Does the employer have to pay compensation/indemnity for unlawful termination of labor contract?

2023-08-15
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Take Shanghai as an example: (1) If there is an agreement between the two parties on illegal termination of employment, the agreement shall apply; if there is no agreement or the agreement is unclear, it is generally difficult to support the foreign worker's claim for compensation for illegal termination of employment; (2) Given that the enterprise has the right to cancel the work permit unilaterally, making it impossible for the foreign worker to be legally employed, it is generally difficult to support the foreign worker's claim for reinstatement of the labor relationship; (3) Notwithstanding the above, the Shanghai High Court's opinion tends to hold that "with reference to the relevant provisions of the Contract Law on the termination of the contract by one party due to serious breach of contract, the other party shall be compensated for the actual loss caused by the breach, if the employer terminates the labor contract in breach of contract, but the labor contract does not stipulate the legal consequences of the termination in breach of contract, the foreign worker's request for compensation for the actual loss shall be supported. " Thus breaking the provisions of the labor law.
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