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Managing Redundancies in the Peoples Republic of China

February 26, 2009

By K. Lesli Ligorner

In July 2007, when the Employment Contracts Law (ECL) was promulgated, few employers focused on Article 41, the provision regarding mass layoffs. Business was booming and companies were bulking up with new hires. Thoughts of layoffs in the Peoples Republic of China (PRC) were virtually nonexistent. Those thoughts were just as distant in the PRC when the ECL took effect on January 1, 2008.

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