Labour Dispute Over Wages and Compensation – CNY 8239.7 Claim Dismissed
A Chinese court has dismissed a labour dispute claim brought by an employee against a beauty and hair company, finding that the plaintiff failed to prove an employment relationship existed between the parties. The case involved claims for unpaid wages, double pay for the lack of a written contract, compensation for wrongful termination, and unpaid social insurance contributions, totaling CNY 8239.7. The court ruled that the evidence presented did not establish that the defendant was the plaintiff’s employer.
The plaintiff, Mr. Wang, alleged that he began working at a store called “Dupin Jin Mou Mou 004” in July 2009, which he claimed was operated by the defendant, a beauty and hair company based in Eastern China City. According to Mr. Wang, the defendant terminated his contract unilaterally in June 2011, failed to pay his May 2011 salary of CNY 1622, never signed a written employment contract, and did not contribute to social insurance. He also sought double the statutory economic compensation for alleged wrongful dismissal, amounting to CNY 3000, and social insurance contributions of CNY 617.7. The defendant denied any employment relationship, arguing that Mr. Wang actually worked for a separate entity, Lin’an Jin Mou Mou Beauty Parlour, owned by a third party, Mr. Ding. The defendant further asserted that a promise letter signed by its legal representative was merely a gesture during business negotiations and that the wages had already been paid by Mr. Ding.
During the hearing, Mr. Wang submitted several pieces of evidence, including a copy of a cooperation agreement between the defendant and Mr. Ding, a promise letter dated June 2011 signed by the defendant’s legal representative, Mr. Xu, and bank transaction records showing deposits into his account. He also presented the arbitration award from the Lin’an Labour Dispute Arbitration Committee. The defendant challenged the cooperation agreement as unsigned and unenforceable, and argued that the bank records did not prove the defendant was the payer. The court acknowledged the promise letter but noted it only documented an agreement to pay wages for certain months, not an employment relationship.
The court found that the address where Mr. Wang claimed to have worked was the registered business address of Lin’an Jin Mou Mou Beauty Parlour, whose owner was Mr. Ding, not the defendant. The cooperation agreement, even if valid on its face, lacked signatures and evidence of actual performance. The court held that the promise letter, while evidencing a commitment to pay wages, could not alone establish that the defendant was Mr. Wang’s employer. Consequently, the court concluded that Mr. Wang had not met his burden of proof under Article 64 of the Civil Procedure Law.
Legally, the court emphasised that the plaintiff bore the responsibility to prove the existence of an employment relationship. The mere possibility of a partnership between the defendant and Mr. Ding did not satisfy this requirement without concrete evidence of joint operations or actual employment by the defendant. The court noted that the promise letter might support a separate civil claim for payment of wages, but it could not serve as the basis for a labour law claim. Therefore, the court rejected Mr. Wang’s requests for double pay, compensation, and social insurance contributions tied to an employment relationship.
In summary, the court dismissed Mr. Wang’s lawsuit in its entirety. The ruling underscores the critical importance of clear evidence when asserting an employment relationship, particularly when a third-party entity is involved in the workplace. Employees should ensure that their employment contracts, pay records, and other documentation clearly identify their actual employer. Parties who wish to pursue unpaid wages outside an employment context may still do so through ordinary civil proceedings, as the court noted in its judgment.
Disclaimer: This article is for informational purposes only and does not constitute legal advice.