By You Yunting
A subscriber of our website asked that what the company shall reply when the employee hand in his/her resignation for the inconvenience occurred from relocation of the office and as for the employee’s claim of compensation.
We reply as follows: Obviously, it could come to the employee’s consideration that the relocation of the office is the statutory situation of “A major change in the objective circumstances relied upon at the time of conclusion of the employment contract renders it unperformable”, and it is also resulted by the employer, and for this reason, they would claim an extra one month salary and compensation.
Legal basis: Article 40 of the Labor Contract Law:
“An Employer may terminate an employment contract by giving the Employee himself 30 days’ prior written notice, or one month’s wage in lieu of notice, if a major change in the objective circumstances relied upon at the time of conclusion of the employment contract renders it unperformable and, after consultations, the Employer and Employee are unable to reach agreement on amending the employment contract.”
Article 46 of the Labor Contract Law:
“In any of the following circumstances, the Employer shall pay the Employee severance pay…
(3) The employment contract is terminated by the Employer pursuant to Article 40 hereof;”
In practices, many employees choose not to continue their service in the moved office, and for that the employer shall pay them the compensation, but by our experiences and confirm with the labor and social insurance department, the labor arbitration committee would check the possibility of the continuous performance of the labor contract, so as to judge the whether the labor contract shall be restored.
(1) For the relocation within the urban area of the same city, the labor contract could be performed in continuation;
(2) For the move from the urban area to the outskirt, once the employer has a make-up plan like a shuttle, normally the labor contact to could be deemed as feasible for continuous performance; yet once no such plans or schemes, the labor contract is of no ground to be continued;
(3) For the relocation from a outskirt district to another rural area in the same city, and no commute transportation is arranged, the labor contract is considered to be in-performable;
(4) For the cross-province reallocation, the labor contract shall be judged of no feasibility to be performed.
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You Yunting
86-21-52134918
youyunting@debund.com, yytbest@gmail.com
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