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This is a Chinese Law question. Fact: Jenny has worked as a full-time salesperso

ID: 353345 • Letter: T

Question

This is a Chinese Law question.

Fact:

Jenny has worked as a full-time salesperson in Monica’s boutique for 6 years. One day, Roland, a customer who always buys expensive clothing from the boutique, visited the boutique together with Tin Yan, his seven-year-old son. Roland allowed Tin Yan to play in the boutique on Tin Yan’s own while he (Roland) selected clothing. Jenny did not notice her way carefully when she walked in the boutique and knocked Tin Yan on the ground. Luckily, Tin Yan did not suffer any injury. Notwithstanding so, Roland scolded Jenny severely and demanded her to apologize. Feeling humiliated, Jenny refused to apologize to Roland. Worrying that Roland may not buy clothing from the boutique anymore, Monica apologized to Roland and later dismissed Jenny without paying her any compensation.

Meanwhile, Diana, who has worked as a full-time fashion designer for Monica for 7 years, considered resigning from the boutique. Her employment contract stated that she could no longer work as a fashion designer for any other party in the city where Monica’s boutique is situated at once she (Diana) resigns from the boutique. There is no compensation for Diana also in this situation as said in the contract.

Require:

Discuss the legal position of Jenny and that of Diana.

Explanation / Answer

In this situation if we look at the case of Jenny we can see that as she is a full time salesperson, Monica cannot terminate her without compensation because in China employment is based on a written contract and the employer and the employee both has to abide by that, hence Jenny cannot be terminated at will and Monica has to compensate her based on the regulations mentioned in the contract. If there is any violation Monica may have to face legal proceedings against her.

In the case of Diana the terms are as per the contract and she needs to abide by the contract. According to the contract she cannot work as a fashion designer in the same city and if she resigns she also wont be compensated, therefore Diana needs to look for employment opportunities outside the city or she can continue in the city but in a different role which is different from that of a fashion designer.

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