Customized Severance Agreement

Customized drafting service of a Severance Agreement in both English and Chinese versions, prepared by a vetted experienced lawyer

US $2,360

Customized Bilingual Agreement

A vetted, experienced English-speaking lawyer in China will draft a severance agreement for you (in both English and Chinese languages).

It clarifies the terms of separation, including severance pay, legal claims release, and confidentiality provisions. It provides a clear understanding of expectations for both employer and employee, reducing the risk of future disputes.

Receive in 5 Business Days

The first draft of the agreement will be delivered to your Trustiics dashboard in 5 business days once you’ve provided all the necessary information.

What do you need to do?

When you place the order, you will be asked to complete a form to provide the necessary information or the lawyer to draft the contract, including the parties’ names and related information, the Chinese city where the agreement will be used, the last day of employment, severance pay arrangement, company property to be returned, non-compete agreement, etc.

What’s included
How it works
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Select

Select service & fill out the information form

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Authorize payment

Authorize payment by credit card & multiple pre-vetted lawyers are notified

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Service in progress

The first responding lawyer gets the job and starts to work. Online chat becomes available

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Job completed

The lawyer delivers the work for the client’s review. Credit card is charged upon acceptance

Service Experts

One of the following vetted lawyers who responds to your request first will get the assignment and provide the service for you

Beijing, China
stars
5/5
Youping Deng
15+ years of experience
Subject Expertise
  • Dispute Resolution
  • Arbitration
  • Litigation
  • Corporate
  • Employment Law
  • Brand Protection
Shanghai, China
stars
5/5
Emilia Shi
20+ years of experience
Subject Expertise
  • Corporate
  • Foreign Direct Investment
  • Dispute Resolution
  • Regulatory Compliance
  • Mergers and Acquisitions
  • Legal Audit and Investigations
Beijing, China
stars
5/5
Sylvia Zhang
15+ years of experience
Subject Expertise
  • Foreign Direct Investment
  • Corporate
  • Commercial Contracts
  • Legal Due Diligence
  • Regulatory Compliance
  • International Trade

Legal Q&A

Why is it important to sign a legally binding Severance Agreement with departing employees in China?

There is no “at-will employment” in China. Improper termination of employment contracts often results in disputes and sometimes wrongful termination compensations.

Employment arbitration in China is time-consuming and likely to result in favor of employees rather than the business. Therefore, should terminations arise, it is prudent for companies to have written agreements that comply with local regulatory requirements and avoid labor disputes.

An agreement prepared by an experienced lawyer assures compliance with the local employment regulations, which usually can be very complicated. It also clarifies the rights and obligations of both the employer and the employee so that the employee will not sue the employer.

What are the typical situations where business executives need a customized severance agreement?

When you run into the following situations, the Trustiics service of customized drafting of a severance agreement will come in handy for you.

  • the company plans to close a subsidiary in China and, as a result, needs to lay off local employees;
  • the company plans to terminate the employment contract of one or multiple individual employees in China;
  • one or multiple employees in China resign;
  • any other situation where the employee is subject to certain statutory rights or there is potential litigation or reputational harm; or
  • you are a lawyer advising a client that is closing its China business and laying off local employees.

Is an Employee Termination and Severance Agreement the same as a Severance Agreement?

Yes, they are the same.

Will “severance pay” be covered by the Severance Agreement?

Yes. “Severance pay” refers to the financial compensation to be received by the terminated employee and how it is calculated; these are important clauses to be included in a Severance Agreement.

Can't I just use a Chinese translation version of our standard Severance Agreement in the U.S.?

No. The reason is that each country has its own employment law, you will need to use China-law governed Severance Agreement when you terminate employees in China.

Can I use this Severance Agreement to lay off employees in different regions in China?

Yes, you can use the same Severance Agreement to lay off or terminate employees in different regions in China. However, it is strongly suggested to inform the service lawyer to be aware of each city or province where you will dismiss employees. The reason is that the lawyer will take specific local employment regulations into consideration if they vary when drafting the agreement for you.

Why do I need a lawyer to draft the Severance Agreement instead of Googling a template?

There are two significant benefits to engaging an experienced lawyer qualified in China to draft the Severance Agreement:

(1) Validity and Enforceability: A customized Severance Agreement prepared by a locally qualified lawyer will ensure it is valid and complies with local employment law (such as restrictions on non-compete arrangements). It will therefore be legally binding and enforceable, even if a signing party changes his mind in the future; and

(2) Regulatory Compliance: The agreement will be up to date and reflect any recent changes in employment rules and regulations, and therefore satisfy all your internal and external compliance requirements.

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