As prescribed by labour law, Employees under indefinite LCs may unilaterally terminate LCs in any event provided that they must notify Employers at least 45 days in advance[1]. Therefore, regardless of whether Employers agree with the Employees’ request or not, indefinite LCs will terminate upon expiry of the prior notification period of 45 days. However,…

Employers’ responsibilities upon termination of LCs Labour law prescribes the Employers’ and Employees’ responsibilities upon termination of LCs as follows[1]: Within 7 working days from the LC termination date, the two parties must fully pay all the amounts related to the rights and interests of each party. The time limit for payment may be extended…

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…