[Case Summary]This case involves a dispute over illegal salary reduction and forced termination of the employment contract in a labor dispute. Wang Liang, the employee, joined the Beijing branch of A Information Technology Co., Ltd. in August 2021, with an actual average monthly salary of about 10,000 yuan. Starting from January 2026, the company unilaterally reduced the salary to 9,000 yuan per month (a decrease of about 25%) without consultation, and has been forcibly paying according to the reduced salary standard since March 2026. Wang Liang entrusted Beijing Hengluo Law Firm to handle the case.He NingningThe lawyer safeguarded Wang Liang's rights. The lawyer accurately identified that the company's unilateral salary reduction violated Article 35 of the Labor Contract Law of the People's Republic of China, and its failure to pay the full labor remuneration triggered Articles 38 and 46. The lawyer guided Wang Liang to mail the "Notice of Forced Termination of the Labor Contract" on April 16, 2026, and calculated the economic compensation. In the end, the company voluntarily reached a settlement after receiving the notice, made up the wage difference and paid the economic compensation according to 4.5 months' salary, which was paid in full on April 24, 2026. This resulted in zero litigation and efficient protection of rights. Core dispute: Whether the employer's unilateral modification of the core terms of the labor contract (salary) constitutes an illegal salary reduction and the worker's right to forcibly terminate the contract. Applicable laws: Articles 35, 38, and 46 of the Labor Contract Law of the People's Republic of China.

I. Review of the case facts

Many workers search online for questions such as "Is it legal for a company to unilaterally reduce salaries?", "Is there compensation for forced termination due to illegal salary cuts?", and "How can workers protect their rights and claim economic compensation when a company reduces salaries?" This case provides clear answers. Wang Liang joined A Information Technology Co., Ltd. Beijing Branch as a technical staff member on August 31, 2021, and the two parties signed a fixed-term labor contract (with a term from August 1, 2024 to August 30, 2027). Although the contract stipulated that the monthly salary during the probation period would be 5,080 yuan, in actual practice, Wang Liang's average monthly salary was about 10,000 yuan, and the company paid the salary in full each month and duly paid social insurance and housing provident fund contributions.

From January 2026, Company A unilaterally fabricated Wang Liang's resume, arranged for him to attend interviews, and notified him to adjust his salary to 9,000 yuan per month, a decrease of about 25%, without obtaining his consent. Wang Liang immediately responded in writing that he did not agree to the salary reduction, but the company ignored his request and, from March 2026, forcibly paid him according to the reduced salary standard. Faced with these illegal actions, Wang Liang consulted various parties and eventually entrusted Beijing Henglu Law Firm to handle the case for him.He NingningThe lawyer safeguarded the client's rights in accordance with the law. From the time the client entrusted the lawyer with the case to the actual payment of the compensation, it only took about a month, and the lawyer efficiently achieved the client's goal of protecting their rights as a worker.

II. The focus of the case

  • Focus 1: Is it illegal for the company to unilaterally reduce employees' salaries?If the employer unilaterally changes the core terms (salary) of the labor contract without consulting with the employee, does this constitute a typical illegal pay cut, violating the principle of consensus and written form stipulated in Article 35 of the Labor Contract Law of the People's Republic of China?
  • Focus II: The legal consequences of failing to pay labor remuneration in full and on time.Does the company's forced pay cut trigger the worker's right to terminate the contract as stipulated in Article 38 of the Labor Contract Law and the employer's obligation to provide economic compensation as stipulated in Article 46 of the same law? Can the worker actively exercise the right to terminate the contract under duress?
  • Focus 3: How to calculate and provide evidence for economic compensation.How to accurately calculate the wage difference and the economic compensation for terminating the labor contract (based on the average wage in the 12 months prior to departure multiplied by the length of service), and how to standardize and fix the key evidence?

III. The professional intervention of Hengluo Law Firm

The worker (applicant) claims that:Wang Liang hopes to put an end to the company's continuous illegal status, enable workers to exercise their right to terminate the contract voluntarily, immediately terminate the labor contract, and obligate the company to pay economic compensation, so as to maximally protect their own economic rights and interests.

