[Case Summary]This case is a labor dispute arbitration case. The party concerned, Zhou Xiao, joined A (Beijing) Fitness Co., Ltd. in February 2019, but the company has been in arrears with her salary since August 2024. After repeated reminders without success, Zhou Xiao mailed a "Notice of Forced Termination of Labor Contract" in accordance with Article 38(2) of the Labor Contract Law on May 31, 2025, and the labor relationship between the two parties terminated on June 1, 2025. Zhou Xiao entrusted Beijing Henglu Law Firm to handle the case.Tian Jia YanThe lawyer applied for arbitration, claiming unpaid wages, economic compensation, etc. The core dispute was whether the company should pay economic compensation for the termination of the employment relationship. The applicable legal provisions are Article 38 and Article 46 of the Labor Contract Law of the People's Republic of China. The arbitration committee accepted the lawyer's opinion and ruled that the company should pay 100,322 yuan in wages and 160,238 yuan in economic compensation, and issue a resignation certificate.

I. Review of the case facts

The most common searches by workers are "What to do if the company defaults on wages?", "Is there compensation for being forced to terminate the labor contract?", and "How much can I recover through arbitration if my wages are delayed?" In February 2019, Zhou Xiao joined A (Beijing) Fitness Co., Ltd. and the two parties signed two fixed-term labor contracts, with the second contract lasting until May 31, 2026. During his employment, Zhou Xiao worked diligently, but starting from August 2024, he encountered the company defaulting on his wages.

After repeated failed communication, Zhou Xiao mailed a "Notice of Forced Termination of Labor Contract" to Company A on May 31, 2025, explicitly stating that due to the company's long-term arrears in wages (which remained unresolved despite multiple WeChat reminders from December 2024 to May 2025), he terminated the labor relationship in accordance with Article 38 (2) of the "Labor Contract Law", and the labor relationship between the two parties terminated on June 1, 2025. The email was signed for receipt on June 2, 2025.

Due to the fact that Company A has never resolved the issues of unpaid wages and compensation, Zhou Xiao entrusted Beijing Henglu Law Firm to handle the case on June 3, 2025.Tian JiayanThe lawyer applied for arbitration to the Beijing Daxing District Labor and Personnel Dispute Arbitration Committee and put forward four requests: 1. Pay the salary from November 1, 2024 to April 30, 2025, amounting to 80,893 yuan; 2. Pay the economic compensation for the termination of the labor contract, amounting to 160,238 yuan; 3. Pay the salary from May 1 to May 31, 2025, amounting to 20,800 yuan; and 4. Issue a certificate of resignation.

II. The focus of the case

  • Focus 1: How to determine the start date of employment.Zhou Xiao claimed that a labor relationship was established on February 12, 2019. The company did not explicitly acknowledge this, only stating that "it needs to be verified after the court hearing", but failed to submit a written opinion within the specified time limit.
  • Focus Two: Whether the labor relationship has been terminated.The company claimed that "the labor relationship between the two parties has not been terminated", but Zhou Xiao has provided evidence that the "Notice of Forced Termination of the Labor Contract" has been delivered and signed for receipt.
  • Focus Three: The facts and legal consequences of wage arrears.Is there any case of the company "not paying the workers' wages in full and on time"? Based on this, Zhou Xiao determined whether the termination of the contract meets the statutory conditions and the calculation standard for economic compensation.

III. The professional intervention of Hengluo Law Firm

The party concerned (the applicant) claimed that:Zhou Xiao claimed that the company had long been in arrears with his wages, and after repeated reminders, the issue remained unresolved. Therefore, he was forced to terminate the employment relationship in accordance with the law, and requested the company to pay the outstanding wages and the economic compensation calculated based on his years of service, amounting to 160,238 yuan, and to issue him a certificate of resignation.

