Breaking Your Contract in China: New Consequences for Pulling a “Midnight Run”

Mar 26, 2013 By Trey Archer , eChinacities.com Comments (35)     Add your comment Newsletter

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Anyone who has lived in China, especially those in the ESL field, might recognize this scenario: You show up to work ready to start the day but notice your boss in a frenzy, frantically dialing digits on the phone hoping to get a response from your co-worker who just so happens did not show up that day or provide anyone with a valid absence excuse. After a day or two of being MIA, it’s a safe bet that you’ll most likely never see your disappeared colleague ever again, because he or she probably pulled the infamous “midnight run”—grabbing your paycheck and leaving the company before the contract ends without telling a soul. While breaking your contract in China had very few repercussions in the past, times have changed and the government has now issued new measures to dissuade foreigners from breaking contracts and punishing those that do. Before you or someone you know decides to pull a midnight run, here is some information you should know concerning the edicts of breaching your employment contract in China.

midnight run
Source: goodfilmguide.co.uk

Consequences for expats breaching their contracts

There are some new rules to the game that you should take into consideration before breaking your contract via midnight run. As of February 1, 2013, the State Administration of Foreign Expert Affairs (SAFEA) now has an online database where companies can put the personal information (including nationality and passport number) of foreign employees who’ve breached their contracts. (Click here to see a sample list of midnight running expats). Major breaches of privacy aside, having your information on this list will also red flag your name with other companies looking to hire you and seriously damage your credibility. Furthermore, if the company reports you, they can have you blacklisted from China for three years or more if they’re really looking to seek revenge. In the worst-case scenario, which might be more prevalent with major corporations rather than ESL institutions, a lawsuit can be filed. Though law suits are much less common in China than they are in the West, they’re definitely the last place a foreigner wants to be since, as China Law Blog warns, foreigners tend to do “poorly” in Chinese courts when facing contract disputes.

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