Last Place Is Not Incompetence

On November 8, 2013, the Supreme People’s Court published Guiding Case No. 18, ZTE (Hangzhou) v. Wang Peng. The court held: “An employee who ranks in the last tier of an employer’s graded evaluation is not thereby ‘unable to do the job.'” Ranking last does not meet the legal conditions for ending a contract unilaterally, and the employer cannot dismiss the employee on that ground.

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