This matter is actually quite simple, but it becomes complicated for expats, especially when considering work permits, residence permits, breach penalties, and unethical employers. For Chinese citizens and green card holders, they only need to submit a 30-day written resignation letter, and they can leave after the 30-day notice period.
However, expats often encounter contract clauses requiring a 60 or 90-day notice, or even a one-semester notice, particularly for teachers. This is because it is challenging to find replacements, especially expat teachers, in the middle of a semester, so more time is required.
To replace a teacher, the company has two options: recruiting from the existing pool of foreigners in China or finding someone overseas. Both options take time and money. Hiring someone from another company requires offering a higher salary, and recruiting overseas involves notarizing degrees, conducting background checks, and obtaining Z visas from the Chinese embassy, which takes around two to three months.
Therefore, schools, in particular, prefer teachers who can complete their contracts and may go to great lengths to prevent employees from leaving. They may refuse to provide a release and cancellation letter, which are crucial for expats working in China.
Although this is illegal, employers may still do it to keep you hostage or seek revenge for your intention to leave. In such cases, I have two solutions for you. The first solution is to address the issue before it arises. Meet with your employer and gauge their response by asking if they would release you upon resignation. Clearly state that your reason for leaving is personal and not due to dissatisfaction with the environment or pay. Using a personal reason helps avoid emotional conflicts or hard feelings. For example, a valid personal reason could be relocating to another city to be with your significant other. If they agree to release you, submit a 30-day written notice, and you should be fine.
If the situation turns unpleasant, and your employer demands a fine, you should consider whether paying the fine is the easier solution. Legal action takes time and money, as you may need to hire a lawyer. Engaging in lawsuits also incurs financial losses since that time could be spent working for another employer and earning money.
However, if the fine is exorbitant or your employer refuses to release you even after paying the fine, we move on to Plan B. Plan B involves checking for any past illegal deductions in your salary or unpaid social insurance. In most cases, social insurance is unpaid, which is illegal. We can leverage this as grounds for immediate contract termination and pursue severance pay. Severance pay provides a strong bargaining chip for negotiation and levels the playing field.