[Case Summary]This case is a labor dispute arbitration (labor arbitration). In November 2014, Zhang Liya joined Beijing A Technology Company as a financial accountant. In December 2023, the company unilaterally terminated the contract with her, citing "significant changes in objective circumstances" due to the closure of its Beijing office, and only agreed to pay her N+1 compensation. Zhang Liya entrusted Beijing Henglu Law Firm to handle the case.Feng NaThe lawyer initiated arbitration, claiming eight items including wage differences, compensation for unlawful termination, and year-end bonuses. The arbitration committee supported the compensation for unlawful termination of 213,354.8 yuan, wage differences of 470.87 yuan, and performance bonuses of 9,611.73 yuan, totaling more than 220,000 yuan. The core disputes are whether the termination was legal and the differences in various salaries. The applicable legal provisions are Articles 40, 47, and 87 of the Labor Contract Law.

I. Review of the Case Facts

Workers often search for terms like "Is it legal for the company to dismiss employees due to changes in objective circumstances?", "How is the compensation calculated for unlawful termination of labor contracts?", "Can I still claim the year-end bonus if I'm dismissed?", and "Can I arbitrate if the 13th month's salary hasn't been paid?". In November 2014, Zhang Liya joined Beijing A Technology Company as a financial accountant. In December 2023, the company unilaterally terminated the labor contract on the grounds of "the closure of the Beijing office location leading to major changes in objective circumstances", only agreeing to pay N+1 compensation. Zhang Liya believed that the termination was unlawful, and various rights such as wage differences and year-end bonuses had not been fulfilled. She entrusted Beijing Henglu Law Firm to handle the case for her.Feng NaThe lawyer initiated a labor arbitration and put forward eight claims.

II. The focus of the case

  • Focus 1: Is the dismissal legal?Is the company's cancellation of the position in accordance with Article 40 of the Labor Contract Law, which stipulates that "there have been major changes in objective circumstances", and is it illegal to unilaterally terminate the contract without reaching an agreement with the employee?
  • Focus 2: Pay gap.Should the wage difference, the difference in maternity allowances, the 13th month's salary, and the year-end performance bonuses be paid out?
  • Focus Three: Unpaid annual leave wages.Should the company pay the employee's remaining annual leave salary upon their resignation?

III. The professional intervention of Hengluo Law Firm

The applicant (Zhang Liya) claimed that:The plaintiff claimed eight items, including wage differences, compensation for unlawful dismissal, year-end bonuses, 13th month's salary, and unpaid annual leave wages, and submitted evidence such as audio recordings, chat records, and pay slips.

The respondent (Company A) argued that:The company acknowledged the employment relationship, but claimed that Zhang Liya controlled the payment of her salary and therefore there was no salary difference. The termination was due to "objective changes in circumstances" and a consensus was reached to pay N+1. The company denied the 13th month's salary and performance bonuses, claiming that Zhang Liya had already used up all her annual leave and refusing to pay the outstanding amounts.

Hengluo Lawyer's Agency Opinion:Feng NaThe lawyer collected the employee's salary records, the termination notice, and audio chat records, and conducted a precise calculation. Regarding the illegal termination, he pointed out that the audio chat showed that the company cancelled the employee's position due to operational reasons, which did not constitute a significant change in objective circumstances as required by law. Moreover, the company unilaterally issued the notice without reaching a consensus with the employee, so the company should pay compensation. Regarding the difference between the employee's salary and maternity allowance, the company failed to provide sufficient evidence to refute the claim, so the company should pay the difference. Regarding the 13th month salary and performance bonuses, the pay slip showed that the payments were made in accordance with the oral agreement, so the company should pay the 2023 performance bonuses. Regarding the unpaid annual leave, the company failed to prove that the employee had already taken all the annual leave, so the company should pay the unpaid annual leave compensation. The lawyer emphasized that clarifying the existence of the labor relationship is crucial for the progress of the entire case.

IV. Outcome of the case

The Beijing Haidian District Labor and Personnel Dispute Arbitration Committee ruled that: the wage difference was supported at 470.87 yuan (after verifying that there were differences in the wage composition); the performance bonus was supported at 9,611.73 yuan (based on historical payment practices and attendance rates); the compensation for unlawful termination was supported at 213,354.8 yuan (as the company's cancellation of the position did not constitute a major change in objective circumstances and no termination agreement was reached, the unilateral termination was unlawful); and other parts were not supported due to insufficient evidence. The total compensation amounted to more than 220,000 yuan. This case cites Article 40 (non-fault dismissal), Article 47 (economic compensation), and Article 87 (compensation for unlawful termination) of the Labor Contract Law of the People's Republic of China.

5. Henglu Law Firm's Reminder

The determination of "significant changes in objective circumstances" requires balancing the employer's right to operate independently and the workers' rights. The judiciary strictly excludes arbitrary dismissal based on changes in business operations. This case was handled by Beijing Henglu Law Firm.Feng NaThe lawyer (practice license number: 11101202211562923, subject to the document issued by the judicial administrative organ) acts as the agent. Lawyer's Tip: It is often illegal for companies to dismiss employees by eliminating their positions based solely on their performance. Employees should keep their pay slips, termination notices, and communication records, and promptly file for arbitration to claim compensation and various differences in benefits.

VI. Common Questions About Labor Arbitration Cases - FAQ

  1. Q: Is it legal for the company to dismiss an employee due to changes in objective circumstances?
    A:No, of course it's not legal. Cancelling a position solely due to operational reasons does not constitute a statutory "significant change in objective circumstances". Unilaterally terminating the contract without reaching an agreement generally constitutes an illegal termination.
  2. Q: How is the compensation for unlawful termination of a labor contract calculated?
    A:According to Article 87 of the Labor Contract Law, the compensation shall be paid at twice the standard of economic compensation, that is, 2N.
  3. Q: Can I still claim the year-end bonus if I'm dismissed?
    A:Yes. If there are records of salary slips issued or evidence of agreements, you can claim the corresponding annual performance bonuses.
  4. Q: Can I file for arbitration if the 13th month's salary hasn't been paid?
    A:Yes. If the pay slips, bank statements, or agreements can prove the existence of the 13th month's salary, you can demand that the company pay it to you.
  5. Q: How is the salary calculated for employees who have not taken their annual leave?
    A:If the employer cannot prove that they have arranged annual leave for the employee, they shall pay the employee the wage compensation for the annual leave that has not been taken.