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‘Cunning and manipulative’: China firm relocates to remote area forcing employees to resign, avoiding compensation payouts

  • Ex-employees expose devious company, say they were pushed out of jobs
  • Boss threatens staff with legal action for tarnishing reputation of firm

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A company in China has come under fire after it moved from a central business district to a remote mountainous location, forcing staff to resign without compensation, then moved back to the city to hire new employees. Photo: SCMP composite/Shutterstock/Douyin
Yating Yangin Beijing

A company in China that relocated from a downtown business district to a remote mountainous area allegedly did so knowing employees would have to resign instead of being laid off and paid compensation.

The situation came to light through a former employee, surnamed Chang, who exposed the Xian-based advertising company in central China’s Shaanxi province.

He described the new location in the Qinling Mountains as extremely remote, requiring a two-hour, one-way commute, with limited access to public transport.

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“My colleagues without vehicles had to rely on a bus that ran every three hours and then walk another three kilometres through mountainous paths to reach the office,” Chang said.

A taxi from the nearest railway station costs 50 to 60 yuan (US$8) and the company refused to provide commuting subsidies, he added.

Working conditions were so bad at the mountainous location that female staff had to use public toilets in the nearest village. Photo: Douyin
Working conditions were so bad at the mountainous location that female staff had to use public toilets in the nearest village. Photo: Douyin

Chang also highlighted the poor quality and unsafe working conditions at the site, which lacked proper amenities.

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