Foreign Investment

Protecting Union Officials on Termination

A grassroots union official is an ordinary employee in contract terms, yet the law wraps a separate protective layer around them: the company cannot run the ordinary termination sequence it uses for other staff. That layer sits in Article 177 of the 2019 Labour Code and is one of the points hasty HR decisions trip over most often.

Written agreement: the precondition

Clause 1, Article 177 provides that when the employer unilaterally terminates the contract, dismisses, disciplines or transfers to another job an employee who is a part-time union official, it must reach a written agreement with the grassroots union executive committee. Where no grassroots union exists yet, the agreement counterpart is the executive committee of the directly superior union. Without that written agreement, the HR decision — however well-founded its substance — lacks a legal condition.

One frequently missed detail: the protective layer also covers “transfer to another job”, not only termination or dismissal. Moving a grassroots union chair to a lower position or a farther location right after they confronted the company in dialogue will be examined through the lens of retaliation against union activity, even if the transfer wears a restructuring label. Every HR decision touching a union official should carry an independent, objective reason file built before any dispute arose.

Contract expiring mid-term and the 30-day mechanism

Clause 2, Article 177 handles a technical but common situation: if the union official’s labour contract expires while their union term is still running, the contract is extended until the union term ends. The company cannot use the contract expiry date to “naturally” part ways with a mid-term union official — the extension operates by law, and only after the term closes do the parties return to the ordinary contract mechanism.

Where agreement with the union executive committee cannot be reached, clause 3, Article 177 opens a controlled exit: both sides report to the competent authority or organisation; after thirty days from the report without a different outcome, the employer may decide and bears legal responsibility for its decision. Keep the full file: the agreement request, working minutes, the report and the thirty-day milestone — this paper chain is the compliance evidence when the decision is challenged.

Consequences of skipping the layer, and the official’s remedies

Terminating a union official without the Article 177 agreement is an unlawful termination: the employee is restored under the Article 41 mechanism of the 2019 Labour Code (reinstatement, wages and insurance for the excluded period, compensation of at least two months’ salary), with the added risk of being characterised as discrimination against union activity — a prohibited-conduct group. In a dispute, the union official also receives legal support and representation from the union organisation.

For the company, doing it right costs little more than doing it wrong: check the list of part-time union officials before every restructuring or discipline round; build the written-agreement step into the HR checklist for this group; and keep the HR decision visibly separate from any recent union conflict. A company that can show its decision flowed from objective business reasons and completed the Article 177 sequence stands very firm even if the official sues.

Frequently Asked Questions

What is needed to let a union official go?
A written agreement with the grassroots union executive committee (or the directly superior union’s committee where no grassroots union exists) before unilaterally terminating, dismissing, disciplining or transferring a part-time union official — under clause 1, Article 177 of the 2019 Labour Code. Without it, the decision is unlawful.

How does the union agreement work?
It is made in writing. If no agreement is reached, both sides report to the competent authority or organisation; after thirty days from the report, the employer may decide and bears responsibility for that decision (clause 3, Article 177). All requests, minutes and reports must be archived.

Is the contract extended?
Yes: if the labour contract expires while the official’s union term is still running, the contract is extended until the union term ends under clause 2, Article 177 of the 2019 Labour Code. The company cannot use the expiry date to end the relationship mid-term.

Can the official sue?
An official terminated in breach of the rules may complain and sue through the individual labour dispute sequence, claiming the Article 41 consequences (reinstatement, wages, insurance, compensation). The union organisation may provide legal support and representation throughout.

This article has been quality-reviewed by the FLAW AI Legal Council