Labor & Employment

Fangda has in-depth experience of assisting business to navigate the challenging and constantly evolving employment laws, regulation and practice at different administrative and locality levels in China. We deliver sound, practical and commercially focused advice.

Our highly regarded employment lawyers have extensive knowledge of employment law and practice in China as well as finely honed understanding of our clients’ business requirements when it comes to all employment and labor issues.

We have considerable experience of advising both international and Chinese clients on their employment and labor requirements, and a proven track record of helping them establish effective employment practices and procedures.

We frequently work with firms in other jurisdictions to serve clients on matters involving a cross-border element, including collaborating with member firms of Ius Laboris, a global network of employment lawyers.

Recognition

  • Labor and Employment: PRC firms – Tier 2
    The Legal 500 Asia Pacific 2017, 2018, 2019 and 2020
  • Employment (PRC Firms) – Band 3
    Chambers Asia-Pacific 2017, 2018, 2019 and 2020
  • Labor & Employment – Recommended
    Asialaw Profiles 2019, 2020

Notable Matters

Labor & Employment

Counseling

We advise clients in different industries (including Hilton, LinkedIn, Ametek, NYU Shanghai, Philips, Bruker, Marriott, Hempel, and BeiGene) on a broad range of employment law issues they encounter in their day-to-day HR management. Among those issues are hiring, sickness, work injuries, occupational diseases, statutory benefits, disciplinary action, demotion, salary reduction and termination.

Compliance Planning and Policies

We assist clients to prepare HR-related documents, including employee handbooks, codes of ethics/conduct, offer letters, confidentiality and non-competition agreements, employee invention policies, short- and long-term incentive plans and programs (S/LTIPs), and share-based incentive plans and programs (ESOPs). This includes advising:

  • A U.S.-based medical appliance company on the localization of its ESOP to incentivize its local management team in China.
  • A U.S.-based leading provider of advanced, high-performance process control metrology and inspection systems in drafting a long-term incentive plan for its China management team.
  • A U.S.-based consulting company in changing its incentive plan for its management team in China.
Labor Arbitration and Litigation

We represent clients in labor arbitration and/or litigation in a broad range of employment disputes, including compensation/incentives, non-compete clauses, trade secrets, de facto employment, disciplinary actions and dismissal, in different cities in China. These include representing:

  • A large U.S. retail company’s China affiliates in six labor dispute arbitration and litigation cases initiated by former employees dismissed on grounds of gross misconduct.
  • A photovoltaic manufacturing company in 11 labor dispute arbitration and litigation cases initiated by its former employees over their compensation, winning all the cases on behalf of our client.
  • A U.S.-based investment company in an ESOP dispute case involving its former Chinese CEO in Shanghai, where the amount in dispute was more than US$1.8 million.
  • A U.S.-based chemical company in a labor dispute arbitration and litigation case against its former marketing manager for breach of non-compete clause.
Transactional Labor Law Support and Layoffs

We advise clients on the transfer or layoff of employees in the context of commercial transactions and corporate activities, such as M&A, relocation, restructuring and dissolution/liquidation, and also help clients implement the transfer or layoff in different cities in China. This includes advising:

  • A U.S. industrial company on its layoff of more than 1,000 employees arising from liquidation and closure of one of its local entities in Shanghai. Our advice included preparing all documents, developing a negotiation strategy and action plan, and handling the negotiation.
  • A European coffee maker on its layoff of more than 150 employees when it closed its business in Guangzhou. We helped our client to prepare all legal documents, develop communication and action plans, communicate with authorities, and conduct the face-to-face meeting with employees.
  • A British retailer on its layoff of more than 300 employees in five Chinese cities as a result of store closures. We helped our client prepare all legal documents, develop communication and action plans, and negotiate with employees, not all of whom cooperated.
  • A European electronics producer on its layoff of more than 80 employees in one of its China factories. We helped our client to prepare the legal documents, and communicate with the local labor authority.
Mobility and Immigration

We advise clients on issues relating to mobility and immigration issues, such as secondment, Z Visas, work permits and residence permits.