[Case Summary]This case involves a foreign-related labor dispute. M*, who is a foreign national, obtained an employment permit and joined a certain technology company in Beijing on October 26, 2020. However, the company has been consistently delaying the payment of salaries and bonuses and failing to pay social insurance and housing provident fund based on the actual salary base. As a result, M* terminated the labor contract on May 15, 2023 and sought compensation. M* entrusted Beijing Henglu Law Firm to handle the case.Feng NaThe lawyer represented the client in the arbitration. The lawyer argued that M* meets the qualifications to be a subject of a legal labor relationship and submitted arbitration claims including economic compensation, wage differences, unpaid annual leave wages, and year-end bonuses. The arbitration tribunal accepted the evidence of wage standards and bonuses, and ruled that the company should pay a total of over 680,000 yuan in economic compensation, wage differences, unpaid annual leave wages, and year-end bonuses. The core disputes include the identification of the labor relationship of foreign employees and the calculation of various compensations. Applicable laws: relevant provisions of the Labor Dispute Mediation and Arbitration Law and regulations on the employment management of foreigners in China.

I. Review of the Case Facts

"I'm a foreigner. Can I seek legal protection if I'm owed unpaid wages while working in China?" With the increasing cross-border talent mobility, this is a common question among foreign workers. Related keywords include "labor arbitration for foreign employees", "the validity of foreigner's employment permits", "can I recover unpaid year-end bonuses", and "how to calculate unpaid annual leave wages". M*, a foreign national, joined a Beijing-based technology company on October 26, 2020 and signed a labor contract. However, due to the company's long-term delays in paying salaries and bonuses, as well as its failure to pay social insurance and housing provident fund based on actual salary base, M* terminated the labor contract with the company on May 15, 2023 and demanded that the company settle the wage arrears and unpaid annual leave wages.

Due to the failure of the two parties to reach an agreement, M某 entrusted Beijing Henglu Law Firm to handle the case.Feng NaThe lawyer filed a labor arbitration on behalf of M* to safeguard his rights. Foreigners working in China must obtain an employment certificate and a residence permit, and are protected by Chinese law. M* obtained the employment certificate applied for by the technology company on October 26, 2020, and thus had the qualifications to establish a labor relationship with the company. He was in a legal labor relationship with the company and enjoyed the rights and benefits of a worker.

II. The focus of the case

  • Focus 1: Whether there is a legal labor relationship between foreign employees and their employers, and whether they can claim various compensations.It is necessary to confirm the validity of M's employment permit and the qualification of the main body of the labor relationship.
  • Focus II: The specific determination of wage standards, year-end bonuses, wage differences, and unpaid annual leave wages.The company disputes the time of establishing the labor relationship, the wage standard, the year-end bonus, and the wage difference, which need to be verified based on the evidence.

III. The professional intervention of Hengluo Law Firm

The applicant (M某) claimed that:M* claimed that the technology company had long been in arrears with salaries and bonuses, and had failed to pay social insurance and housing provident fund in full. After terminating the labor contract, he demanded that the company settle the relevant payments and filed an arbitration request: 1. Pay an economic compensation of 300,000 yuan for the termination of the labor contract; 2. Pay a wage difference of 412,322 yuan from September 1, 2022 to May 15, 2023; 3. Pay unpaid annual leave wages of 91,954 yuan from October 26, 2020 to May 15, 2023; 4. Pay year-end bonuses of 287,907 yuan from October 26, 2021 to May 15, 2023.

The respondent (the technology company) argued that:The company disputes the time when the two parties established a labor relationship, the wage standard, the year-end bonus, and the issue of wage differences, and denies some of the requests.

