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Corporate Social Responsibilities



Content provided by : China Center for Labor and Environment
1 May 2009
Enterprises May Claim for Losses for Contract Dissolution by Employee in Breach of Trust

Jiangsu High People's Court put forward guiding opinions on the current labor dispute cases, prescribing that an employee who dissolves labor contract ahead of schedule will not bear liabilities for breaching the contract, unless a service period is stipulated in advance; but if the employee dissolves the labor contract prior to the expiration of the contract or completion of the stipulated assignments, in violation of the principle of good faith, which causes losses to the company, the court should support the employer's claim for the direct economic losses.

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