Unilateral Terminations in Beijing to Require Advanced Union Notice; Tianjin Already Imposes Requirement

Beijing and Tianjin will require employers to provide five days’ prior notice to trade unions of the intent to terminate an employment contract unilaterally under any circumstance.

The Labor Contract Law of the People’s Republic of China (LCL)—which first came into effect on January 1, 2008 and has since been amended on December 28, 2012, with effect from July 1, 2013—aimed, in part, to strengthen the influence and prevalence of the All-China Federation of Trade Unions (ACFTU) in the operations of all companies in China. Article 42 of the LCL requires that employers provide advance notice to the trade union of the intention to terminate an employee’s employment contract unilaterally.

This provision has not been widely enforced, and what constituted prior notice was never defined. Many companies declined to provide advance notice to the trade union or might transmit the notice only minutes prior to a termination discussion to satisfy this statutory requirement. Companies that do not have an internal trade union often omit the step of notifying the trade union in advance of initiating a termination.

BEIJING MEASURES

On March 27, 2026, the Standing Committee of Beijing Municipal People’s Congress issued the Measures of Beijing Municipality for the Implementation of the Trade Union Law of the People’s Republic of China (the Beijing Measures). The Beijing Measures take effect from May 1, 2026 and effectively require union review of all decisions to impose discipline or to terminate an employment relationship summarily.

Article 20 of the Beijing Measures provides that

• when an employer imposes disciplinary actions against an employee, the trade union has the right to raise opinions if it considers such disciplinary actions inappropriate, and the employer must review and examine the opinions of the trade union and respond in writing;
• if an employer intends to unilaterally terminate an employee’s employment contract, it must notify the competent trade union (i.e., the company’s trade union or the higher-level trade union if the company does not have a trade union) at least five working days in advance, explaining the reasons; and
• if the trade union believes the termination violates the laws or regulations or contract, it can issue a corrective opinion or suggestions—if the trade union requests the employer to reconsider the decision, the employer must review the trade union’s position and provide a written response with the outcome.

The new notification requirement applies to all grounds for unilateral termination, including major changes in objective circumstances, incompetence, and serious misconduct. Critically, although the employer must notify the union at least five working days before the termination date, it does not need to wait for a response or approval from the competent trade union before proceeding with the termination.

TIANJIN DEVELOPMENT

On March 4, 2026, Tianjin authorities—including the Municipal Federation of Trade Unions, the High People’s Court, and the Human Resources and Social Security Bureau—jointly issued the Guidelines on Regulating Employers’ Unilateral Termination of Employment Contracts with immediate effect. These guidelines similarly require employers to notify the trade union at least five working days in advance of a decision to terminate an employment relationship unilaterally. The trade union has the express authority to supervise termination decisions. If it considers a termination inappropriate, it may issue a written opinion requiring the employer to make corrections, and the employer must review these opinions and provide a written response.

IMPLICATIONS AND RECOMMENDATIONS FOR EMPLOYERS

First, employers in Beijing and Tianjin, or with employees working remotely in either municipality, need to follow the respective notification requirements. Failure to comply and provide the requisite prior notice may lead to a labor arbitration commission or court in Beijing voiding a disciplinary action, if challenged, or in Beijing or Tianjin deeming a termination procedurally unlawful and directing the employee to be reinstated with full backpay.

Second, employers in Beijing and Tianjin, or with employees working remotely in either municipality, need to factor in the notification requirement in connection with a proposed termination for serious misconduct. Companies will need to plan carefully to protect company personnel and assets, depending on the type of misconduct at issue, because summary termination is no longer a viable or legally compliant option.

Third, employers in Beijing and Tianjin, or with employees working remotely in either municipality, need to plan and factor in the notification requirement into the timing for negotiating a mutual agreement to termination. If the parties cannot reach a mutual agreement, the employer can no longer issue a notice of termination with immediate effect and must build in the five-day notice requirement in the negotiation timeline.