[Direct answer]In the Beijing area, during the medical leave period, companies cannot terminate labor contracts for reasons such as no fault or economic layoffs; after the medical leave period expires, they also cannot directly dismiss employees for absenteeism, but should first prove that the workers cannot perform their original jobs or other arranged jobs, and comply with statutory procedures such as giving 30-day written notice in advance or paying an additional month's salary. For special diseases such as cancer, the medical leave period should be extended to 24 months.

1. Problem background and typical scenarios

Employees who are recovering from major illnesses, post-operative rehabilitation, or chronic diseases often receive two types of notifications: either their sick leave pay is quietly suspended, or they are dismissed for continuous absenteeism once their medical leave period expires. The company's logic is that "if the sick leave request expires without being renewed, it counts as absenteeism," while employees feel that "they are being kicked out before their illness has fully recovered." In such disputes, procedural legitimacy often determines the outcome.

II. Key points of contention

First, the length of the medical leave period. It is divided into different brackets according to the employee's length of service, ranging from three months to 24 months, with special protection for certain diseases. Second, the conditions for dismissal upon expiration of the medical leave period. It requires two consecutive determinations: that the employee is unable to perform their original job duties and that they are still unqualified after being reassigned to other work. Third, procedural obligations. The employer must provide 30-day written notice in advance or pay an additional month's salary, as well as economic compensation and medical assistance fees. Fourth, the obligation to conduct special disease assessments. For employees with special diseases such as cancer, mental illness, or paralysis, the employer is obligated to arrange for a work capacity assessment after the medical leave period expires. Dismissing an employee without conducting such an assessment is considered an illegal termination. Fifth, contract extension upon expiration. If the contract expires during the medical leave period, it shall be extended until the medical leave period ends.

III. Professional analysis by Henglue Law Firm

Public cases explain these rules in great detail. According to the Shandong Court's Lu Fa Case [2023] No. 203, if an employee fails to return to work after the expiration of the medical leave period and the employer terminates the contract on the grounds of absenteeism, the court holds that the termination after the expiration of the medical leave period must meet the following conditions: the employee has already completed the medical leave period, is unable to perform their original job, and is still unqualified after being reassigned. Additionally, for employees with special diseases such as cancer, the employer also has the obligation to apply for a labor capacity assessment. If the employer terminates the contract without following the legal procedures, it is an illegal termination. The court ruled to revoke the termination notice and continue to perform the labor contract. An earlier Supreme People's Court Gazette case, Liang Jieshu v. Nanjing Lefu Catering Company, further established a benchmark for the 24-month medical leave period for special diseases: if the contract expires during the medical leave period, it should be extended until the medical leave period ends. If the contract is illegally terminated or terminated during this period, the court should rule to revoke the termination notice and continue to perform the contract. When these two rules overlap,\nDisputes over medical leaveThe administrative burden in Chinese companies is much heavier than most employers imagine.

IV. Practical suggestions and legal basis

According to Article 3 and Article 6 of the "Regulations on the Medical Leave for Enterprise Employees Suffering from Illness or Non-work-related Injuries" (Labor Department Notice [1994] No. 479), the medical leave period is divided into three to 24 months according to the actual length of service, and it can be extended for special diseases. Article 40(1) and Article 42 of the "Labor Contract Law of the People's Republic of China" (adopted in 2007 and amended in 2012) stipulate the conditions for dismissal after the expiration of the medical leave period and the prohibition of unfair dismissal during the medical leave period; Articles 46 and 47 specify the economic compensation. Under the relevant provisions of the "Measures for Economic Compensation for Breach and Termination of Labor Contracts", medical subsidies are still common in arbitration and settlement proposals. Suggestions: For employees, keep all records of sick leave notes, diagnosis certificates, and leave applications and approvals throughout the process. Before and after the expiration of the medical leave period, require the employer to arrange for an evaluation or job transfer, and do not lose contact with the employer on their own. For employers, complete the two-step identification and notification obligations according to the procedures before discussing termination.

