Court Awards CNY 7804.60 in Unpaid Double Wage Labor Dispute
A court in Eastern China City has ruled that an employer must pay a former employee double wages for failing to sign a written labor contract, while rejecting claims for economic compensation and notice pay due to insufficient evidence of unlawful dismissal. The case involved a dispute over the existence of an employment relationship, unpaid wages, and social insurance contributions.
The plaintiff, Mr. Li, alleged he worked as a warehouse keeper for the defendant, MeiTex Textile Apparel Co., Ltd., from August 1, 2011, until January 30, 2012, at a monthly salary of 2,500 CNY, paid in cash. He stated that no written employment contract was signed and that the defendant did not enroll him in social insurance. After being orally informed of termination on January 30, 2012, Mr. Li applied for arbitration on February 7, 2012, but the arbitration committee failed to make a decision within the statutory time limit, prompting him to file a lawsuit.
During the hearing, Mr. Li provided product receipt and delivery notes bearing his signature as warehouse keeper, along with a registration receipt from the arbitration committee. The defendant denied any employment relationship, arguing that the arbitration committee’s failure to act confirmed the absence of a contractual link. However, the defendant did not submit payroll records, employee rosters, or other documents under its control to refute Mr. Li’s claims.
The court held that the evidence submitted by Mr. Li, including signed warehouse forms, corroborated his testimony and established a factual employment relationship. The court corrected Mr. Li’s start date to August 13, 2011, based on the documentary evidence, and confirmed the relationship lasted until January 30, 2012. Regarding the double wage claim, the court noted that the defendant had failed to sign a written contract within one month of employment, as required by the Labor Contract Law. Since neither party provided a clear standard wage, the court set the monthly salary at 70 percent of the claimed amount, or 1,750 CNY, and calculated the double wage difference for the period from September 13, 2011, to January 30, 2012, totaling 7,804.60 CNY.
The court rejected Mr. Li’s claims for economic compensation, notice pay, and compensation for social insurance. It found that Mr. Li had not presented evidence to prove that the defendant unlawfully terminated the employment relationship, such as a written notice or proof of dismissal without cause. As the burden of proof for unlawful termination lies with the employee, the court declined to award these amounts. On the social insurance issue, the court ruled that such matters fall under the jurisdiction of the social insurance administration and could not be adjudicated in civil proceedings.
This case underscores the legal obligations of employers in Eastern China City to execute written labor contracts within one month of hiring and to maintain proper wage records. When an employer fails to provide such documentation, courts may accept alternative evidence from employees, such as signed delivery notes, to establish an employment relationship. The decision also highlights that employees claiming unfair dismissal bear the burden of proof and should preserve any relevant communications or documents. For employers, the ruling serves as a reminder that non-compliance with contract and record-keeping requirements can result in significant financial liability.
Disclaimer: This article is for informational purposes only and does not constitute legal advice.