[Case Summary]This case involves a labor dispute. Fan * joined XX Co., Ltd. as a marketing supervisor on June 1, 2017, and signed a non-fixed-term labor contract. On June 6, 2023, the company unilaterally terminated the contract on the grounds that Fan * had made excessive remarks in the company group and seriously violated the company's rules and regulations. Fan * entrusted Beijing Henglu Law Firm to handle the case.Feng NaThe lawyer filed a labor arbitration, with the core dispute being whether the employer's termination was illegal and whether compensation should be paid. The applicable laws and regulations include Article 30, Article 47, and Article 87 of the Labor Contract Law of the People's Republic of China, Article 5 of the Regulations on Paid Annual Leave for Employees, and Article 6 and Article 42 Paragraph 4 of the Labor Dispute Mediation and Arbitration Law of the People's Republic of China. The arbitration award ordered the company to pay compensation of 281,785.66 yuan for the illegal termination.

I. Review of the Case Facts

When dealing with illegal terminations, people often search for terms like "how much compensation is due for arbitrary dismissal by the company", "how to determine a serious violation of company rules and regulations", "calculation of compensation for illegal terminations", and "arbitration time limit for unpaid annual leave wages". On June 1, 2017, Fan * joined XX Co., Ltd. as a marketing supervisor and signed three labor contracts, the last of which was a non-fixed-term labor contract with a monthly salary of 7,000 yuan plus commission. In 2023, when the second contract expired, the company explicitly stated that it did not agree to renew the contract, and Fan * proposed compensation. The company agreed to renew the contract. On June 6, 2023, the company sent Fan * a notice of unilateral termination of the labor contract, citing that Fan * had posted extreme remarks in the company group, which seriously affected the company's reputation and labor relations and constituted a serious violation of company rules and regulations. To protect his rights, Fan * entrusted Beijing Henglu Law Firm to handle the case for him.Feng NaThe lawyer filed a labor arbitration case.

II. The focus of the case

  • Focus 1: Does the company's unilateral termination constitute an illegal termination?The lawyer argued that the company's claim of "serious violation of rules and regulations" lacked factual basis, and that both the termination procedure and the substantive content were illegal.
  • Focus 2: How to calculate the compensation for illegal termination of employment.It shall be calculated based on twice the standard of economic compensation, taking into account the employee's length of service and monthly salary.
  • Focus 3: Wage differences and requests for unpaid annual leave wages.The lawyer also claimed the wage difference for the corresponding period and the unpaid annual leave wages.

III. The professional intervention of Hengluo Law Firm

The applicant (Fan *) claimed that:Fan * requests the respondent to pay: compensation for unlawful termination of the labor contract of 281,785.66 yuan; wages from June 1 to June 6, 2023 of 3,986.36 yuan; unpaid annual leave wages from January 1, 2022 to June 6, 2023 of 9,965.89 yuan; and overtime wages on rest days from June 6, 2021 to June 6, 2023 of 207,290.6 yuan.

The respondent (the company) argued that:The company stated that it disagrees with our application request and alleges that Fan * has seriously violated the company's rules and regulations.

Hengluo Lawyer's Agency Opinion:Feng NaAfter receiving the client's mandate, the lawyer immediately began the representation work, communicating with the client, listing the issues and materials, and providing proper guidance. The lawyer believes that the respondent's claim that Fan * seriously violated the company's rules and regulations lacks factual basis, and the applicant also does not recognize the reason for the termination; as an employer, when terminating the labor contract, the employer should ensure that the procedures and substantive provisions are legal. If the employer terminates the labor contract without fulfilling the corresponding procedural obligations when the employee has no fault, the employer shall pay the corresponding economic compensation in accordance with the law (if the termination is illegal, the employer shall pay compensation).

IV. Outcome of the case

After investigation and trial, the Arbitration Commission confirmed that the respondent should pay Fan * the wage difference from June 1 to June 6, 2023; regarding the unpaid annual leave wages, since Fan * submitted the arbitration application on June 21, 2023, the respondent's claim that the arbitration statute of limitations had passed was not accepted. In accordance with Articles 30, 47, and 87 of the Labor Contract Law of the People's Republic of China, Article 5 of the Regulations on Paid Annual Leave for Employees, and Articles 6 and 42(4) of the Labor Dispute Mediation and Arbitration Law of the People's Republic of China, the arbitration tribunal ruled that: XX Company Limited shall, within five days from the effective date of this award, pay Fan * compensation for the unlawful termination of the labor contract of 281,785.66 yuan; pay the wage difference from June 1 to June 6, 2023 of 14.63 yuan; and pay the unpaid annual leave wages of 8,969.3 yuan.

5. Henglu Law Firm's Advice

This case is represented by Attorney Feng Na of Beijing Henglu Law Firm (Practice Certificate No.: 11101202211562923, subject to the certificate issued by the judicial administrative authority). When an employer terminates a labor contract on the grounds of "serious violation of rules and regulations", there must be sufficient factual basis and legal procedures; if the employer terminates the contract without fulfilling the corresponding procedural obligations when the employee has no fault, it constitutes an illegal termination and the employer shall pay compensation (twice the standard of economic compensation). When a worker encounters an illegal termination, he/she should pay attention to collecting the termination notice, rules and regulations, and communication records, and apply for arbitration in a timely manner.

VI. Frequently Asked Questions about Labor Dispute Cases

  1. Q: How much does the company have to pay in compensation if it arbitrarily dismisses an employee?
    A:For unlawful termination, the employer shall pay compensation at twice the standard of economic compensation; and the economic compensation shall be paid at the rate of one month's salary for each year of service.
  2. Q: How to determine a serious violation of rules and regulations?
    A:There must be genuine and clear regulatory basis and sufficient facts, and the dismissal procedure must be legal; dismissal without factual basis is generally deemed illegal.
  3. Q: Is there a statute of limitations for arbitrating unpaid annual leave wages?
    A:Yes. Generally, the time limit starts from the moment the party concerned becomes aware that their rights have been infringed. However, if the claim is filed within one year after the employee leaves the company and the facts are clear, the arbitration committee will usually accept it.
  4. Q: What's the difference between compensation for unlawful termination and compensation for damages?
    A:\nFor lawful termination, the employer shall pay compensation (N); for unlawful termination, the employer shall pay double compensation (2N).
  5. Q: How to collect evidence if you're dismissed from your job?
    A:Save the release notice, pay slips, text of rules and regulations, chat records in the work group, attendance and overtime records, etc.