Employer Loses Appeal Over Dismissal for Alleged Fight in Workplace: 900 RMB Compensation Upheld

Employer Loses Appeal Over Dismissal for Alleged Fight in Workplace: 900 RMB Compensation Upheld

CASE OVERVIEW

A Chinese appellate court upheld a lower court ruling ordering an employer to pay 900 RMB in economic compensation to a former employee. The employer had dismissed the worker for allegedly fighting in the workshop, but failed to provide sufficient evidence to support the claim. The case highlights the burden of proof on employers in disciplinary dismissals and the consequences of failing to sign a written labor contract.

CASE BACKGROUND AND FACTS

The appellant, Hua X Eyeglasses (Shenzhen) Co., Ltd., referred to as Hua X Company, employed the respondent, Mr. Li, in its workshop in Southern China. The company terminated Mr. Li’s employment, citing a violation of factory rules. According to the company, Mr. Li engaged in a fight in the workshop, which constituted serious misconduct under its internal regulations.

Mr. Li disputed this account. He admitted to having an argument with his team leader over a leave request but denied any physical altercation. Following the dismissal, Mr. Li filed a claim for unpaid wages and economic compensation for wrongful termination. He also sought payment for the employer’s failure to sign a written labor contract, which entitled him to double wages under Chinese labor law.

The local labor arbitration and the first-instance court both ruled in favor of Mr. Li. The company appealed to the intermediate court in Southern China.

COURT PROCEEDINGS AND EVIDENCE

During the appeal, the court reviewed the facts as established in the first-instance trial. Both parties agreed on the basic circumstances of the employment relationship. The central issue was whether the company had legal grounds to dismiss Mr. Li.

The company argued that Mr. Li had fought in the workshop and claimed it had reported the incident to the police. However, the company did not submit any police report, incident record, or official documentation from the authorities to verify this claim. The only evidence it presented was an internal notice, which the company had drafted unilaterally. Mr. Li refused to acknowledge the validity of this document.

The court applied the rule on burden of proof in labor disputes. Under Article 6 of the Supreme People’s Court’s Provisions on Evidence in Civil Proceedings, the employer bears the burden of proving that a dismissal is lawful. Since Hua X Company failed to provide credible evidence of the alleged fight, the court rejected its version of events.

COURT FINDINGS AND JUDGMENT

The appellate court found that Mr. Li’s conduct—arguing with his team leader about leave—was inappropriate but did not constitute serious misconduct. The company did not demonstrate that this behavior caused significant disruption to management or reached the threshold of severe disciplinary violation.

The court held that the dismissal was unlawful. It also noted that the company claimed to have signed a written labor contract with Mr. Li but provided no evidence to support this assertion. As a result, the court upheld the first-instance ruling ordering the company to pay 900 RMB in economic compensation for wrongful termination. The court also rejected the company’s request to avoid paying double wages for the unsigned contract.

The judgment stated: “The original trial found the facts clearly, applied the law correctly, and handled the matter appropriately. It should be affirmed.” The appeal was dismissed, and the company was ordered to bear the appellate case acceptance fee of 10 RMB.

KEY LEGAL PRINCIPLES

In Chinese labor law, the employer bears the burden of proof when justifying a disciplinary dismissal. Vague allegations or internally created documents are insufficient. Employers must produce objective evidence, such as police reports or witness statements, to support claims of serious misconduct.

Failure to sign a written labor contract within one month of employment exposes the employer to liability for double wages. The employer must prove that a contract was signed; the employee does not need to prove its absence.

PRACTICAL INSIGHTS

Employers should maintain clear documentation when taking disciplinary action. Any allegation of serious misconduct must be supported by verifiable evidence. Relying on internal notices without independent corroboration is risky.

Employees who believe they were unfairly dismissed should preserve any evidence of their employment and the circumstances of termination. A timely claim for economic compensation and double wages can succeed if the employer fails to meet its legal obligations.

LEGAL REFERENCES

Supreme People’s Court, Provisions on Evidence in Civil Proceedings, Article 6
Civil Procedure Law of the People’s Republic of China, Article 153, Paragraph 1, Item 1
Labor Contract Law of the People’s Republic of China, Articles 39, 87

DISCLAIMER

This article is for informational purposes only and does not constitute legal advice. Readers should consult a qualified attorney for advice on specific legal matters.