[Case Summary]This case involves a labor dispute (arrears in wages and illegal layoffs). Li Hua joined the company in 2014, but the company has been delaying the payment of performance bonuses and basic wages for a long time. In October 2023, the company suddenly sent a "layoff notice" to reduce Li Hua's salary and force him to leave. Li Hua terminated the contract due to the company's failure to pay him in full. Both parties were dissatisfied with the arbitration result and appealed to the court. Li Hua entrusted Beijing Henglu Law Firm to handle the case for him.Tian Jia YanThe lawyer was compensated 307,248.58 yuan in one go through court mediation. The core disputes include unpaid remuneration, illegal suspension of work with a pay cut, and economic compensation. The Labor Contract Law and the Regulations on Paid Annual Leave for Employees were applied in this case.

I. Review of the Case

After working for nine years and being subject to long-term unpaid wages, the company suddenly notified him to take a leave of absence with a reduced salary in order to force him to quit. Can he recover the money? Many people search for "what to do if the company long-term withholds wages" and "is it legal to forcefully dismiss employees by reducing their salaries during a leave of absence". Li Hua joined A Education Technology Company in 2014 and was promoted to backend development supervisor in 2021, with a fixed monthly salary of 23,000 yuan. From March 2022, the company used "operational pressure" as an excuse to withhold performance bonuses, and from March 2023, even his basic salary was delayed. In total, he was owed 136,756.41 yuan in performance bonuses and 24,573.68 yuan in basic salary. On October 18, 2023, the company suddenly sent him a "notice of leave of absence" and reduced his salary to 2,420 yuan. Li Hua mailed a "notice of termination of labor relationship" to the company on the same day to terminate the contract. Li Hua entrusted Beijing Henglu Law Firm to handle the case.Tian JiayanThe lawyer protects the client's rights and interests.

II. The focus of the case

  • Focus 1: The facts and defenses regarding the arrears in labor remuneration.The company claimed that it was "operating in difficulties" and had defaulted on payments for nearly 20 months. Is this a legitimate extension of the payment deadline?
  • Focus 2: Is reducing salaries during the waiting period a disguised form of illegal dismissal?Is it illegal to unilaterally reduce an employee's salary and force them to leave without consultation during the waiting period?
  • Focus Three: How is the amount of the mediation determined?By combining the unpaid wages, economic compensation, and annual leave salary, a one-time payment of 307,248.58 yuan was achieved.

III. The professional intervention of Hengluo Law Firm

The applicant alleges that:Li Hua claimed that the company has long been in arrears with his basic salary of 24,573.68 yuan and performance bonuses of 136,756.41 yuan, and that the company's decision to reduce his salary during his waiting period was illegal. He requested the company to pay the arrears in wages and economic compensation, totaling 393,555.57 yuan.

The respondent argued that:Company A insists that "no payment should be made", and both parties are dissatisfied with the arbitration result and have appealed to the court.

Hengluo Lawyer's Agency Opinion:Tian JiayanThe lawyer pointed out that according to Article 30 of the Labor Contract Law, the company's failure to negotiate or register the arrears in wages for nearly 20 months does not constitute a legal extension and should be paid in full. Combined with the Regulations on Paid Annual Leave for Employees, the lawyer demonstrated that all claims are legal. Through multiple rounds of communication under the court's supervision with the aim of "reducing litigation and maximizing rights and interests", the lawyer successfully mediated the case.

  • Fixated salary statements, notifications of layoffs and salary cuts, and records of termination letters sent by mail
  • Cite Article 30 of the Labor Contract Law to demonstrate the obligation to pay wages in a timely and full manner.
  • After multiple rounds of mediation and consultation, we flexibly adjusted the plan to achieve a one-time settlement

IV. Outcome of the case

Under the mediation of the People's Court of Haidian District of Beijing and with the professional representation of Attorney Tian, the two parties voluntarily reached an agreement: A Education Technology Co., Ltd. shall pay Li Hua a total of 307,248.58 yuan in mediation fees by June 10, 2025; all labor disputes between the two parties shall be resolved once and for all, and there will be no further labor disputes. After going through multiple rounds of arbitration and litigation, Li Hua finally obtained the corresponding compensation through court mediation and realized the rights and benefits due to him for his nine years of work experience.

5. Henglu Law Firm's Reminder

This case is handled by Beijing Henglu Law FirmTian JiayanThe attorney (practice certificate number: 11101202111381309, subject to the certificate issued by the judicial administrative organ) acts as the agent. Attorney's Tip: Employers are not allowed to unilaterally delay paying wages or reduce salaries during layoffs by citing "operational difficulties". Workers can terminate the contract and claim economic compensation based on this; the key to protecting rights lies in preserving the labor contract, pay slips, company notifications, and records of contract termination by mail, and consulting professional labor lawyers in a timely manner.

VI. Frequently Asked Questions about Labor Dispute Cases

  1. Q: What should I do if the company consistently delays paying my salary?
    A:According to Article 30 of the Labor Contract Law, the employer shall pay the wages in full and on time; if the employer fails to pay the wages for a long time without reaching an agreement with the employee, the employee may terminate the contract and claim economic compensation.
  2. Q: Is it legal to reduce an employee's salary during the waiting period and effectively dismiss them?
    A:It's illegal. Unilaterally placing workers on standby without negotiation and forcing them to leave by drastically reducing their salaries constitutes an illegal modification of the labor contract. Workers can protect their rights in this situation.
  3. Q: Can I claim economic compensation if I'm dismissed due to unpaid wages?
    A:Yes. If the contract is terminated on the grounds of "failure to pay the labor remuneration in full and on time", the employee may, in accordance with the law, claim economic compensation for the termination of the labor contract.
  4. Q: Can I sue if I'm not satisfied with the arbitration decision?
    A:Yes. If either party is dissatisfied with the arbitration award, they may file a lawsuit with the court having jurisdiction and proceed with the litigation process.
  5. Q: Does court mediation have legal effect?
    A:Yes. The mediation agreement becomes effective upon its signing, and it can be enforced. It can settle disputes once and for all and reduce the burden of litigation.