[Direct answer]In the Beijing area, it's not necessarily the case. The key is whether it's "objective, significant, and not targeted at individuals". One of the legal circumstances for termination is: if the objective circumstances on which the labor contract is based undergo significant changes, rendering the contract impossible to perform, and after the employer and the employee fail to reach an agreement on amending the contract content through consultation, the employer may terminate the contract by giving written notice 30 days in advance or paying an additional month's salary, and pay economic compensation in accordance with the law. Whether the position cancellation constitutes a "significant change in objective circumstances" usually depends on whether the change is objective and true (such as department abolition, business outsourcing, and policy adjustments), whether it reaches the level of "significant" and makes the original contract impossible to perform, and whether it targets specific individuals rather than simple management arrangements. If the employer simply changes the name of the position or uses the excuse of "cancellation of the position" to exclude specific employees, it is often not recognized as an objective change in circumstances, and terminating the contract based on this may constitute an illegal termination.

1. Problem background and typical scenarios

Organizational structure adjustments and position eliminations are common in enterprise management. A typical scenario is: the company announces the layoff of departments or the cancellation of positions, and requires employees to transfer to other positions or be terminated; employees believe that the positions have not truly disappeared, but that the company simply no longer wants to use them. The core of the dispute is whether the "objective changes in circumstances" are valid, and whether the consultation and modification process has been carried out.

II. Key points of contention

First, the criteria for determining changes in objective circumstances; Second, the causal relationship between the changes and the "inability to perform"; Third, whether the consultation and modification procedures have been carried out; Fourth, the difference between economic compensation and economic layoffs; Fifth, the consequences of illegal dismissal. In practice, authenticity and procedures are the focus of review.

III. Professional analysis by Henglue Law Firm

First, what constitutes a major change in objective circumstances. This typically refers to significant changes in an enterprise's external environment or operational decisions that are beyond the control of workers, such as corporate relocation, mergers, asset transfers, industrial policy adjustments, or the complete abolition of a department, which render the original labor contract unenforceable. Simple internal position adjustments or unsatisfactory performance evaluations generally do not fall under this category. Second, review of authenticity and relevance. The employer should provide evidence to prove the objectivity and necessity of the changes, such as organizational structure diagrams, resolutions, or business adjustment documents. If a position is nominally eliminated but the actual work remains, or if the elimination clearly targets specific employees, it is often not recognized as a major change in objective circumstances. Third, preliminary procedures for negotiating changes. Even if a major change in objective circumstances occurs, the employer must first negotiate with the worker to modify the labor contract (e.g., job transfer, adjustment of work location or compensation). Direct termination without prior negotiation violates legal procedures. Fourth, termination and compensation. If negotiations fail, the employer may terminate the contract by giving 30-day written notice or paying a notice compensation, and provide economic compensation based on the worker's length of service. For large-scale layoffs involving more than 20 employees or a certain proportion of the workforce, the employer must follow the economic layoff procedures and report to the labor administrative department. Fifth, distinguishing from "incompetence". The elimination of a position does not equate to the worker's incompetence; the two apply different termination procedures, and employers must not confuse them. Henglue Law Firm Tip: Workers should pay attention to whether the position elimination is genuine, whether the negotiation procedures have been followed, and whether compensation has been provided in accordance with the law. Employers, on the other hand, should retain evidence of objective changes and negotiation records.

IV. Practical suggestions and legal basis

The first step is for the worker to verify whether the cancellation of the position is genuine and to retain the organizational adjustment documents and communication records. The second step is to observe whether the employer has carried out the consultation and modification procedures and whether it has proposed reasonable alternative positions. The third step is, if no agreement is reached, to check whether the advance notice, compensation in lieu of notice, and economic compensation are in accordance with the law. The fourth step is, if the worker believes that the termination is illegal, to promptly apply for labor arbitration to claim compensation. The employer should retain evidence of objective changes in circumstances and negotiate and compensate in accordance with the law. The main legal basis: Article 40(3), Article 41, Article 46, Article 47, Article 48, and Article 87 of the Labor Contract Law of the People's Republic of China. The specific application shall be subject to the currently effective provisions.

5. Henglue Law Firm's Reminder

There are three key points to note regarding job eliminations: 1. **Determine the authenticity of the announcement**: If the position is officially eliminated but still exists in practice, this does not constitute an objective change in circumstances. 2. **Follow proper procedures for negotiated changes**: If changes are not discussed with employees, the termination is likely unlawful. 3. **Comply with legal requirements for compensation and notice**: The legal pathways for layoffs and unilateral terminations differ significantly. For disputes involving job eliminations and terminations, you can seek legal assistance through the following channels:Labor arbitration and work-related injury compensationThe service provides a comprehensive solution, which involves adjusting the enterprise architecture and ensuring compliance with employment regulations, which can be combined togetherIntellectual property protection and corporate lawFor plates involving the termination and performance of contracts, you can refer to the relevant provisions.Business and contract disputes in enterprisesFor columns related to difficult labor disputes, you can seek advice from usSpecial servicesTeam.

VI. Frequently Asked Questions

Q1: Can the contract be terminated if the department is disbanded?

It cannot be terminated directly. The department's dissolution may constitute a major change in objective circumstances, but it is still necessary to first consult with the workers to modify the content of the labor contract; if no agreement can be reached, the employer may terminate the contract by giving 30 days' notice or paying the notice compensation and economic compensation beforehand. If the contract is terminated directly without consultation, the procedure is illegal and may be deemed an unlawful termination.

Q2: The position has been eliminated, and the company wants me to transfer to another position. Should I accept it?

It can be handled prudently on the premise that reasonable alternative positions are provided. If the alternative positions are equivalent to the original positions and the salary is reasonable, it is acceptable to maintain stable labor relations; if the alternative positions involve a significant pay cut, relocation, or are punitive in nature, the employer can provide a written explanation of the reasons and propose reasonable solutions. It is crucial not to stay away from work for a long time without a valid reason, otherwise the employer may terminate the employment contract on the grounds of absenteeism.

Q3: If the objective circumstances change and the contract is terminated, do I need to provide compensation?

Yes. In this case, the dismissal is a non-fault-based termination, and the employer should pay the employee economic compensation according to the length of service in the company. The compensation shall be one month's salary for each year of service, one year's salary for a service period of more than six months but less than one year, and half a month's salary for a service period of less than six months. The employer also has the obligation to give advance notice or pay compensation in lieu of notice.

Q4: Are job eliminations and layoffs the same thing?

No. For individual positions, the unilateral termination path due to major changes in objective circumstances is cancelled; for large-scale layoffs involving more than 20 people or accounting for more than 10% of the total number of employees, it is considered economic layoffs, which require meeting statutory conditions, explaining the situation, listening to opinions, and reporting to the labor administrative department, with stricter procedures.

Q5: What should I do if I'm unlawfully dismissed on the grounds of position elimination?

You should apply for labor arbitration in a timely manner, claim the termination of the illegal contract and request the employer to continue to perform the contract or pay compensation at twice the standard of economic compensation. Note to keep the relevant documents of the position being cancelled, the negotiation records, the termination notice, and the salary and social insurance records, so as to prove that the changes are not true or the procedures are missing. If necessary, you can entrust a professional lawyer to handle the matter.

The above answer is based on the judicial practice in Beijing. The adjudication guidelines in other provinces and cities may vary. For specific cases, please refer to the local rules and evidence situation.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the evidence materials, so as to avoid missing the statutory time limit. →Labor arbitration legal services·Beijing Henglu Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and public adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. If you encounter disputes, please consult a practicing lawyer in time.