Hengluo Lawyer's Agency Opinion:Feng NaThe lawyer reviewed the case and evidence to quickly determine the rights that the client could claim: M* holds an employment permit and is qualified to establish a legal labor relationship; regarding the wage standard, the arbitration tribunal accepted our claim that the evidence was basically consistent; regarding the year-end bonus, the Labor Contract clearly states that the annual bonus is 240,000 yuan, and the WeChat chat records recognized by the company still show the bonus amount. The company failed to provide evidence of having paid the bonus, so it should be determined that the bonus has not been paid; regarding the annual leave, the company failed to provide evidence of the leave situation and acknowledged that six days of leave had not been taken. Therefore, the company should pay the unpaid annual leave wages.

IV. Outcome of the case

The arbitration tribunal found that the parties established a labor relationship on January 14, 2021; regarding the wage standard, the arbitration tribunal accepted the standard put forward by our side. Regarding the year-end bonus, the arbitration committee determined that the Labor Contract clearly stipulated an annual bonus of 240,000 yuan, and the WeChat records recognized by the company also showed that there was still a bonus. The company failed to submit evidence to prove that it had paid the bonus according to the agreement, so the year-end bonus was determined according to the time of establishing the labor relationship and the normal attendance situation. Regarding the annual leave, the technology company, as the employing unit, failed to provide evidence of the leave situation, and acknowledged that there were 6 days of annual leave that had not been taken. Therefore, the company should pay the unpaid annual leave wages.

The ruling result: According to the relevant provisions of the Labor Dispute Mediation and Arbitration Law, it is ruled that Beijing * Technology Co., Ltd. shall pay M * the economic compensation for the termination of the labor contract11,154.5 yuanThe wage difference from September 1, 2022 to May 15, 2023290373.88 yuanThe unpaid annual leave salary from January 14, 2021 to May 15, 202339,316.2 yuanAnnual bonuses from January 14, 2021 to May 15, 2023244293.69 yuanThe total amount is as above.More than 680,000 yuanM* successfully protected his rights and interests.

5. Hengluo Law Firm's Advice

Foreign employees who establish labor relations with Chinese employers are protected by Chinese law, but they should apply for employment permits in a timely manner. Otherwise, it will be difficult to recognize their legal labor relations and may constitute illegal employment. When encountering the situation of "what to do if a foreign employee is owed wages", it is recommended to keep evidence such as contracts, pay slips, and WeChat records, and consult a professional labor lawyer. This case is handled by Beijing Hengluo Law Firm.Feng NaThe lawyer (practice license number: 11101202211562923, subject to the document issued by the judicial administrative organ) acted on behalf of the client, relying on the relevant provisions on foreign-related labor, and helped the client obtain compensation of more than 680,000 yuan.

VI. Common Questions and Answers about Labor Disputes Involving Foreign Employees

  1. Q: If a foreigner works in China without obtaining an employment certificate, can this be considered an employment relationship?
    A: It's difficult. Foreigners who have not obtained employment permits in accordance with the law find it hard to establish legal labor relations with Chinese units, which may constitute illegal employment. In this case, M * holds an employment permit, so the labor relationship is protected.
  2. Q: Can foreign employees claim year-end bonuses and unpaid annual leave wages?
    A: Yes. As long as it is stipulated in the labor contract or confirmed by the company's regulations, and the employee has attended work regularly, and the company has not provided evidence of having paid the wages, the arbitration can support it. In this case, the year-end bonus and the salary for annual leave will be confirmed.
  3. Q: The company has been delaying salaries for a long time. How can foreign employees terminate their contracts and obtain compensation?
    A: The employer can legally notify the employee to terminate the contract and claim economic compensation; in this case, M* terminated the contract with the employer due to unpaid wages, and received more than 110,000 yuan in economic compensation.
  4. Q: If the salary base and the actual amount received do not match, can I claim the difference?
    A: Yes. If the company fails to fulfill its obligations according to the actual wage base, the worker can claim the difference. In this case, the wage difference was supported and the worker received more than 290,000 yuan in compensation.
  5. Q: What evidence is needed for foreign employees to protect their rights?
    A: Employment permits, labor contracts, bank transaction records of salaries, social security and housing provident fund records, WeChat chat records, attendance and leave records, etc. The lawyer in this case won the case based on the above chain of evidence.