Article 42 The employing unit may not revoke the labor contract concluded with the worker, who is under one of the following circumstances, by applying the provisions in Articles 40 and 41 of this Law:

(1) Being engaged in operations exposed to occupational disease hazards, the worker is not given pre-departure occupational health examinations, or being suspected of an occupational disease, is in the process of being diagnosed or is under medical observation;

(2) Having contracted an occupational disease or being injured at work, the work is confirmed to have totally or partially lost the ability to work;

(3) The worker is in the prescribed period of medical treatment for illness, or for injury incurred when not at work, and;

(4) The worker is during the pregnant, puerperal or breast-feeding stage;

(5) The worker has been working for the employing unit continuously for 15 years in full and is less than 5 years away from the statutory retirement age; or

(6) The worker is in any other circumstances as provided for by laws or administrative regulations.

Article 43 Where an employing unit intends to revoke a labor contract unilaterally, it shall notify the trade union of the reasons in advance. If the employing unit violates the provisions of laws or administrative regulations or the labor contracts, the trade union shall have the right to demand that the employing unit put it right. The employing unit shall consider the trade union’s opinion and notify the trade union in writing of the settlement of the matter.

Article 44 A labor contract shall be terminated under one of the following circumstances:

(1) The term of the contract expires;

(2) The worker concerned begins to enjoy the benefits of the basic old-age insurance pension in accordance with law;

(3) The worker concerned dies, or is declared dead or missing by the people’s court;

(4) The employing unit is declared bankrupt in accordance with law;

(5) The business license of the employing unit is revoked, the employing unit is ordered to close down or to dissolve, or it decides to dissolve on an earlier date; or

(6) any other circumstances provided for by laws and administrative regulations.

Article 45 At the expiration of a labor contract, under one of the circumstances prescribed in Article 42 of this Law, the term of the labor contract shall be extended until the necessary conditions cease to exist. However, the termination of a labor contract with a worker who has totally or partially lost the ability to work, as specified in Subparagraph (2) of Article 42 of this Law shall be handled in accordance with the regulations of the State governing insurance for work-related injury.

Article 46 The employing unit shall pay financial compensation to a worker under one of the following circumstances:

(1) The worker revokes the labor contract pursuant to the provisions in Article 38 of this Law;

(2) The employing unit proposes revocation of the labor contract to the worker pursuant to the provisions in Article 36 of this Law and the parties reach an agreement thereon through consultation;

(3) The employing unit revokes the labor contract pursuant to the provisions in Article 40 of this Law;

(4) The employing unit revokes the labor contract pursuant to the provisions in the first paragraph of Article 41 of this Law;

(5) The fixed-term labor contract is terminated pursuant to the provisions in Subparagraph (1) of Article 44 of this Law, except that the worker does not agree to renew the contract even though the employing unit maintains the same conditions as, or offers better conditions than, the ones stipulated in the previous contract;

(6) The labor contract is terminated pursuant to the provisions of Subparagraph (4) or (5) of Article 44 of this Law; or

(7) Under any other circumstances provided for by laws or administrative regulations.

Article 47 Financial compensation shall be paid on the basis of the number of years a person works in a unit, the rate being one month’s salary for the work of one full year. If he has worked for six months or more but less than one year, the time shall be calculated as one year; and if he has worked for less than six months, he shall be paid half of his monthly salary as financial compensation.

If the monthly salary of a worker is three times the average monthly salary of the workers of the region for the previous year, which is published by the people’s government of the municipality directly under the Central Government or by that of the city divided into districts where the employing unit is located, the rate for his financial compensation payable shall be three times the average monthly salary of the workers, and the number of years involved shall not exceed 12 years.

For the purposes of this Article, the monthly salary means the average of a given worker’s monthly salary for the 12 months prior to the revocation or termination of the labor contract.