[Case Summary]This case is a labor dispute arbitration case. Liu * joined the magazine company in 2011 and worked diligently for more than ten years, eventually being promoted to director. Before the salary reduction, his average monthly salary was 31,670.33 yuan. In June 2024, the magazine company unilaterally reduced his salary to 9,500 yuan, and in February 2025, it further reduced it to 5,000 yuan, while withholding his performance bonuses. After Liu * was forced to terminate the labor contract, he filed for arbitration, but the magazine company instead filed a counterclaim for nearly one million yuan. Liu * entrusted the Beijing Henglu Law Firm to handle the case.Li YonghuiThe lawyer represented the client, and the arbitration committee adopted the core opinion. All the counter-applications of the employer were rejected, and the worker received nearly one million yuan in compensation, including wage arrears, commissions, performance bonuses, economic compensation, and annual leave pay. The core disputes included the legality of unilateral salary reductions, the basis for paying commissions and performance bonuses, and the authenticity of the counter-applications. The applicable legal provisions are Articles 38 and 47 of the Labor Contract Law of the People's Republic of China.

I. Review of the Case Facts

Old employees are often subject to unilateral salary cuts and withholding of wage and performance bonuses by companies, and frequently search for terms like "Is it legal for companies to unilaterally reduce salaries?", "Can I claim compensation if I'm forced to terminate the labor contract?", and "How to protect rights when performance bonuses are deducted". In November 2011, Liu *joined the *XXX* Magazine, was promoted to Director of the Journalist Communication and Network Department after passing the probation period in 2012, and signed a non-fixed-term labor contract in 2016. Before the salary cut, Liu's average monthly salary over the previous 12 months reached 31,670.33 yuan. However, in June 2024, the magazine unilaterally reduced his salary to 9,500 yuan per month, and in February 2025, it further lowered it to 5,000 yuan per month, while withholding journal distribution bonuses and performance incentives from 2024 to 2025. Despite multiple failed negotiations, Liu served a "Notice of Forced Termination of the Labor Contract" on August 13, 2025, and initiated arbitration proceedings. Surprisingly, the magazine denied infringement and even counter-sued, claiming that Liu had committed absenteeism, seeking nearly one million yuan in compensation for recovery losses and demanding the return of meal subsidies. Thus, Liu transformed from a "salary claimant" to a "debtor being pursued for repayment".

II. The focus of the case

  • Focus 1: Is it legal for employers to unilaterally reduce salaries?Adjusting the salary constitutes an amendment to the labor contract and requires the consent of both parties. Otherwise, it shall be deemed invalid.
  • Focus 2: How to determine the basis for paying commissions and performance bonuses?Do the changes to the terms of the plan bind the workers, and is the non-receipt of the payment an exempting circumstance?
  • Focus 3: Is the unit's counter-application truly valid?Is there any evidence to support the claims of absenteeism and dereliction of duty at work?

III. The professional intervention of Hengluo Law Firm

The worker (Liu *) claimed that:Claims to confirm the labor relationship, pay the wage difference of 348705.09 yuan, the commission of 71055 yuan, the performance bonus of 13972 yuan, the cover commission of 32400 yuan, the economic compensation of 886769 yuan, and the unpaid annual leave wage of 133960.5 yuan.

The employer's (the magazine company's) position is as follows:Deny infringement, and counter-claim that Liu * was absent from work and negligent in his duties, causing losses of nearly one million yuan, and demand the return of meal subsidies. The intention is to use high-value claims to put pressure on the other party and offset the compensation they deserve.

Legal Opinion by Hengluo Law Firm:

  • \n Fix the starting point of the labor relationship, strive for the recognition of the labor relationship from July 7, 2012, and lay a foundation for the calculation of economic compensation; if the unit fails to pay the compensation in full in accordance with Article 38 of the Labor Contract Law, it shall pay economic compensation;
  • Seize the core of the pay cut and clearly point out that the salary adjustment must be agreed upon by both parties. The magazine company has no evidence to prove that an agreement has been reached, so the unilateral pay cut is invalid and the company must compensate the employees according to the original standard;
  • Break down the tasks one by one. The commission should be supplemented to 10 yuan per book according to the plan, and the performance bonus should be paid in full. We should strive to claim the cover commission as much as possible.
  • In response to the counter-application, submit a sick leave certificate and a signed leave approval form to refute the allegation of absenteeism, and point out that the failure to recover the payment is due to the buyer's breach of contract and that debt collection is not the legal duty of the sales department.

IV. Outcome of the case

The Arbitration Commission adopted the arbitration award after hearing the caseLi YonghuiThe lawyer's core opinion is that the magazine company's failure to pay the worker's full salary meets the circumstances for the worker to unilaterally terminate the contract and the company should pay economic compensation; the unilateral salary reduction is invalid and the wage difference should be made up; the performance-based bonus should be paid according to the law; the magazine company's counter-claim was rejected due to lack of evidence. In the end, the worker received a total compensation of nearly one million yuan, including wage difference, commission, performance-based bonus, economic compensation, and unpaid annual leave salary, and his legal rights and interests were fully protected.

5. Hengluo Law Firm's Advice

Administrative litigation and administrative reconsideration are highly specialized, with strict procedural deadlines and evidentiary requirements. It is recommended that when your rights are infringed, you should hire a professional lawyer as soon as possible to help you identify administrative violations, gather evidence, and draft legal documents. In this case, Li Yonghui, a lawyer from Beijing Henglu Law Firm (practice license number: 11101199611955812, subject to the document issued by the judicial administrative authority), acted as the agent. Relying on his accurate understanding of the legal norms and practical adjudication rules in the relevant field, he helped the client achieve a favorable outcome.

VI. Common Questions and Answers about Cases Involving Employees Seeking Redress for Pay Cuts

  1. Q: Is it legal for a company to unilaterally reduce employees' salaries?
    A: Adjusting the salary constitutes a change to the content of the labor contract and requires the consent of the employee. Otherwise, the unilateral salary reduction will be invalid, and the employer should make up the difference according to the original standard.
  2. Q: Can I get compensation if I'm forced to terminate my labor contract?
    A: If the employer fails to pay the remuneration in full, the worker may terminate the contract in accordance with Article 38 of the Labor Contract Law and claim economic compensation.
  3. Q: How can I protect my rights if my performance evaluation is deducted?
    A: Collect evidence such as the commission reward plan, payroll, and bank statements, and claim compensation according to the agreed standards. If necessary, apply for arbitration.
  4. Q: What should I do if my employer countersues and files a claim against me?
    A: Actively provide evidence to refute false accusations, such as sick leave and personal leave approval records and evidence of performing duties. If the unit's claims lack a basis, it will be difficult to gain support for them.
  5. Q: How can labor lawyers in Beijing help employees protect their rights and interests?
    A: Lawyers can systematically sort out labor relations, wage standards, and the basis for calculating various requests, assert their rights directly, and refute the employer's counter-claims.