An employer must issue a written certificate of revocation or termination of the labor contract after the employment relationship with the employee ceases. This is a legal obligation of the employer – not a right of the employer over the employee. If the employer violates this obligation, it must bear the corresponding legal liability.

According to the Regulation on the Implementation of the Employment Contract Law of the People's Republic of China, the certificate of revocation or termination of the labor contract issued by the employer must specify the term of the labor contract, the date of revocation or termination, the job position and the length of service at the company.

Some employers may think that completing the resignation procedures alone is sufficient and that a written certificate is unnecessary. However, resignation procedures and a written certificate are different. A written certificate plays an important role for workers in terms of unemployment and re-employment.

Unemployment support

The certificate serves as proof that the worker is in a state of unemployment and as the basis for registering unemployment and claiming unemployment insurance benefits.

Re-employment

When a worker joins a new company, the new employer will verify the revocation or termination of any previous employment contract – as well as other documents that prove the employee has no existing employment relationship with any other employer – to avoid dual employment and related labor disputes. If the former employer fails to issue the revocation or termination certificate as required, the worker may be unable to smoothly transition to the new job.

If the employer causes losses to the worker by failing to provide the written certificate, it must bear corresponding liability for compensation.

Source: Official WeChat account of the Shanghai Municipal Bureau of Human Resources and Social Security