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viking ,
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I live in China, and this is common practice. Most companies here will fire people without notice (4 weeks is the legal minimum) or compensation (one month salary per year left on your contract, minimum 1 month, maximum 6 months).

Filing a labor dispute is trivially easy though, and will be sorted within 14 days. Most workers however are afraid of repercussions, since usually company execs are well connected, and reference checks would reveal that someone is a “noisemaker”. Also, most actual shop-floor workers have zero knowledge about the legal system and give up before even evaluating options.

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