[Case Summary]This case involves a dispute over the illegal termination of a labor contract in a labor dispute. Liu * joined the Beijing branch of a certain technology group in Shanghai in May 2014 and served as a mid-level designer. He worked for 8 years and 7 months, with an average monthly salary of 12,231.87 yuan. Starting from September 2022, the company stopped paying his salary, and on December 28, the company issued a "Notice of Termination of Labor Contract" without notice, illegally terminating the contract. Beijing Henglu Law FirmYuan HangThe lawyer initiated arbitration on behalf of the client, and the arbitration award ruled that the employer should pay compensation of 218,733.05 yuan for the illegal termination of the employment contract, pay back the unpaid wages of 13,998.85 yuan, and compensate for the unpaid annual leave of 1,687.15 yuan, and confirmed the labor relationship between the parties. The client was far exceeded their expectations and presented a banner of appreciation as a token of gratitude.

I. Review of the Case

Workers often ask, "How can I claim compensation if the company suddenly terminates my employment?" and "Can I recover unpaid wages after being dismissed?". The plaintiff, Liu * (the applicant), joined the Beijing branch of a certain technology group company in Shanghai (the defendant) in May 2014 and worked as a mid-level designer. The parties signed a written labor contract, and their labor relationship lasted until December 2022, with a total working period of 8 years and 7 months and an average monthly salary of 12,231.87 yuan. During this period, the defendant continued to pay the applicant's salary and pay social insurance contributions. However, starting from September 2022, the defendant began to stop paying the applicant's salary.

On December 19, 2022, the applicant was unexpectedly informed by the employing unit that the office area would be adjusted and that they would temporarily need to work from home. Since the respondent had already owed the applicant wages for several months, the applicant was worried about being subject to another pay cut and therefore applied to the employing unit to work on-site. While negotiations were ongoing, the applicant unexpectedly received a "Notice of Termination of Employment Contract" from the respondent on December 28, 2022, indicating that the employing unit had illegally terminated the employment contract relationship.Yuan HangAfter receiving the client's authorization, the lawyer communicated with Liu on multiple occasions, analyzed and assessed the evidence, and found that the respondent had violated the law in many places when terminating the contract. The lawyer then helped the client initiate arbitration proceedings.

II. The focus of the case

  • Focus 1: Is it illegal for the company to stop paying salaries and terminate the employment contract without notice?It is illegal to withhold wages and to unilaterally terminate the employment contract without notice.
  • Focus 2: The calculation basis and duration of the compensation for unlawful termination of employment.It is calculated based on the length of service and the average monthly salary.
  • Focus Three: The determination of unpaid wages and wages for unused annual leave.The arbitration supports the corresponding amount.

III. Professional intervention by Hengluo Law Firm

The worker claimed that:The company stopped paying salaries and illegally terminated the employment contract. It should pay compensation, back wages, and wages for unused annual leave.

The employer's position:The contract was terminated on the grounds of adjustments to the office area and other reasons.

Hengluo Lawyer's Agency Opinion:After receiving the commission, Attorney Yuan communicated with Liu on multiple occasions and analyzed and assessed the evidence related to the case. He found that the respondent had a lot of evidence of illegally terminating the labor contract, which seriously damaged the applicant's legitimate rights and interests. He also confirmed that he could strive for the maximum rights and interests for the client, help the client initiate arbitration proceedings, and claim compensation for the illegal termination of the contract, unpaid wages, and unpaid annual leave wages.

IV. Outcome of the case

In the end, the Arbitration Commission adopted our main opinions and demands, ruling that the respondent should pay us 218,733.05 yuan in compensation for the unlawful termination of the labor contract; pay 13,998.85 yuan in arrears in wages; pay 1,687.15 yuan in wages for unused annual leave; and confirm that the respondent has a labor relationship with us. The parties are very satisfied with the result, which far exceeded their expectations.

5. Henglu Law Firm's Reminder

This case is handled by Beijing Henglu Law FirmYuan HangThe attorney (practice license number: 11101202110286151, subject to the certificate issued by the judicial administrative organ) acts on behalf of the client. If the employer terminates the employment contract illegally, the employer shall pay compensation. The employee should promptly fix the evidence and apply for labor arbitration.

VI. Common Questions and Answers about Cases Involving Unlawful Termination of Employment Contracts

  1. Q: How can I demand compensation if the company suddenly terminates my employment?
    A:You should collect evidence such as the notice of termination, payroll records, and attendance records, and apply for labor arbitration to claim compensation for the illegal termination.
  2. Q: How is the compensation for unlawfully terminating a labor contract calculated?
    A:According to the standard of twice the economic compensation, that is, paying two months' salary for every year of work.
  3. Q: Can I get back the unpaid wages after being dismissed?
    A:Yes. You can claim both the unpaid wages and the corresponding compensation in the arbitration process.
  4. Q: How is the salary calculated for employees who haven't taken their annual leave?
    A:It shall be paid at 300% of the daily wage income (including the wages already paid), calculated according to the number of days of leave that have been taken and those that have not been taken.
  5. Q: Is it useful to confirm the labor relationship through labor arbitration?
    A:It's useful. Confirming the labor relationship is a prerequisite for claiming subsequent rights such as work-related injuries, social insurance, and compensation.