Labor Dispute: Employee Awarded 6,887 Yuan for Medical Leave and Minimum Wage Violations

A court in eastern China has ordered a trading company to pay 6,887.75 yuan in unpaid medical leave wages, minimum wage deficiencies, and severance compensation after an employee resigned over chronic wage violations.

Ms. Li began working for a trading company in September 2008 as a salesperson. Her contract specified a monthly base salary of 950 yuan plus commissions, with standard working hours. The contract term ended September 30, 2011.

In August 2011, Ms. Li took medical leave. The company approved leave through September 30. Medical records showed she continued receiving treatment into October, with the last medical certificate dated October 30 recommending one week of rest.

The company paid only 950 yuan monthly for August and September, below the medical leave standard. It paid nothing for October. Wages for April and May 2011 were also below the local minimum wage.

On October 27, 2011, Ms. Li sent a resignation notice citing chronic wage arrears and sub-minimum payments. The company argued the contract had ended on September 30, making resignation irrelevant.

The court found the company recognized the employment relationship continuing into October by sending a contract renewal inquiry form on October 25. Ms. Li was entitled to medical leave benefits through her resignation date. The company’s failure to pay full wages entitled her to severance.

The court ordered payment of 1,111.50 yuan for medical leave benefits, 428 yuan for minimum wage deficiencies, 107 yuan as compensation for delayed payment, and 5,241.25 yuan in severance. Overtime claims were denied for lack of evidence.

Disclaimer: This article is for informational purposes only and does not constitute legal advice.