Court Rejects CNY 52,068 Labor Dispute Claims
A former worker who sought CNY 52,068 in unpaid wages, compensation, and annual leave pay had all claims dismissed by a court in Eastern China City. The plaintiff, Mr. Liu, had sued his former employer, Eastern China City Food Co., Ltd., for failing to sign a written labor contract, failing to pay social insurance, and not providing paid annual leave. The court found that Mr. Liu had voluntarily waived his rights to a contract and social insurance, and that he had already taken annual leave. The judgment underscores how written waivers and employer records can defeat common labor claims.
Mr. Liu worked as a processing operator at the company from June 2003. The parties never signed a written labor contract, and the company did not pay social insurance contributions for him. In November 2010, Mr. Liu left the company, stating he needed to go home for personal reasons and did not submit a formal resignation letter. He later claimed he was forced to resign because of the lack of a contract and social insurance. He filed a labor arbitration request in October 2011 seeking double wages for the unexecuted contract (CNY 20,000), economic compensation for termination (CNY 30,000), and annual leave pay (CNY 2,068). The arbitration committee rejected all claims, prompting Mr. Liu to bring the case to court.
During the trial, the company presented several pieces of evidence. It showed a notice dated August 23, 2008, requiring Mr. Liu to sign a labor contract by that date, which Mr. Liu had signed and fingerprinted. The company also produced a written commitment from Mr. Liu stating, I voluntarily choose not to sign a labor contract and do not require the company to pay social insurance or housing fund. To prove that annual leave was taken, the company submitted attendance records for four periods around Chinese New Year from 2008 to 2010, along with testimony from two employees who handled attendance, Ms. Song and Ms. Guan. A certificate from the company’s labor union confirmed that paid annual leave was provided during those years. Mr. Liu disputed the evidence, but the court found the documents and witness testimony credible and admitted them.
The court held that Mr. Liu had himself caused the absence of a written labor contract and the failure to pay social insurance. Because he voluntarily signed a commitment not to require a contract or insurance, the company could not be held liable for double wages under Article 82 of the Labor Contract Law. On the economic compensation claim, the court noted that Mr. Liu left the company on his own accord, stating he had personal matters to attend to. He did not prove that the company forced him to resign due to a breach of labor law. Therefore, the claim for severance pay was unfounded. Regarding annual leave, the company’s evidence demonstrated that Mr. Liu took his paid leave during the Chinese New Year holiday periods in 2008, 2009, and 2010, so no further annual leave pay was due.
The legal analysis focused on the principle that a party cannot benefit from its own voluntary waiver. Mr. Liu’s written commitment, although not a formal contract, showed that he knowingly declined the protection of a written agreement and social insurance. Under Chinese labor law, an employer must still actively offer a contract, but an employee’s clear refusal can excuse the employer from paying double wages. For economic compensation, voluntary resignation without a statutory cause does not trigger severance. The employer also successfully met its burden of proving that annual leave was granted, using attendance records and union documentation. The court applied the rule from the Several Provisions on Evidence in Civil Proceedings, which requires each party to prove the facts supporting its claims.
The case illustrates that employees who sign waivers or commitments forgoing statutory rights may later find those documents used against them in court. Employers should maintain clear records of contract offers, employee commitments, and attendance schedules. While the law generally protects workers, voluntary choices by an employee can limit liability. The court dismissed all of Mr. Liu’s claims, and he was ordered to pay the reduced court fee of CNY 5. The judgment is a reminder that both parties must carefully document their actions in the employment relationship.
Disclaimer: This article is for informational purposes only and does not constitute legal advice.