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Employment Dispute: Employee Awarded $4,500 for Unlawful Dismissal During Medical Leave

All Real CasesMay 30, 2026 4 min read

Employment Dispute: Employee Awarded $4,500 for Unlawful Dismissal During Medical Leave

Case Overview

A civil court in Eastern China ruled on a labor dispute between an employee, Mr. Ding, and his employer, a technology company. The court found that the company unlawfully terminated Mr. Ding while he was on medical leave for a serious illness. The employer was ordered to pay compensation for unlawful dismissal and unpaid annual leave, while most other claims for overtime wages, medical expenses, and damages were denied.

Case Background and Facts

Mr. Ding began working for the defendant company in November 2008 as a casting administrator. His monthly salary was 8,100 yuan, which included a housing allowance. The employment contract was for a fixed term from December 2008 to November 2011. In June 2010, Mr. Ding suffered a sudden health crisis at work, experiencing partial body paralysis. He was diagnosed with a cerebral infarction and high cholesterol. After hospitalization, his doctor recommended rest. However, when Mr. Ding attempted to return to work, he was refused entry. He later discovered that the company had posted a notice on June 25, 2010, declaring that he had been treated as having voluntarily resigned due to three consecutive days of unexcused absence. Mr. Ding alleged that the company’s security personnel physically removed him from the premises, causing further injury. He sought reinstatement and various forms of compensation through labor arbitration, but was dissatisfied with the result, leading to this court action.

Court Proceedings and Evidence

The court reviewed the employment contract, wage records, and the company’s termination notice. Both parties attended the hearing. Mr. Ding presented his claims for overtime pay, annual leave compensation, unpaid wages, medical fees, and damages for alleged assault. The company argued that it had properly paid all wages and that the termination was justified based on Mr. Ding’s absence. The court examined wage statements from April 2009 to June 2010, which Mr. Ding confirmed as accurate. These records showed that the company had paid overtime wages in full. The court also considered the timing of Mr. Ding’s illness and the company’s termination decision.

Court Findings and Judgment

The court held that the company unlawfully terminated Mr. Ding. Under Chinese labor law, an employer cannot dismiss an employee who is within the statutory medical treatment period for an illness. The company’s claim of voluntary resignation was not supported by evidence. Because Mr. Ding requested both reinstatement and compensation, the court determined that awarding compensation was more practical given the breakdown in the employment relationship and Mr. Ding’s health condition. The court calculated the compensation for unlawful dismissal as two months of salary for each year of service, totaling 32,400 yuan. The court also ordered the company to pay 4,050 yuan for unpaid annual leave for 2009 and 2010. All other claims were rejected. The court found no evidence of unpaid overtime, as wage records showed full payment. Claims for June and July 2010 wages were dismissed because June wages were already paid and Mr. Ding did not work in July. Social insurance disputes were deemed outside the court’s jurisdiction. Claims for medical expenses, damaged clothing, and emotional distress were excluded from this labor case.

Key Legal Principles

This case illustrates the principle that an employer cannot terminate an employee during a legally protected medical treatment period. The burden of proof for a lawful dismissal rests with the employer. When an employer fails to prove a valid reason for termination, the dismissal is unlawful. Employees have the right to choose between reinstatement or compensation. Courts may award compensation when reinstatement is impractical. Additionally, employers must provide annual leave or pay compensation for unused leave. Employees bear the burden of proving overtime work, and accurate wage records can defeat overtime claims.

Practical Insights

Employers must ensure that any termination decision complies with legal protections for employees on medical leave. Terminating a worker during a protected period, even if the employee is absent, can result in significant financial penalties. Maintaining clear and accurate wage records is essential for defending against overtime claims. Employees should be aware that claims for personal injury or property damage arising from an employment dispute may need to be pursued in separate legal proceedings, not within a labor case. Social insurance disputes are typically handled by administrative agencies, not courts.

Legal References

Labor Law of the People’s Republic of China, Article 25
Labor Contract Law of the People’s Republic of China, Articles 40, 47(1), 87
Regulations on Paid Annual Leave for Employees, Articles 3(1), 5(1)
Civil Procedure Law of the People’s Republic of China (2007), Article 64(1)

Disclaimer

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

This article is rewritten from public court documents for general reading only. It does not constitute legal advice. Consult a qualified attorney for specific legal matters.

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