If the employer dismisses you citing post-illness inability to work, incompetence, or major change of circumstances, and did not give 30 days’ prior notice, it must also pay one extra month’s wage
UpdatedGrade AMedium benefitMoneyFreeLittle timeNo willpower
If the employer dismisses you because you cannot work after illness, cannot perform the job, or circumstances changed substantially, it must give 30 days’ written notice. Without notice, it must pay one month’s wage on top of N. That is the common N+1. In negotiation, list that month separately; do not let the employer fold it into N.
- Cost
- No cost.
- Benefit
- The Labor Contract Law gives employers two options when terminating under this article. One is “notify the worker in writing thirty days in advance.” The other is “may terminate the labor contract after paying the worker one additional month’s wage.” If they want you out immediately, they pay an extra month. That extra month is commonly called payment in lieu of notice (代通知金), counted separately from N. That month is based on your prior month’s wage; N uses average wage over the 12 months before termination—the bases differ
- Notes
- The extra month appears only in the three situations under Article 40 of the Labor Contract Law. Illness or non-work injury and, after the medical period, inability to do the original or reassigned work. Inability to perform after training or reassignment. Major change in objective circumstances at signing and failed negotiation. Other situations have no extra month. Economic layoffs (Article 41) require only 30 days’ notice to the union or all employees. Mutual termination proposed by the employer is N. Serious misconduct termination by the employer has no compensation. Unlawful termination is 2N. For the Article 40 three cases, keep N and the extra 1 separate in negotiation; do not let the employer count the extra month as part of N
Sources · 2
- 全国人大常委会 (2007). 中华人民共和国劳动合同法（2008 年 1 月 1 日施行）（第三十六、三十九、四十、四十一、四十六、四十七、八十七条）. gov.cn/gongbao/content/2007/content_711013.htm
- 国务院 (2008). 劳动合同法实施条例（国务院令第 535 号）第二十条：「用人单位依照劳动合同法第四十条的规定，选择额外支付劳动者一个月工资解除劳动合同的，其额外支付的工资应当按照该劳动者上一个月的工资标准确定」. gov.cn/gongbao/content/2008/content_1107604.htm