How Di Bella Coffee Navigated Employee Termination Compliance with HROne
From a high-risk termination scenario to a compliant resolution — avoiding disputes under China labor law.
Industry
Food & Beverage
Region
China (Shanghai)
Company Size
SME
HROne Services Used
• Employer of Record (EOR)
• HR Compliance
• HR Compliance
THE CHALLENGE
Risky termination under China labor law
A food and beverage company in China wanted to terminate an employee who was absent from work for one day without notice. The client planned to proceed with immediate termination.
However, under China labor law, this situation does not justify instant dismissal. Acting without proper procedure could expose the company to labor disputes, compensation claims, and legal risks.
However, under China labor law, this situation does not justify instant dismissal. Acting without proper procedure could expose the company to labor disputes, compensation claims, and legal risks.
THE SOUTION
Guiding a compliant termination process
HROne advised the client to first establish contact with the employee through multiple channels to understand the situation. This step helped ensure that no exceptional circumstances were involved before taking further action.
Once communication was restored, HROne supported both parties in negotiating a mutual termination and prepared a compliant termination agreement, ensuring the process aligned with local labor regulations.
Once communication was restored, HROne supported both parties in negotiating a mutual termination and prepared a compliant termination agreement, ensuring the process aligned with local labor regulations.
THE RESULTS
Dispute avoided and compliance ensured
With HROne’s guidance, the company avoided an improper termination that could have led to a labor dispute.
The employment relationship was concluded through a compliant agreement, reducing legal exposure and saving the company significant time and cost associated with potential claims or arbitration.
The employment relationship was concluded through a compliant agreement, reducing legal exposure and saving the company significant time and cost associated with potential claims or arbitration.
THE KEY OUTCOMES
• Avoided non-compliant termination risk
• Prevented potential labor dispute
• Achieved compliant termination agreement
• Reduced legal and financial exposure
• Prevented potential labor dispute
• Achieved compliant termination agreement
• Reduced legal and financial exposure
“We were unsure how to handle the situation without creating legal risk. HROne guided us through the right process and helped us reach a compliant resolution smoothly.”
CFO
Di Bella Coffee
DISCLAIMER
This case study reflects a specific employee termination situation handled in China.
Termination procedures, severance obligations, employee communication requirements, and dispute risks may vary depending on the city, employment contract, company policy, reason for termination, and case facts.
This content should not be treated as general legal advice or a universal termination approach for all China employment cases.
Termination procedures, severance obligations, employee communication requirements, and dispute risks may vary depending on the city, employment contract, company policy, reason for termination, and case facts.
This content should not be treated as general legal advice or a universal termination approach for all China employment cases.
