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Can My Chinese Employer Charge a Resignation Penalty? (¥20,000 to Quit?)

Generally no. Under Article 25 of the Labor Contract Law, employers can only agree penalty clauses with employees in two situations: breach of a valid non-compete (with compensation paid) or breach of a training service agreement. A blanket 'pay ¥20,000 if you quit' clause is unenforceable.

The scare tactic

Many contracts include a big resignation penalty to intimidate teachers into staying. It's rarely enforceable, but schools may still deduct it from your final salary, forcing you into arbitration to recover.

What to do

Before signing, ask to delete the clause. If already signed and you're resigning, give proper 30 days' notice in writing, and if they deduct a 'penalty,' file for labor arbitration — the employer must prove actual losses.

Training agreement exception

If the school paid for a flight, visa or a genuinely expensive training program with a written service agreement, a proportional penalty may be valid. Read that agreement carefully.

Key facts / law

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