[Case Summary]This case is a labor dispute arbitration case. Zhang * joined a certain technology company in Beijing as an embedded engineer in August 2021, but was dismissed in July 2022 on the grounds of "being unable to perform his duties satisfactorily". Moreover, the company failed to pay overtime wages, unused annual leave wages, and performance-based wages to Zhang*. Zhang * entrusted Beijing Henglu Law Firm to handle the case for him/her.Wang XinruiThe lawyer represented the client in the arbitration. The arbitration committee adopted some of the lawyer's opinions and ruled that the client should be paid overtime pay of 38,068.97 yuan on rest days and compensation of 47,993.34 yuan for the illegal termination of the labor contract. The applicable legal provisions are the relevant articles 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 dismiss an employee for being unqualified for the job?" "Can I claim overtime pay and annual leave pay?" "How is the compensation calculated for unlawful termination?" These are the most frequently asked questions by workers. Zhang * joined a certain technology company in Beijing on August 2, 2021, and served as an embedded engineer with a three-month probationary period, during which his monthly salary was 18,400 yuan. After passing the probationary period, his monthly salary was increased to 23,000 yuan. In July 2022, the company served him with a "Dismissal Notice", terminating the labor contract on the grounds that he was unqualified for the job. Zhang * disagreed with the reason for the dismissal and claimed that the company failed to pay overtime pay, unpaid annual leave pay, and performance bonuses. He subsequently entrusted Henglu Law Firm to handle the case for him.Wang XinruiThe lawyer filed a labor arbitration on behalf of the client.

After accepting the case, the lawyer communicated with the client as soon as possible, listed the issues and the list of materials, checked the evidence and confirmed the details with the client, formulated the litigation strategy, and represented Zhang * to claim overtime pay on corresponding rest days, unpaid annual leave pay, performance pay, compensation for unlawful termination of the labor contract, and wage differences. The company disagreed with the claims, stating that Zhang * was not competent for the job, that the failed negotiation for termination was initiated by Zhang * himself, that there was no fault on the company's part, and that the claims for overtime and performance pay were not recognized.

II. The focus of the case

  • Focus 1: Is it legal for the company to dismiss an employee for being unqualified for the job?If the termination of the contract does not meet the statutory conditions for termination, it is an illegal termination and the employer should compensate the employee accordingly.
  • Focus II: Should overtime pay, unpaid annual leave pay, and performance-based pay be supported?It shall be determined based on evidence such as attendance records and wage records.
  • Focus 3: Calculation standards for compensation for illegal termination of employment contracts.It is calculated based on the employee's years of service and monthly salary.

III. Professional intervention by Hengluo Lawyers

The worker claimed that:Zhang claimed that the company illegally terminated his employment and owed him overtime pay, annual leave pay, performance bonuses, and other wages, and demanded that the company pay him compensation and the difference in wages.

Employer's position:The company claimed that Zhang was not competent for the job and that the unsuccessful negotiation for termination was initiated by Zhang himself, so there was no fault on the company's part. The company also denied Zhang's claims for overtime pay and performance-based bonuses.

Hengluo Lawyer's Agency Opinion:Wang XinruiThe lawyer pointed out that according to the Labor Contract Law, the company's claim that the dismissal was due to the employee's incompetence does not meet the statutory conditions, and it is an illegal termination of the labor contract, so the company should pay compensation; and he/she also cross-examined and defended on such focus issues as overtime, performance, annual leave, etc., supporting the client's various claims with evidence.

IV. Outcome of the case

The Arbitration Commission adopted some of the lawyer's opinions, and in the final ruling, the respondent company was ordered to pay Zhang * the corresponding overtime pay on rest days of 38,068.97 yuan and compensation for the unlawful termination of the labor contract of 47,993.34 yuan. Beijing Henglu Law Firm professionally represented the worker in obtaining the benefits to which they are entitled.

5. Henglu Law Firm's Reminder

This case is handled by Beijing Henglu Law Firm.Wang XinruiThe lawyer (practice license number: 11101202111290829, subject to the documents issued by the judicial administrative organ) acts as the agent. "Compensation" and "compensation" are only one character apart, but they apply to different situations: economic compensation is compensation for lawful termination, while compensation is a two-fold punishment for unlawful termination. Beijing Hengluo Law Firm reminds workers to distinguish between the two and protect their rights in the event of unlawful dismissal.

VI. Common Questions and Answers about Labor Rights Protection

  1. Q: Is it legal for a company to dismiss an employee who is deemed unqualified for the job?
    A:It's illegal. Dismissing an employee directly on the grounds of incompetence does not meet the statutory requirements and is often considered an unlawful termination, for which the employer should pay compensation.
  2. Q: Can I claim overtime pay and annual leave pay?
    A:Yes. You can claim overtime pay for working on rest days and unpaid annual leave wages based on attendance records, salary records, and other relevant evidence.
  3. Q: How is the compensation for unlawful termination calculated?
    A:The economic compensation shall be calculated at twice the standard rate, with one month's salary paid for each year of service.
  4. Q: What is the difference between compensation and indemnity?
    A:Economic compensation applies to lawful terminations, while compensation applies to unlawful terminations and is calculated at a rate of twice the standard amount.
  5. Q: Can I arbitrate if the performance-based salary is not paid?
    A:Yes. If there are assessment and agreement-based criteria, you can claim that the company should pay the outstanding performance-based salary.