5. Henglu Law Firm's Reminder

The evidence characteristics of medical leave cases are a long timeline and scattered documents. It's more advantageous to establish a file as early as possible. Those who are illegally dismissed can choose to continue to perform the contract or opt for double compensation. The decision can be made based on the patient's condition and the possibility of the position's continuation. The unpaid sick leave wages and unpaid social insurance can be claimed together. For cases involving advance payment of medical expenses and estimation of subsequent treatment costs, reference can be made to relevant provisions.Personal injury and medical disputesThe claim settlement experience; for units that need to improve their sick leave management and compliance processes, they can take advantage of the following tools and resources:Business and commercial legal servicesFor employees with serious illnesses requiring long-term treatment, they should also pay attention to the connection between medical assistance fees and disability benefits, which is often overlooked in the calculation.Beijing Henglue Law FirmIt is recommended that you do not sign and confirm the content upon receiving any termination documents, but consult with others immediately.

VI. Frequently Asked Questions

Q1: Are there high chances of winning in disputes over medical leave periods?

If the unit dismisses an employee without completing the statutory procedures, the rate of determining the dismissal as illegal is high, and the employee has a greater chance of winning the lawsuit.

Q2: What evidence do I need to prepare?

Diagnosis certificates, sick leave notes, leave approval records, salary records, termination notices, communication recordings, appraisal materials, etc.

Q3: What are the approximate costs of attorney fees and arbitration fees?

Labor arbitration is free of charge. Attorney fees are negotiated based on the stage or outcome of the case, and compensation cases are relatively predictable.

Q4: How long does the process take?

Arbitration is generally concluded within 45 days, and if the parties are not satisfied with the result, they can file a lawsuit. The period for appraisal will be extended accordingly.

Q5: What should I do first?

First, file the sick leave and communication records for future reference. Then, verify the length of the medical leave and any procedural flaws in the company's procedures. Finally, decide whether to continue working or pursue legal action to claim compensation.

This article is written based on the common judicial interpretations in the Beijing area. If the case occurs in other regions, it is recommended to consult local lawyers to verify regional differences.

VII. Relevant public cases (for reference only, not handled by our firm)

The following cases are all sourced from the official websites of courts at all levels, judicial authorities, and authoritative media outlets that have been publicly released. They are unrelated to the cases handled by our firm and are provided solely for reference in understanding relevant adjudication rules. They do not constitute opinions on specific cases.

[Case Number]Lufa Case [2023] 203
[Trial Court]A People's Intermediate Court in Shandong Province (case source: Paper News/Shandong Court)
[Judicial Summary]After the expiration of an employee's medical leave, if the employee fails to report to work, the employer may terminate the employment contract on the grounds of absenteeism, but this must meet statutory conditions: the medical leave has expired, the employee is unable to perform their original job, and they are still unable to perform the reassigned work. The employer must provide written notice 30 days in advance or pay an additional month's salary. For employees with special diseases such as cancer, after the expiration of the medical leave, the employer also has the obligation to apply for a labor capacity assessment. If the employer terminates the employment contract directly on the grounds of absenteeism without going through the statutory procedures, it is an illegal termination. The court will rule to revoke the termination notice and continue to perform the labor contract.
[Source]Pengpai News (Lu Law Case [2023] No. 203: Can an employer terminate an employee's contract on the grounds of absenteeism if the employee fails to report to work after the expiration of the medical leave period?) (2023)

[Case Number]The case number has not been made public.
[Trial Court]Nanjing Intermediate People's Court of Jiangsu Province (First Instance: People's Court of Jiangning District, Nanjing City; Cases Published in the Bulletin of the Supreme People's Court)
[Judicial Summary]Workers suffering from special diseases that are difficult to treat, such as cancer and mental illness, shall enjoy a 24-month medical leave. If the labor contract expires during the medical leave, the labor contract shall be extended until the end of the medical leave. If the employer unlawfully terminates or terminates the labor contract during the medical leave and the worker sues to demand the continuation of the performance of the contract, the people's court shall rule to revoke the notice of termination or termination.
[Source]The Bulletin of the Supreme People's Court (Liang Jieshu v. Nanjing Lefu Catering Management Co., Ltd. Labor Dispute Case) (2012)

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

Disclaimer: This article is compiled based on current effective laws and regulations and open 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. In case of disputes, please consult a practicing lawyer in time.