[Case Summary]This case involves a labor dispute (illegal termination of the labor contract). Liu * joined the company in 2021, but the company unilaterally reduced the proportion of the housing provident fund and the base amount of social insurance, and also reduced his salary. In April 2023, the company illegally terminated the contract with Liu * on the grounds of "disobeying management and arrangements". Liu * entrusted Beijing Henglu Law Firm to handle the case for him/her.Tian JiayanThe lawyer handled the case, and the company paid Liu * an economic compensation of 107,493.34 yuan through arbitration mediation. The core disputes include the validity of the company's rules and regulations, the determination of unlawful termination, and the application of the economic compensation and compensation rules of the Labor Contract Law.

I. Review of the Case Facts

Can the company fire someone for "disobeying management" and demand compensation? Many people search for terms like "how to claim compensation for illegal dismissal" and "is it legal for the company to unilaterally reduce salaries?". In October 2021, Liu * signed a labor contract as a client manager, with a fixed monthly salary of 20,000 yuan and a variable performance bonus of 5,000 yuan. In July 2022, the company unilaterally reduced the housing provident fund contribution rate from 12% to 5% (without fulfilling its promise to make up the difference), and in November, it unilaterally reduced the social insurance base amount to 6,000 yuan. Starting from January 2023, all employees received 70% of their salaries, and Liu * was deducted 6,000 yuan per month. On April 18, 2023, the company illegally terminated the contract with Liu * on the grounds of "disobeying management and violating company rules". Liu * entrusted Beijing Henglu Law Firm to handle the case.Tian Jia YanThe lawyer safeguards the client's rights and interests.

II. The focus of the case

  • Focus 1: Whether the company's termination of the contract is illegal.Whether the rules and regulations have undergone a democratic process, are legally compliant, and have been made public, and whether Liu's actions constitute a "serious violation".
  • Focus 2: Is it legal to unilaterally reduce salaries and adjust the base salary?The company unilaterally reduced the provident fund, social insurance, and salaries without negotiation. Is this a breach of contract?
  • Focus Three: How is the amount of economic compensation calculated?Based on the salary standard and working hours, the amount was determined to be over 107,000 yuan.

III. Professional intervention by Hengluo Lawyers

The applicant alleges that:Liu * claimed that the company unlawfully terminated his employment and had been unilaterally reducing his salary and lowering his social insurance and housing provident fund contributions for a long time, and requested the company to pay him economic compensation and other benefits.

The respondent argued that:The company claimed that Liu * disobeyed management and arrangements and failed to comply with labor discipline, so the termination was legal and they refused to pay compensation.

Legal opinion of Hengluo Law Firm:Tian JiayanThe lawyer reviewed the labor contract and evidence and concluded that the company had unlawfully terminated the contract. He calculated and listed all the disputed claims, ensuring thorough preparation and clear legal basis. As a result, the company agreed to mediation in court.

  • Organize the payroll records and clarify the facts of unilateral reductions in fixed provident fund and social insurance contributions, as well as salary cuts
  • If the regulations are not subject to a democratic process or are not publicly announced, the dismissal will lack legal basis.
  • List the calculation of the economic compensation and facilitate the arbitration mediation

IV. Outcome of the case

After mediation by the Beijing Xicheng District Labor and Personnel Dispute Arbitration Committee and with the efforts of Attorney Tian, the two parties voluntarily reached an agreement: the respondent company will pay the applicant Liu Mou an economic compensation of 107,949.34 yuan by bank transfer, with 50,000 yuan to be paid before September 11, 2023 and 57,949.34 yuan to be paid before October 1, 2023. All the money has now been received in full. The client has achieved a satisfactory result.

5. Henglu Law Firm's Reminder

This case is handled by Beijing Henglu Law FirmTian JiayanAttorney (Practice Certificate No.: 11101202111381309, subject to the certificate issued by the judicial administrative organ). Attorney's Tip: If the employer unilaterally reduces the salary or lowers the social insurance and housing provident fund contributions, it must be negotiated with the employee. Otherwise, it may constitute a breach of contract; if the employee is dismissed for "disobeying management", it is necessary to prove that the rules and regulations are legal and effective and the employee's behavior constitutes a serious violation of discipline. Otherwise, it is an illegal dismissal, and the employer should pay compensation or compensation to the employee.

VI. Common Questions about Labor Dispute Cases - FAQ

  1. Q: Is it legal for the company to dismiss an employee for disobeying management?
    A:It is necessary to prove that the rules and regulations have gone through a democratic process, are legal and have been made public, and that the act in question constitutes a serious violation of discipline; otherwise, the dismissal is likely to be illegal and the employer should pay compensation.
  2. Q: Is it legal for the company to unilaterally reduce employees' salaries?
    A:It's illegal. To amend the provisions of the labor contract (such as wages, social insurance, and housing provident fund), both parties must reach an agreement through consultation. Unilaterally reducing the salary constitutes a breach of contract.
  3. Q: How much compensation can I get for an illegal dismissal?
    A:The employer shall pay compensation (twice the standard of economic compensation) for the illegal termination of the employment contract; in this case, the compensation shall be paid according to the amount of 107,494.34 yuan, calculated based on the employee's salary and length of service.
  4. Q: Does arbitration mediation have legal effect?
    A:Yes. The arbitration mediation document becomes effective upon receipt and can be enforced, allowing you to recover the payment faster than through a court judgment.
  5. Q: What evidence should I keep if I'm dismissed from my job?
    A:The labor contract, payroll records, social insurance and housing provident fund records, termination notices, and attendance and communication records are all core evidence for safeguarding one's rights.