Upon agreeing to terminate LCs before the term expiry, how shall Employers fulfil their financial obligations to Employees? Under the labour law, Employers and Employees may agree on the termination of LCs[1]. Actually, when LCs are terminated, Employers and Employees will sign an agreement on terminating LC, which specifies the financial obligations Employers fulfil to…

Under the labour law, if an LC expires and the two parties wish to sign another LC as the definite one, they are only allowed to do this one time. After that, if an Employee continues to work, a definite LC must be signed[1]. Apart from the aforesaid provisions, the labour law has no further…

As for the extension of an LC in form of an appendix, the labour law as well as the relevant guiding documents has been not yet specified. Instead, the law only regulates the amendment of the LC term in form of an appendix instead of signing a new LC. Therefore, in practice, in order to…

Beside the type of definite term LC and indefinite LC, the seasonal or specific job-based LC is another type the labour law allows Employers and Employees to enter into to perform the seasonal, temporary jobs with a term of less than 12 months[1]. However, for regular jobs of a term of 12 months or more,…

Employers’ responsibilities upon termination of LCs and the legal consequences in the event of violation Employers’ responsibilities upon termination of LCs Upon termination of definite-term LCs, Employers are obliged to notify Employees in writing of the termination date of LCs at least 15 days prior to this termination[1]. In addition, within 7 working days from…