Legal basis: People's Republic of China (PRC) Labor Contract Law.
Article 25 Except under the circumstances stipulated in Articles 22 and 23 of this Law, the employing unit shall not agree with the laborer that the laborer shall bear the liquidated damages.
Article 22 Where an employing unit provides special training fees and professional technical training for laborers, it may conclude an agreement with the laborers to stipulate the service period. If the laborer violates the service period agreement, he shall pay liquidated damages to the employer in accordance with the agreement. The amount of liquidated damages shall not exceed the training expenses provided by the employer. The liquidated damages that the employer requires the laborer to pay shall not exceed the training expenses that should be shared for the unfinished part of the service period.