Court Awards CNY 25,371 in Unpaid Wages and Penalties
A labor dispute over unpaid wages, double pay for failure to sign a written contract, and compensation for wrongful termination has been resolved in Eastern China City. The court ruled in favor of the employee, granting a total award of CNY 25,371.43. The case highlights the legal obligations of employers to provide written contracts and proper compensation upon dismissal.
The plaintiff, Mr. Li, worked as an engineer for a surface treatment company in Southern China City. He claimed he started work on December 11, 2010, earning a monthly salary of CNY 6,000. The company never signed a written employment contract with him or enrolled him in social insurance. Mr. Li alleged he was forced to work over 12 hours daily and was abruptly terminated on April 12, 2011, after a workplace incident involving contaminated silver solution. He sought unpaid wages for March and April 2011, double wages for the period without a contract, and compensation for unlawful dismissal.
During the hearing, the court examined evidence including Mr. Li’s employee badge, pay slips, and the arbitration award from the local labor arbitration committee. The defendant company argued that Mr. Li committed a serious error causing losses of over CNY 100,000 and that the termination was lawful. The company also disputed the employment start date and the amount of wages claimed. Mr. Li’s representative attended, and both sides presented their arguments.
The court found that the defendant company was incorporated on January 17, 2011, and could not have employed Mr. Li before that date. Therefore, it rejected his claim that employment began in December 2010. Regarding wages, the court held that the employer bore the burden of proving any reduction in salary, but failed to do so. The court confirmed Mr. Li’s monthly salary of CNY 6,000 and calculated his March wage at CNY 6,000 and April wage at CNY 2,400.
Under Article 82 of the Labor Contract Law, the employer was required to pay double wages for the period after the first month without a written contract. The court awarded double wages for the period from February 17, 2011, totaling CNY 19,371.43, including CNY 2,571.43 for the February gap and CNY 12,000 for March plus CNY 4,800 for April. Additionally, because the company failed to prove lawful grounds for termination, the court ordered compensation of CNY 6,000 under Articles 47 and 87 of the same law.
The court dismissed Mr. Li’s request for social insurance contributions, stating that such matters fall outside its jurisdiction. The ruling serves as a reminder that employers must sign written contracts and provide clear evidence when dismissing employees for cause. Failure to do so can result in significant financial penalties. The company was also ordered to bear the court fee of CNY 10.
Disclaimer: This article is for informational purposes only and does not constitute legal advice.