Can companies adjust positions or extend contracts during business changes?
Employers may adjust employee positions during business restructuring, but the legitimacy of such changes depends on the circumstances.
If the labor contract explicitly outlines the possibility of position adjustments, the employer may reassign roles, provided it can demonstrate that changes in production or business operations necessitate the move. This is generally deemed reasonable.
In cases where the contract does not specify the position or the clause is vague, employers retain some flexibility. As long as the reassignment aligns with operational needs and is carried out reasonably, it falls within the company's right to manage staffing.
When determining the fairness of a job adjustment, authorities may consider the employer's operational necessity, the legitimacy of the reason, whether the employee is capable of performing the new duties, and whether the salary or working conditions have deteriorated.
Another common question arises when a company extends a fixed-term contract by a few months: Does this count as a new contract?
According to labor regulations, if the new end date is later than the original one, it is considered the signing of a second contract. Should two or more fixed-term contracts be signed in this manner, the conditions may be met for transitioning to an open-ended contract. However, if the new end date is earlier than the original, the change is simply regarded as a revision of the original contract, still regarded as a single contract.
Source: Official WeChat account of the Beijing Municipal Bureau of Human Resources and Social Security