[Case Summary]This case involves a labor dispute. Li * joined a certain technology company in Beijing as a software engineer in October 2016, with a monthly salary of 9,700 yuan. In July 2020, the company unilaterally reduced Li *'s salary, arranged rotating shifts, put him on standby, and shut down the access control and office systems, refusing to provide working conditions. Li * therefore terminated the labor contract and entrusted Beijing Henglu Law Firm to handle the case on his behalf.Chen Mei'eThe lawyer acted on behalf of the client to claim the wage difference, the wages during the waiting period, and the severance pay. The court ruled that the company's unilateral amendment of the labor contract was illegal, and ordered the company to pay the wage difference of 5,631.34 yuan, the wages of 4,833.14 yuan, and the severance pay of 37,800 yuan. Applicable laws: Articles 30, 35, 38, 46, and 47 of the Labor Contract Law of the People's Republic of China.

I. Review of the case facts

"Is it legal for the company to unilaterally reduce salaries?" "What should I do if the company makes me stay on standby without paying wages?" "Can I terminate the employment contract if the company locks me out and fails to provide working conditions?" These are all frequently searched questions by workers. Li * joined a certain technology company in Beijing in October 2016 and worked as a software engineer, with a monthly salary of 9,700 yuan. The company implemented a salary distribution system, paying salaries on the 12th of each month for the period from the 27th of the previous month to the 26th of the current month. On July 2, 2020, the company unilaterally announced a salary reduction, to which Li * disagreed in writing. On July 7, the company notified Li * that he would be rotated to a different position once a week. After Li * again refused to agree, the company directly issued a notice requiring him to stay on standby and shut down his access to the company's security system, work email, and office systems, refusing to provide working conditions.

From July 8 to August 12, 2020, Li * attended work as usual. On August 12, he terminated the labor contract with the company on the grounds that the company owed him wages and failed to pay social insurance in accordance with the law, and entrusted our law firm to handle the case for him.Chen Mei'eThe lawyer, on behalf of the client, requests the payment of the wage arrears of 6,596 yuan from June 27 to July 26, 2020, and 5,797.7 yuan from July 27 to August 12, as well as the severance payment. The company argued that it was affected by the funding chain problem due to the pandemic and did not intentionally default on the payment, but it did not sue for the wages and arrears confirmed by the arbitration award.

II. The focus of the case

  • Focus 1: Whether the company's unilateral salary reduction, job rotation, and waiting period constitute illegal amendments to the labor contract.The amendment of the labor contract requires mutual consent, but the company implemented it without obtaining the employee's approval.
  • Focus Two: Did the company fail to provide working conditions, leading to employees being forced to terminate their employment contracts?They refused to provide working conditions, including locking the access control system, email accounts, and systems.
  • Focus 3: Should the economic compensation for the termination of the labor contract be supported?If the employee is dismissed due to the company's fault, the company shall pay economic compensation to the employee.

III. Professional intervention by Hengluo Law Firm

The worker claimed that:Li * claimed that the company unilaterally reduced his salary, rotated his job positions, placed him on standby, and closed his office access rights, refusing to provide working conditions. He sued for wage differences, standby wages, and severance compensation.

Employer's position:The company said that due to the impact of the pandemic, it implemented home office from February 2020 and paid salaries in full before June. However, at the end of June, it announced a salary reduction due to funding problems, which was not a malicious default on payments.

Hengluo Lawyer's Agency Opinion:Chen Mei'aoThe lawyer organized evidence such as labor contracts, emails, and audio recordings. Based on the investigation, the company was still operating normally from July to August 2020. According to Article 27 of the "Beijing City Wage Payment Regulations", the company did not fall into the overall situation of "work stoppage or business suspension". Unilaterally reducing salaries, rotating jobs, and waiting for assignments constitute changes to the labor contract, which should be agreed upon by both parties to take effect. The company's arrangement of rotating jobs and waiting for assignments without obtaining consent violates Article 35 of the "Labor Contract Law of the People's Republic of China" and is not binding on Li*. If the employee failed to attend work due to the company's failure to arrange work or provide working conditions, the company should still pay according to the original wage standard.

IV. Outcome of the case

The court ruled in accordance with Article 30 Paragraph 1, Article 38 Paragraph 1 Item (2), Article 46 Paragraph 1, and Article 47 of the Labor Contract Law of the People's Republic of China: First, the company shall pay the wage difference of 5,631.34 yuan from June 27 to July 26, 2020; Second, the company shall pay the wage of 4,833.14 yuan from July 27 to August 12, 2020; Third, the company shall pay the economic compensation of 37,800 yuan for the termination of the labor contract. The court adopted the lawyer's viewpoint and supported Li's claims.

5. Henglu Law Firm's Reminder

This case is handled by Beijing Henglu Law FirmChen Mei'aoThe lawyer (practice license number: 11101201911105336, subject to the document issued by the judicial administrative organ) acts as the agent. During the pandemic, enterprises must reach an agreement with their employees on salary reductions. Unilateral salary cuts, rotating jobs, waiting for jobs, and closing office permissions are all illegal. Beijing Hengluo Law Firm reminds workers to keep evidence of communication and attendance, and to claim wages and economic compensation in accordance with the law.

VI. Common Questions and Answers about Protecting Rights by Unilaterally Reducing Salaries

  1. Q: Is it legal for the company to unilaterally reduce employees' salaries?
    A:It's illegal. To amend the content of the labor contract, both parties must reach an agreement through consultation. The company's unilateral salary reduction is not binding on employees.
  2. Q: The company is making me stay on standby without getting paid. What should I do?
    A:Unless it is a situation where the company is legally required to suspend work or operations, the company's arrangement of putting employees on standby is an illegal change, and the company should pay them according to the original wage standard.
  3. Q: Can I terminate the employment contract if the company locks me out of the system and fails to provide working conditions?
    A:Yes. If the employer refuses to provide working conditions, the employee can terminate the labor contract and claim economic compensation.
  4. Q: Can I get economic compensation if I'm forced to leave my job?
    A:If the employment contract is terminated due to the employer's fault (such as unpaid wages or failure to provide working conditions), the employer shall pay economic compensation according to the employee's length of service.
  5. Q: Can we reduce employees' salaries if we're facing operational difficulties due to the pandemic?
    A:It is necessary to consult with employees and adopt measures such as adjusting their salaries, rather than unilaterally forcing them to accept a pay cut.