Legal Question in Business Law in China

Re: disgruntled employee

Is this person in China or the United States? What you are describing sounds like blackmail. Whether or not they would be liable depends on the damaging information being relayed and your employment/non-disclosure agreement with them. If the damaging information is something you have done illegally or implies a breech of contract, they might be protected under the whistleblower statutes. That doesn't allow them to commit blackmail though.

I would add this only applies to California law, I know next to nothing about such laws in China. Although, my limited experience (not legal opinion) would imply that you will have a very difficult time prosecuting such a case over there.

I would add this only applies to California law, I know next to nothing about such laws in China.

Re: disgruntled employee

If the business is in China, ask a Chinese lawyer, not an American.

If in America, then you may have legal recourse.

Re: disgruntled employee

You have not provided enough info. Do you have a legal entity in China to hire this individual? In China, foreign companies can only hire CHinese nationals through a legal entity such as representative office or a wholly foreign owned subsidiary (WFOE). Assuming you have all above in place and he is hired legally, then the answer to your question would be yes, he could be held liable for damages, IF the damaging information is not true. But, practically speaking, the procedures, time and effort would be daunting to take civil action against your employee. Depends on the wording of your confidentiality and non-compete agreements with the employee. Proof of the untruthfulness, damage will be very difficult to show in the Chinese court. Sounds like this person needs to be let go and hire a better employee. Again, termination is an area that must be handled carefully in China. Feel free to contact me directly if want to discuss more.