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Labor Law of the People's Republic of China

Article 27 During the period of statutory consolidation when the employing unit comes to the brink of bankruptcy or runs deep into difficulties in production and management, and if reduction of its personnel becomes really necessary, the unit may make such reduction after it has explained the situation to the trade union or all of its staff and workers 30 days in advance, solicited opinions from them and reported to the labour administrative department.

Where the employing unit is to recruit personnel six months after the personnel reduction effected according to the stipulations of this Article, the reduced personnel shall have the priority to be re-employed.

Article 28 The employing unit shall make economic compensations in accordance with the relevant provisions of the State if it revokes its labour contracts according to the stipulations in Article 24, Article 26, and Article 27 of this Law.

Article 29 The employing unit shall not revoke its labour contract with a labourer in accordance with the stipulations in Article 26 and Article 27 of this Law in any of the following circumstances:

to be confirmed to have totally or partially lost the ability to work due to occupational diseases or injuries suffered at work; 
to be receiving medical treatment for diseases or injuries within the prescribed period of time; 
to be a female staff member or worker during pregnant, puerperal, or breast-feeding period; or 
other circumstances stipulated by laws, administrative rules and regulations. 
Article 30 The trade union of an employing unit shall have the right to air its opinions if it regards as inappropriate the revocation of a labour contract by the unit. If the employing unit violates laws, rules and regulations or labour contracts, the trade union shall have the right to request for reconsideration. Where the labourer applies for arbitration or brings in a lawsuit, the trade union shall render him support and assistance in accordance with the law.

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