Successful Release + Cancellation Letter – Law In A Minute

Late in November, I was approached by Obi and Fifi, a South African couple who were teaching at primary schools in Hangzhou. They shared a common predicament as their contracts were signed through an agency rather than directly with the schools.

For those of you working with agencies that place you in schools, heed this warning: it’s illegal to work anywhere other than the location specified on your work permit, which in their case, was the school listed.

 

Facing the desire to relocate and work together in a new city, Obi and Fifi were fraught with concern. They were aware of the harsh reality that many unscrupulous employers impose penalties equivalent to at least one month’s salary, or in some cases, the costs incurred to bring them to China. Refusal to comply with these penalties often results in the employer withholding crucial documents such as the release letter and cancellation letter. Without these documents, one is effectively barred from obtaining employment elsewhere in China. Despite its illegality, this practice is quite common.

 

In such a scenario, the recourse is to either file a lawsuit against the employer in labor arbitration—which is specifically designed to resolve labor disputes—or lodge a labor supervision complaint. Labor arbitration can take up to two months, whereas labor supervision typically resolves in about a week. However, many labor supervision units do not consider work permit cancellation within their purview and may deem issuing a mere release letter as too trivial to warrant their intervention, making luck a significant factor. If other disputes such as unpaid wages or severance claims are involved, these units may be more inclined to take up the case. But this, too, is not a certainty—I’ve witnessed units expressly inform my team that they prefer not to get involved, advising us to pursue arbitration instead.

Consequently, Obi and Fifi enlisted my help to navigate a smooth and penalty-free departure, along with the procurement of their release documents.

Upon discovering that their social insurance contributions had not been paid, I opted to employ a familiar strategy: terminating the contract on the grounds of unpaid social insurance, followed by a lawsuit for severance pay and the release documents. Fortunately, the situation unfolded favorably, allowing us to negotiate a seamless transition. Ultimately, Obi and Fifi successfully obtained their release letters, cancellation letters, and work experience certificates.