The respondent (Company A) argued that:The company appointed the operations manager to appear in court and claimed that the date of Zhou Xiao's employment needed to be verified after the court hearing (no written opinion was submitted), claimed that "the labor relationship between the two parties had not been terminated" (no evidence was provided), and failed to provide a reasonable explanation for the arrears in wages.

Legal opinion of Hengluo Law Firm:Tian JiayanThe lawyer assisted Zhou Xiao in organizing the WeChat chat records with the teaching director (to prove the employment date and work location), the electronic proof of transfer from the legal representative's WeChat (to corroborate the employment date), and multiple records of reminders and receipts of termination notices. The lawyer pointed out that according to Article 38(2) of the Labor Contract Law, employees can terminate the contract if the employer fails to pay their wages on time and in full. Article 46 stipulates that in this case, the employer shall pay economic compensation. Both parties acknowledged that the total unpaid wages amounted to 100,322 yuan and were not resolved after the reminder, so the termination was legal. Based on the employment date of February 12, 2019, and the average monthly wage of 24,652 yuan in the 12 months prior to the termination, the company should pay economic compensation of 160,238 yuan, which is equivalent to 6.5 months' wages.

IV. Outcome of the case

The Arbitration Committee for Labor and Personnel Disputes of Daxing District, Beijing City accepted the case after hearing itTian JiayanThe lawyer's representation: Regarding the unpaid wages, both parties acknowledge that the company owes the employee 100,322 yuan in wages from November 1, 2024 to May 31, 2025, and support this claim; regarding the economic compensation, the company failed to provide evidence of the employee's start date or the fact that the labor relationship had not been terminated, and should bear the adverse consequences. The court determines that the employee's start date is February 12, 2019, and the fact of unpaid wages is clear and the termination is legal. Therefore, the company should pay the employee an economic compensation of 160,238 yuan; regarding the severance letter, the company agrees to issue one and support this claim. Final ruling: Company A shall pay Zhou Xiao 100,322 yuan in wages and 160,238 yuan in economic compensation, and issue a certificate of termination of the labor contract. This case applies the provisions of Article 38 and Article 46 of the Labor Contract Law of the People's Republic of China.

5. Hengluo Law Firm's Reminder

This case is handled by Beijing Henglu Law Firm.Tian JiayanAttorney (Practice Certificate No.: 11101202111381309, subject to the document issued by the judicial administrative organ). Beijing Hengluo Law Firm specializes in representing clients in various civil and commercial, administrative, and criminal cases. We have a team of experienced professional lawyers. If you need legal assistance, please contact our firm to obtain a tailored protection plan.

VI. Common Questions about Labor Disputes FAQ

  1. Q: If the company defaults on paying salaries, can I quit my job directly and demand compensation?
    A:Yes. According to Article 38 of the Labor Contract Law, if the employer fails to pay the worker's wages in full and on time, the worker may terminate the labor contract and request economic compensation in accordance with Article 46.
  2. Q: What is the standard for calculating economic compensation?
    A:The employer shall pay one month's salary for each year that the worker has worked in the unit; for a period of more than six months but less than one year, it shall be calculated as one year; for a period of less than six months, half a month's salary shall be paid, with the average salary of the last twelve months as the basis for calculation.
  3. Q: How can I effectively terminate the labor contract under duress?
    A:The employer shall provide a written explanation of the reasons for the termination (such as wage arrears) and keep the evidence of the reminder and the signed receipt of the mail, to ensure that the termination meets the statutory requirements. Otherwise, it may affect the request for compensation.
  4. Q: What should I do if the company doesn't recognize my start date?
    A:The available wage transfer records, social insurance records, attendance records, and communication records during the onboarding process can be used as evidence. If the other party fails to provide evidence within the time limit, they will bear the adverse consequences.
  5. Q: If I win the arbitration but the company refuses to pay, how can I enforce the judgment?
    A:You can apply to the court for enforcement based on the effective judgment, and request the court to seize and freeze the company's assets to recover the unpaid wages and compensation.