Wang Songjiang, a local labor expert, said Citizen violated labor laws and regulations and rules when it suddenly dismissed its workers, despite informing the labor department in advance.

"The employers still have to inform the workers at least one month ahead, if they want to dismiss more than 20 employees at a time, so that the workers have enough time to seek other employment opportunities or receive special training. Otherwise, they will have broken laws, regulations and rules," he said.

Tian Dangsheng, a lawyer from Guangzhou's Greenleaf Law Firm, said: "Citizen's compensation plan is acceptable and meets the country's standards for compensating workers who are dismissed, and I do not think workers can seek more if they sue and win in court," he said.

Established in 2010 in Huadu district, Citizen once employed 1,042 workers.