If a branch was deregistered, whether it could terminate the labor contracts with employees?
If a company was deregistered, the labor contracts between it and its employees shall be terminated. However, in practice, there is dispute regarding the termination of labor contracts where a branch was deregistered. Because according to the “Company Law”, a branch does not have the corporate capacity and its liability shall be borne by the company. The reason for this dispute is the different interpretations of Article 44 (5) of the “Labor Contract Law”. Article 4 of the “Implementation Regulations of the Labor Contract Law” stipulates that, a branch which has obtained a business license, is entitled to conclude labor…