【正文】 a basis of equality.　　If during the implementation of an Employer39。s difficulties to cause the other party to conclude an employment contract or to make an amendment thereto that is contrary to that party39。s rules and regulations；　　3〕 mits serious dereliction of duty or practices graft causing substantial damage to the Employer；　　4〕 has additionally established an employment relationship with another Employer whi materially affects the pletion of his tasks with the firstmentioned Employer or he refuses to rectify the matter after the same is brought to his attention by the Employer；　　5〕 causes the employment contract to be invalid due to the circumstance specified in item 1〕 of the first paragraph of Article 26 hereof； or　　6〕 Has his criminal liability pursued in accordance with the law.　　Article 40　　An Employer may terminate an employment contract by giving the Employee himself 30 days39。s Government at the level of municipality directly under the central government or municipality divided into districts of the area1 where the Employer is located the rate for the severance pay paid to him shall be three times the average monthly wage of employees and shall be for not more than 12 years of work.　　For the purposes of this Article the term “monthly wage〞 means the Employee39。s Government. The rates for labor pensation standards for working conditions etc. stipulated in the employment contract bet。s wage for ea full year worked. Any period of not less than six months but less than one year shall be counted as one year. The severance pay payable to a Employee for any period of less than six months shall be onehalf of his monthly wages.　　If the monthly wage of a Employee is greater than three times the average monthly wage of employees in the Employer39。 prior notice.　　Article 38　　A Employee may terminate his employment contract if his Employer：　　1〕 Fails to provide the labor protection or working conditions specified in the employment contract；　　2〕 Fails to pay labor pensation in full and on time；　　3〕 Fails to pay the social insurance premiums for the Employee in accordance with the law；　　4〕 Has rules and regulations that violate laws or regulations thereby harming the Employee39。s labor pensation during the term of service according to the normal wage adjustment meani.　　Article 23　　An Employer and a Employee may include in their employment contract provisions on confidentiality matters relating to maintaining the confidentiality of the trade secrets of the Employer and to intellectual property.　　If a Employee has a confidentiality obligation the Employer may agree with the Employee on petition restriction provisions in the employment contract or confidentiality agreement and stipulate that the Employer shall pay financial pensation to the Employee on a monthly basis during the term of the petition restriction after the termination or ending of the employment contract. If the Employee breaes the petition restriction provisions he shall pay liquidated damages to the Employer as stipulated.　　Article 24　　The personnel subject to petition restrictions shall be limited to the Employer39。LAW OF THE PEOPLE′S REPUBLIC OF CHINA ON EMPLOYMENT CONTRACTS　　Adopted at the 28th Session of the Standing mittee of the 10th National People′s Congress on June 292007　　Effective from January 1 2021　　APTER 1 GENERAL PROVISIONS　　Article 1　　This Law has been formulated in order to improve the employment contract system to specify the rights and obligations of the parties to employment contracts to protect the lawful rights and interests of Employees and to build and develop harmonious and stable employment relationships.　　Article 2　　This Law governs the establishment of employment relationships between and the conclusion performance amendment termination and ending of employment contracts by organizations su as enterprises individual economic organizations and private nonenterprise units in the People39。s training and gives him professional tenical training it may conclude an agreement specifying a term of service with su Employee.　　If the Employee breaes the agreement on the term of service he shall pay liquidated damages to the Employer as agreed. The measure of the liquidated damages may not exceed the training expenses paid by the Employer. The liquidated damages that the Employer requires the Employee to pay may not exceed the portion of the training expenses allocable to the unperformed portion of the term of service.　　The reaing of agreement on a term of service between the Employer and the Employee does not affect the raising of the Employee39。 prior written notice to his Employer. During his probation period a Employee may terminate his employment contract by giving his Employer three days39。s Court；　　4〕 The Employer is declared bankrt；　　5〕 The Employer has its business license revoked is ordered to close or is closed down or the Employer decides on early liquidation； or　　6〕 Another circumstance specified in laws or administrative statutes arises.　　Article 45　　If an employment contract expires and any of the circumstances specified in　　Article 42 hereof applies the term of the employment contract shall be extended until the relevant circumstance ceases to exist at whi point the contract shall end. However matters relating to the ending of the employment contract of a Employee who has lost or partially lost his capacity to work as specified in item 2〕 of Article 42 hereof shall be handled in accordance with state regulations on workrelated injury insurance.　　Article 46　　In any of the following circumstances the Employer shall pay the Employee severance pay：　　1〕 The employment contract is terminated by the Employee pursuant to Article 38 hereof；　　2〕 The employment contract is terminated after su termination was proposed to the Employee by the Employer pursuant to Article 36 hereof and the parties reaed agreement thereon after consultatio