The risk assessment of labor disputes in a withdrawal project in China involves analyzing the current situation (employee composition, contract status, existence of past labor problems), thoroughly understanding Chinese laws and regulations (termination conditions, economic compensation, overtime regulations, etc.), assessing relationships with key executives, understanding the local situation (unions, government agencies, online public opinion), assuming risk scenarios (class action lawsuits, This comprehensive process will lead to the early identification of potential risks and the formulation of effective countermeasures, such as increasing economic compensation.

Specific steps in risk assessment

1. Identify the current employee and organizational structure
Employee composition analysis: Identify in detail age, length of service, position, employment status (regular/non-regular), wage level, union membership status, etc.
Identification of key persons: Identify management, senior executives, union leaders, and other influential persons, and ascertain their intentions.
Inventory of past labor problems: Confirm the existence and details of any unpaid overtime, dismissal problems, wage disputes, etc., and the status of their resolution.

Reconfirm and apply Chinese labor laws and regulations
Justifiable cause for dismissal: Understand the existence of “clear justifiable cause,” the notice period for dismissal (usually 30 days), and the requirements for payment of notice allowance.
Economic Compensation (Severance Pay): To understand the calculation method of “average monthly salary x years of service” and the upper limit of over 3 times wages (depending on the region).
Working Hours and Overtime Pay: Reconfirm legal working hours (8 hours/day, 44 hours/week) based on the Labor Standards Law, the application of the 36 Agreement, and the obligation to pay overtime wages.
Employment Regulations and Labor Contracts: Confirm the consistency between the provisions of employment regulations and the contents of individual labor contracts.

3. analysis of impact factors and risk scenarios
How to explain to employees the background of the company’s withdrawal, such as “rising labor costs” and “economic slowdown.
Concreteness of the restructuring plan: fairness in selecting the target employees, how to conduct briefing sessions, and the psychological impact on employees.
Cooperation of key persons (executives and unions): Whether their understanding and cooperation can be obtained is the key to avoiding conflicts.
Potential conflicts: demand for more economic compensation, unfair dismissal complaints, collective bargaining, strikes, internet accusations, etc.

4. risk mitigation measures and implementation
If the risk is high, the company will consider a proposal that is higher than the legal standard amount.
Careful employee briefings: Instead of one-way notification, try to have two-way communication (online/offline, how to explain).
Use of local experts (lawyers, laborers): Obtain advice based on the latest legal interpretations and regional characteristics.
・Collaboration with government agencies: Pre- and post-communication with labor bureaus and competent governments.

By taking these steps, it is important to assess the risks of labor disputes associated with withdrawal from the country from multiple perspectives and establish a system to prevent disputes from arising or to respond promptly and appropriately in the event that they do arise.