Someone on your China team broke the rules. What now? Knowing exactly how to handle disciplinary action in China saves you time, stress and potential legal headaches.
If It’s Not in Your Handbook, It Doesn’t Count
If you want to discipline or fire someone, the reason must be clearly listed in your employee handbook. No exceptions. If it’s not in there, you have no legal ground to act.
For example, if your employee is late and your handbook doesn’t say that’s a problem, there’s not much you can do. You’ll need to add that rule and only start enforcing it from the day you publish the updated handbook.
Your handbook should spell out, in plain language, what counts as misconduct. A good way to do this is to clearly split violations into “minor” and “major” in your handbook, and spell out the consequences for each. These rules need to be written in Chinese to have any legal standing.
Get Proof of Receipt: Give every employee a copy of your handbook and get proof they received it. Have them sign a receipt form in Chinese. This is your evidence if there’s ever a dispute.
What Counts as a Violation?
Start by listing out all possible violations in your company handbook. This needs careful thought, as what counts as a violation can be different for each industry or business.
Major violations (think: theft, leaking secrets, or serious rule-breaking) can mean immediate termination without compensation.
For minor issues, like being late or dress code problems, clearly outline your disciplinary steps, such as verbal warning, written warning, and then termination if it happens again. We’ll cover those steps next.
Minor Violations
Examples include:
- Being late or leaving early without approval
- Unapproved short absences (less than 4 hours)
- Dress code violations
- Minor breaches of company policy
Major Violations
Examples include:
- Theft or fraud
- Leaking confidential company information
- Bribery or corruption
- Serious safety violations
- Harassment or discrimination
- Conflict of interest not reported
And before you get any ideas: no, you can’t just call anything a “major violation” because you’re feeling strict that day. Chinese law says punishments must fit the crime. If you try to fire someone for wearing the wrong socks and call it a “serious breach,” the courts won’t back you up.
Stick to what’s fair, reasonable, and actually serious, otherwise, you risk losing in court and paying compensation.
Detail your Disciplinary Process
Once you’ve listed the rules, you need to spell out exactly what happens if someone breaks them. Document every step. If you end up firing someone, they might claim they were never disciplined — so keep records of each stage.
Here’s a sample process:
| Step | Description |
|---|---|
| A. Verbal Warning | Supervisor gives a verbal warning for minor issues. (Record the date and details) |
| B. Written Warning | Formal written warning, recorded and filed. (Have the employee sign to confirm receipt) |
| C. Final Warning | Final written warning, also recorded. (Again, get a signed record) |
| D. Termination | Letter of termination, recorded and filed. |
Quick Pro Tips
- Follow your own process – Stick to the disciplinary steps and appeal process written in your handbook. If you skip a step or don’t follow your own rules, you could lose in a dispute
- Document everything – Always keep written records of every warning or disciplinary step, even for minor issues. Have employees sign to confirm they received each notice.
- Open communication matters – Give employees a real chance to ask questions or comment on your rules. Address their concerns and explain anything that’s unclear.
