Can an Employer Terminate an Employee for Concealing Sickness?

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On October 25, 2020, David joined A Company as a maintenance worker. The employment contract stipulated that "if an employee provides false personal information, the company has the right to terminate the contract."

In addition, the Job Application Form stated: "All statements made in this application form are true and correct. If there are any omissions or falsehoods, I accept immediate dismissal without compensation. I authorize the company to conduct all inquiries concerning my situation. I am willing to undergo necessary pre-employment and post-employment physical examinations."

Before joining, David had suffered a back injury that prevented him from performing certain physically demanding tasks. However, when filling out the Job Application Form, he left the section asking "Have you ever had or do you currently have any illnesses?" blank, without providing any explanation.

In November 2020, when completing the Employee Personal Information Card, David also left the "Past Medical History" section empty. During a pre-employment health check on October 29, 2020, David marked "No" for "Past Medical History" on the Health Examination Form.

Every year, David's work performance was below 2.5 points, failing to meet company expectations.

On October 28, 2023, the company issued a "Notice of Termination of Employment Contract" to David, stating that he had intentionally concealed his serious injury, making him unable to fulfill the maintenance work assigned by the company. This led the company to sign an employment contract under fraudulent circumstances, one it should not have entered into.

David believed that this information was private and did not need to be disclosed. He claimed the company's termination was illegal and should restore the employment relationship. A dispute arose between the two parties, leading through arbitration, a first trial, and an appeal.

Can an employer terminate an employee for concealing past medical history upon hiring? The answer is: David's concealment of his past medical history constituted fraudulent behavior, rendering the employment contract signed by both parties invalid.    

Both the first instance and appellate courts held that:when establishing an employment contract, the principles of legality, fairness, equality, voluntariness, mutual agreement, and good faith should be followed.

David failed to truthfully disclose his health status to the company upon joining and did not inform the company truthfully when filling out the Job Application Form, leading the company to sign an employment contract with him, which was suspected of deception. His argument that this was private information was insufficient.

Article 8 of the "People's Republic of China Employment Contract Law" states: "...employers have the right to understand basic information about employees directly related to the employment contract, and employees shall truthfully provide such information." David, citing privacy concerns, failed to truthfully inform the company, constituting fraudulent behavior.

Therefore, the Employment Contract signed between David and the company should be considered an invalid contract. Both parties were at fault for entering into the contract. For the labor David provided, the company should pay wages, and wages already paid are not refundable. Other losses should be borne by each party respectively. Therefore, David's lawsuit seeking restoration of the employment relationship was not supported by the court.

Related provisions:

Article 26 of the Employment Contract Law stipulates: The following employment contracts are void or partially void: 

(1) contracts established or changed through fraud, coercion, or taking advantage of someone in distress, causing the other party to enter into or change the contract against their will...

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