Huawei Ends N+1 Severance for Voluntary Resignations Starting April 2026
Huawei Removes N+1 Severance Pay for Voluntary Resignations
Huawei has announced a significant change to its employee severance policy, removing N+1 compensation for employees who voluntarily resign, effective April 1, 2026.
Policy Changes
According to the FAQ document published on April 8, 2026:
- Voluntary Resignation: No longer eligible for N+1 severance compensation
- Involuntary Termination: Still receives statutory N+1 compensation, calculated per labor law
- Serious Violations: No compensation (unchanged from previous policy)
- Severance Calculation: Base and cap rules now follow statutory legal requirements
- 8-Year Contract Renewal: Employees still need to change employee IDs upon renewal
- Applicability: Applies to employees whose attendance cutoff date is April 1, 2026 or later
Previous Policy vs. New Policy
Under the 2025 employee handbook, employees terminated through dismissal or encouraged resignation ('劝退') were eligible for N+1 compensation. Only those removed for serious violations ('除名') were excluded. The new policy adds voluntary resignation to the exclusion list.
Industry Context
Huawei's policy change reflects a broader trend among Chinese tech companies adjusting compensation structures amid economic headwinds. The change significantly affects employees' leverage when negotiating departures, as the prospect of N+1 compensation has traditionally served as a safety net.
With over 200,000 employees globally, the policy change at Huawei could influence industry norms across China's technology sector.
Source: Zhihu / Multiple Reports — April 8, 2026