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The termination of labor contract with the dishonest persons subject to enforcement


Ask by:Manufacturing industry  HR

Hello, Lawyer! Our company's new employee did not disclose the fact that he has been included in the list of dishonest persons subject to enforcement during the new staff orientation. Is the company allowed to terminate the labor contract on this ground?

Answered by: RDL- Beijing Lawyer Lili Wang

Hello! Whether the company can terminate the labor contract with the dishonest persons subject to enforcement depends on the following circumstances. Generally, it is necessary to evaluate whether the company has the right to know the information of dishonest persons and whether employee's concealed information has influenced his performance of the labor contract. Moreover, it is usually limited to executive positions and might not be expanded at will.

More specifically, from the perspective of maintenance for the entire social credit system and the country's judicial authority, it is necessary to establish the joint punishment system of dishonest persons subject to enforcement like "losing faith in one area shall be restricted everywhere". However, the operation of the punishment mechanism shall be strictly limited in the legal framework. It is not allowed to simply equate the dishonest judgement debtors with the legitimate termination or invalidity of the labor contract.

In terms of the Labor Contract Law, the employer has the right to know about the employee's basic information when he establishes labor relationship with the employee, and the employee has the duty of disclosure. However, the employer's right to know is only limited in the "basic information directly related to the labor contract". From the regulations in the Opinions of the General Office of the PRC Central Committee and the General Office of the State Council on Accelerating the Advancement of the Development of a Credit Supervision, Warning and Punishment System of Dishonest Persons Subject to Enforcement, the government's restraints on qualifications for posts are only limited in senior executives and people in charge in relevant industries, and are not applied for ordinary workers of general industry. Moreover, in the current punishment mechanism, the dishonest persons subject to enforcement are not allowed to have high consumption or unreasonable consumption and are subject to travel. Therefore, based on the above analysis, if the employee has not honestly disclosed information, which has no influence on his fulfillment of the labor contract as an ordinary worker, the legal risk of unilateral termination of labor contract is high.


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