Under Chinese Labor Law, a probation period may be stipulated in a labor contract; however the probation period may not exceed six months. A regulation issued by the Ministry of Labor in 1996 stipulates that if the contract term is less than six months, the probationary period cannot exceed 15 days; if the contract term is between six months and one year, the probationary period cannot exceed 30 days; if the contract term is between one year and two years, the probationary period cannot exceed 60 days. It further stipulates that if the employee is proved “unqualified” for the position during the probationary period, the employer can terminate the contract at will without notice or a severance fee. But what is the standard for “unqualified?” The law doesn't give a clear explanation of “unqualified.”

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