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Firing Staff in Shanghai? How to Avoid Legal Trouble

When “Letting Go” Becomes a Lawsuit Waiting to Happen It was just another Monday morning in Shanghai—until the HR manager got the call. The foreign-owned tech startup had let go of two employees for poor performance. No written warnings. No severance offer. Just an email: “Your last day is today.” Three days later, both employees filed labor arbitration claims. Total demand? Over ¥180,000 in back wages, double pay for improper termination, and emotional distress damages. ...

2025-12-17 · 3 min · 2120 words · JingJing