Court Orders Company to Pay Security Guard Overtime of 14,569 Yuan in China Labor Dispute

Court Orders Company to Pay Security Guard Overtime of 14,569 Yuan in China Labor Dispute

Case Overview
A civil court in Eastern China ruled that a water conservancy construction company must pay a former security guard 14,569 yuan in overtime compensation for work performed between October 2008 and August 2010. The court found that the company failed to pay statutory overtime rates for rest day work and certain public holidays, despite the employee working a rotating shift schedule of eight hours per day, seven days per week. The judgment rejected the company’s claim that no overtime was owed, highlighting key principles under Chinese labor law regarding overtime calculation for security personnel.

Case Background and Facts
The plaintiff, a water conservancy construction company based in Eastern China, hired the defendant, Mr. Li, as a security guard on October 3, 2008. Mr. Li was assigned to work at the gatehouse of a former government office building, where his duties included managing vehicle access and visitor registration. His work schedule consisted of a three-shift rotation system, with each shift lasting eight hours. Critically, Mr. Li worked seven days per week, with no weekly rest days. His monthly salary was 800 yuan until April 2010, when it increased to 810 yuan.

During his employment, Mr. Li repeatedly requested a written labor contract and social insurance coverage, including medical and pension insurance, but the company declined. In August 2010, the company asked Mr. Li to sign a duty agreement that he believed violated labor laws. After he refused, the company effectively terminated his employment on September 11, 2010. Mr. Li then filed for arbitration, seeking overtime pay for public holidays and extended working hours, as well as high-temperature subsidies for 2009 and 2010.

Court Proceedings and Evidence
The case began when the company challenged an arbitration award issued on November 10, 2010, which ordered it to pay Mr. Li 11,536.51 yuan in overtime compensation. The company argued that the security guard position operated on a reasonable rotating shift system and that it had paid wages on time, including additional holiday subsidies. The company claimed that its work schedule was standard for the security industry in the region.

Mr. Li countered that he worked on all public holidays, including New Year’s Day, Qingming Festival, Labor Day, Dragon Boat Festival, and Mid-Autumn Festival, without receiving overtime pay. He presented evidence that the company only granted him three days off for National Day in 2009, three days for Spring Festival in 2009, and four days for Spring Festival in 2010. The court reviewed the arbitration decision, witness statements, and written notices submitted by both parties.

Court Findings and Judgment
The court determined that Mr. Li worked 56 hours per week (8 hours per day, 7 days per week), exceeding the standard 40-hour workweek mandated by the State Council’s Regulations on Working Hours for Employees. For the period from October 2008 to March 2010, the court calculated rest day overtime at 10,593 yuan, based on a monthly salary of 800 yuan. For April 2010 to August 2010, the court calculated an additional 2,979 yuan based on the increased salary of 810 yuan, totaling 13,572 yuan for rest day overtime.

Regarding public holiday overtime, the court noted that Mr. Li had already received some days off for National Day and Spring Festival. However, the company failed to pay overtime for other statutory holidays. The court awarded 662 yuan for the period from October 2008 to March 2010 and 335 yuan for April 2010 to August 2010, totaling 997 yuan. The combined overtime award was 14,569 yuan.

The court rejected Mr. Li’s claim for high-temperature subsidies, finding that he worked indoors as a non-high-temperature worker. Under Guangdong provincial guidance, such subsidies are voluntary and subject to employer-employee negotiation, not mandatory.

Key Legal Principles
The court applied the principle that employees working more than 40 hours per week are entitled to overtime pay at 200% of their regular hourly wage for rest day work. For statutory public holidays, overtime is calculated at 300% of the regular wage. The court emphasized that employers bear the burden of proving compliance with wage and hour laws. When the company failed to produce wage records for the period before April 2009, the court accepted Mr. Li’s claimed salary of 800 yuan per month.

Practical Insights
This case illustrates that rotating shift schedules do not exempt employers from overtime obligations under Chinese labor law. Even in industries like security where continuous coverage is needed, employers must either provide weekly rest days or pay overtime at the statutory rates. Employers should maintain accurate wage and attendance records, as failure to do so may result in the court accepting the employee’s version of facts. The case also shows that public holiday overtime must be paid even if the employee receives some days off, unless the employer can prove full compliance with holiday leave requirements.

Legal References
Labor Law of the People’s Republic of China, Article 44
State Council Regulations on Working Hours for Employees, Article 3
National Annual Holidays and Memorial Days Holiday Measures (2007 Revision), Article 2
Civil Procedure Law of the People’s Republic of China (2007), Articles 7, 64(1), and 128

Disclaimer
This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for specific legal matters.