Normally, when the term of an employment contract expires, the contract will terminate naturally. But under some specific circumstances, the law stipulates that the employment contract should be extended until extinguishment of the corresponding circumstances, which is called the statutory extension of employment contract.

The employment contract will be automatically extended when the circumstances of statutory extension occur. The parties concerned are not required to negotiate and renew the employment contract under this circumstance.

According to the relevant laws and regulations of the PRC, the circumstances of statutory extension of employment contract mainly include:

1. The employee who has engaged in work exposed to occupational hazards has not undergone post-employment occupational health check or the employee is suspected of having contracted an occupational disease and is waiting for diagnosis or under medical observation. The employment contract shall be extended until expiration of the aforesaid period under this circumstance.
   
   
2. The employee has completely or partially lost his/her labour capability due to an occupational disease or work injury. The case shall be dealt with pursuant to the provisions of the State on work injury insurance under this circumstance.
   
   
3. The employee remains within the legally defined medical treatment period for a non-work-related illness/injury. The employment contract shall be extended until expiration of the medical treatment period under this circumstance.
   
   
4. The employee is pregnant, on maternity leave or in the nursing period. The employment contract shall be extended until expiration of the aforesaid period under this circumstance.
   
   
5. The employee has worked for 15 years consecutively with the employer and will attain his/her statutory retirement age in less than 5 years' time. The employment contract shall be extended until the employee reaches the retirement age under this circumstance.
   
   
6. The service period agreed by the employer and the employee is longer than the term of the employment contract. The employment contract shall be extended until the expiration of the service period.
   
   
7. Any other circumstances stipulated by the laws and regulations.

When the circumstances of statutory extension occur, the employer shall not unilaterally terminate or end the employment contract against the mandatory provisions of laws and regulations. Otherwise, it shall be deemed as unlawful termination of employment contract. The employee is entitled to ask the employer to pay compensation for unlawful termination of employment or ask the employer to continue the performance of the employment contract and pay back wages.

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