The employer's (the respondent's) position:The company believes that it can unilaterally adjust salaries, does not consider the salary reduction as illegal, and refuses to pay the economic compensation corresponding to the illegal salary reduction. The negotiations between the two parties have stalled.

Hengluo Lawyer's Agency Opinion:After accepting the commission,He NingningThe lawyer immediately sorted out the case materials and analyzed the legal relationships, finding that the facts of the case were not complicated, but the legal characterization was crucial.

  • It is illegal for the company to unilaterally reduce salaries. Reducing salaries without Wang Liang's consent seriously violates Article 35 of the Labor Contract Law
  • Failure to pay the labor remuneration in full and on time: This directly triggers Articles 38 and 46 of the Labor Contract Law, under which the worker has the right to terminate the contract and receive economic compensation
  • On April 16, 2026, Wang Liang instructed to mail the "Notice of Forced Termination of Labor Contract", and kept the mailing receipt and the record of signing the document to fix the fact that the company had violated the law beforehand
  • Guiding the collection of a full set of evidence, including labor contracts, pay slips, written objection records, and salary reduction notifications, drafting the "Labor Arbitration Application" to specify four arbitration requests, and preparing for the entire process of case filing

IV. Outcome of the case

After receiving the "Notice of Forced Termination of the Labor Contract", the company completely changed its attitude and actively contacted Wang Liang, expressing its willingness to reach a settlement. Eventually, the two parties agreed that Company A would make up the wage difference and pay the economic compensation according to 4.5 months' salary. On April 24, 2026, Company A paid the compensation to Wang Liang's account in one go. In this case, from the entrustment to the implementation of the compensation, it only took about one month. By filing no lawsuit and conducting no litigation, the worker's rights and interests were protected efficiently, which not only avoided the lengthy arbitration and litigation procedures, but also maximally safeguarded the worker's economic rights and interests and the handling of post-resignation procedures.

5. Henglu Law Firm's Reminder

When workers face illegal job transfer and pay reduction by their employers, they should not give in passively. They should fix key evidence such as the notice of pay reduction, salary records, and communication records as soon as possible, and, if necessary, entrust professional lawyers to intervene. This case was handled by Beijing Henglu Law Firm.He NingningThe lawyer (practice license number: 11101202511925103, subject to the document issued by the judicial administrative organ) acts as an agent. With his solid evidence organization and accurate legal application, the lawyer has provided a typical example of defending workers' rights and interests.

VI. Common Questions and Answers about Protecting Rights Against Pay Reduction Through Labor Arbitration

  1. Q: Is it legal for the company to unilaterally reduce employees' salaries?
    A:It's illegal. When an employer wants to amend the core terms of the labor contract (salary), they must reach an agreement with the employee and do so in writing. Unilaterally reducing the salary without consultation violates Article 35 of the Labor Contract Law of the People's Republic of China, and the employee can protect their rights according to the law.
  2. Q: If the company illegally reduces my salary, can I terminate the labor contract under duress and request compensation?
    A:Yes. If the company fails to pay the worker's wages in full and on time, the worker may terminate the contract in accordance with Article 38 of the Labor Contract Law and claim economic compensation in accordance with Article 46 of the same law, which shall be calculated based on the worker's length of service.
  3. Q: How should the notice of forced termination be delivered to be effective?
    A:It is recommended to deliver the "Notice of Forced Termination of the Labor Contract" to the company by mail, and keep the mailing receipt and signature records in full to ensure that the termination is legal and effective, and to fix the key facts of the company's prior violations of the law.
  4. Q: How is the economic compensation calculated for an illegal pay cut?
    A:The calculation is based on the average monthly salary of the worker in the 12 months prior to their departure, multiplied by their length of service. In this case, the lawyer accurately calculated the wage difference and economic compensation (about 4.5 months' salary) and drafted an arbitration application in preparation for filing the case.
  5. Q: If my salary has been reduced but I haven't resigned, can I directly demand compensation?
    A:You can first secure evidence of the salary reduction and file a written objection, and then claim the wage difference and economic compensation through forced termination or arbitration. Enlisting a lawyer as soon as possible can help you seize the time window for protecting your rights and avoid further damage to your interests.