Termination Of Employment Contract Subject To The “Significant Change Of Objective Conditions”

The Subparagraph 3,Article 40 of the Employment Contract Law of PRC provides the termination of employment contract subject to the “significant change of objective conditions”(hereinafter referred to as “this system”),as component of termination without fault.This system aims to,where the objective basis of employment contract lost,re-coordinate the benefits between employer and employee,and;where the new balance of benefits cannot be formulated,entitle employer to unilaterally terminate the employment contract.However,the “significant change of objective conditions” is lack of judging standards,which obstacles its unification in judicial practice.The first part of this paper presents the lawmaking evolution of this system,concretely,divides the period of lawmaking into “period of Employment Law” and “period of Employment Contract Law”,and;makes detailed research on the changes of this system from the perspective of state and place level respectively,and;compares this system with the causes of economic layoffs.Based on relevant jurisprudence theory,the second part discusses the high similarity between this system,which is the reflection of the “change of situation” in employment contract,and the “change of situation” in civil contract.Later,combining with the particularity of employment contract,this part proposes that its meaning has been enlarged in employment contract,as a result,it is not equivalent to the “change of situation” and its interpretation cannot copy the “change of situation”.The third part is regarding the detailed meaning of this system in current market.It summarizes relevant judging experience of the courts in PRC,and analyzes the comprehension and judging standards of the judges regarding the “objective conditions” and “significant changes”,as the more feasible instruction on terminating employment contract in our juridical practice.The fourth part is the enhancement of the previous three parts.Combing with excellent experience from abroad,it replies the problems regarding the recognition standards of the substantive and procedural requirements of this system,and the proof of such requirements.In the end,the conclusion part proposes suggestions on perfection of this system.