[Case Summary]This case involves a labor dispute. The worker, Guo * , signed multiple labor contracts with XX Hotel Management Co., Ltd. After the contract expired on March 9, 2022, the company notified Guo * that the contract would be terminated and refused to renew the non-fixed-term contract with him, dismissing him unilaterally. After Guo * successfully applied for labor arbitration, the company appealed to the court and was not satisfied with the arbitration result. The case is currently being handled by Beijing Henglu Law Firm.Li YonghuiThe lawyer represented the client in this case, submitting evidence such as attendance cards, WeChat chat records, audio recordings, and videos to prove that the company terminated the employment relationship without justifiable reasons. The first-instance court ruled that the company should pay compensation for the unlawful termination of the employment relationship of 130,099.5 yuan, wages of 18,243.84 yuan, and unpaid annual leave wages of 4,785.27 yuan. The core dispute is whether the company constitutes an unlawful termination and the calculation of various labor benefits. Applicable legal provisions: Articles 47 and 87 of the Labor Contract Law of the People's Republic of China.

I. Review of the case

Many workers encounter problems such as "what should I do if the company refuses to renew my contract and dismisses me instead", "how is the compensation calculated for unlawful termination of the labor contract", and "can the company still win the lawsuit after labor arbitration". On March 10, 2010, Guo * signed a labor contract with xx Hotel Management Co., Ltd. (hereinafter referred to as xx Hotel) with a term from March 10, 2010 to March 9, 2013. The contract was subsequently renewed to March 9, 2022 on March 10, 2013 and January 14, 2019. xx Hotel paid Guo *'s salary until March 9, 2022. During the period from March 2021 to February 2022, the average monthly salary paid was 5,203.98 yuan, and both parties agreed to use this as the basis for calculating various expenses.

On March 28, 2022, Guo * sent a "Urgent Letter" to xx Hotel, demanding the signing of a non-fixed-term contract, but received no response. On April 25, 2022, Guo * filed a labor arbitration case against xx Hotel as the respondent. On September 19, 2022, the arbitration tribunal ruled that a labor relationship existed between March 10, 2010 and June 24, 2022; the company was ordered to pay Guo * 4,785.27 yuan for unpaid annual leave wages, 18,243.84 yuan for wages from March 10, 2022 to June 24, 2022, and 130,099.5 yuan in compensation for unlawful termination of the labor relationship. xx Hotel appealed against the arbitration award, claiming that its actual employment date was May 2010. Due to the COVID-19 pandemic and the seizure and freezing of the hotel's buildings and accounts, which caused serious operational difficulties, the objective circumstances had undergone major changes, making it impossible to continue performing the contract. The company also claimed that the contract was terminated after expiring on March 9, 2022.

II. The focus of the case

  • Focus 1: Does the company's termination of the labor contract constitute an illegal dismissal?The company claimed that there had been significant changes in the objective circumstances, but it did not express a clear intention to terminate the contract. Guo * actually provided labor until June 24, 2022, which constituted an unjustified dismissal.
  • Focus 2: The calculation base for various benefits during the existence of the labor relationship between the two parties.Both parties agree to calculate the compensation, wages, and annual leave wages based on an average monthly salary of 5,203.98 yuan.
  • Focus Three: Whether the termination notice submitted by the company was truly delivered to the other party.The company claimed that it had sent a termination notice, but Guo * did not receive it, and there was no evidence to prove it, so it could not be used as a basis for termination.

III. The professional intervention of Hengluo Law Firm

The party concerned (the worker) claimed that:Guo * claimed that the company never explicitly stated that it would not renew his contract, that the two parties had discussed compensation but failed to reach an agreement, and that the company dismissed him without any justification. He demanded that the company pay him compensation, his salary, and the unpaid annual leave salary.

The position of the prosecution party (the employing unit):The xx Hotel disagrees with the arbitration result and requests a judgment that it should not bear all the expenses. It claims that the actual date of employment was May 2010. Due to the pandemic and account freezing, the hotel encountered operational difficulties and was unable to continue performing the contract, so it notified Guo * to terminate the contract and requested that Guo *'s request be dismissed.

Legal opinion of Hengluo Law Firm:Li YonghuiThe lawyer disagreed with the company's lawsuit and pointed out that: Firstly, the company never explicitly stated that it would not renew the contract, nor did it reach an agreement on compensation for termination, nor did it make a clear statement of termination. Guo * actually provided labor until June 24, 2022, and the company dismissed him without any justification. The lawyer submitted attendance cards, WeChat chat records, audio recordings, videos, and other evidence to prove this. Secondly, after the contract expired, Guo * sent a "Urgent Letter" demanding the signing of an indefinite-term labor contract. The company claimed that it had sent a termination notice, but Guo * did not receive it and had no evidence. Guo *'s claims are reasonable and well-founded.

IV. Outcome of the case

The court of first instance adopted the opinion of Hengluo Law Firm and made the following judgment: 1. A labor relationship existed between Guo * and XX Hotel from March 10, 2010 to June 24, 2022; 2. The company shall pay Guo * compensation for the illegal termination of the labor relationship in the amount of 130,099.5 yuan; 3. The company shall pay Guo * wages for the period from March 10, 2022 to June 24, 2022 in the amount of 18,243.84 yuan; 4. The company shall pay Guo * wages for the unused annual leave from April 26, 2020 to June 24, 2022 in the amount of 4,785.27 yuan; 5. The company's other claims are dismissed. The basis for this judgment is the provisions of Article 47 and Article 87 of the Labor Contract Law of the People's Republic of China regarding compensation for illegal termination of labor relationships.

5. Henglu Law Firm's Reminder

This case is handled by Beijing Henglu Law Firm.Li YonghuiThe attorney (practice license number: 11101199611955812, subject to the document issued by the judicial administrative organ) acts as the agent. When workers encounter the situation that "the company does not renew the contract after it expires and even terminates the contract", they should pay attention to preserving evidence such as attendance records, salary records, and communication records, and promptly claim compensation for unlawful termination. Beijing Hengluo Law Firm has long been handling labor dispute cases, safeguarding the legitimate rights and interests of workers with a professional and responsible attitude towards case handling.

VI. Frequently Asked Questions about Labor Disputes

  1. Q: Is it illegal for a company to directly dismiss an employee without renewing their labor contract?
    A:If the contract expires and the employee meets the conditions for signing a non-fixed-term contract, and the company terminates the contract unilaterally without a legitimate reason for termination, it generally constitutes an illegal termination, and the employee can claim compensation.
  2. Q: How is the compensation for unlawful termination of a labor contract calculated?
    A:Calculated at twice the standard of economic compensation, the economic compensation shall be paid at the rate of one month's salary for each year of service, and the monthly salary shall be based on the average salary of the last twelve months before the termination of the employment contract.
  3. Q: Can the company still win the lawsuit in court after labor arbitration?
    A:Yes. The arbitration result is not final. After the company files a lawsuit, the court will retry the case. If the evidence is sufficient, the company's claim may still be supported by the court.
  4. Q: Can I get back the wages for the unused annual leave?
    A:Yes. If the employer fails to arrange annual leave for the employee, the employer shall pay the employee 300% of the daily wage for the unpaid annual leave, which includes the normal wages already paid.
  5. Q: Can the company reduce salaries and dismiss employees just because it says it's having financial difficulties?
    A:Operational difficulties are not a legal ground for unilateral termination of the employment contract. Any amendment to the employment contract must be agreed upon by both parties. Otherwise, the employer will still bear the liability for unlawful termination.