[Direct answer]In the Beijing area, the key issue is whether the worker was assigned to a new employer by the original employer without their own fault. According to the Implementing Regulations of the Labor Contract Law of the People's Republic of China, if a worker is assigned to a new employer by the original employer without their own fault, the worker's working years at the original employer shall be counted as part of the working years at the new employer; except where the original employer has already paid economic compensation. To determine whether it is without the worker's own fault, it is usually necessary to consider whether the new and old employers are related, whether the change of the labor relationship is initiated by the employer, whether the work location and content are continuous, whether the social insurance payment is continuous, and whether the entity paying the wages has changed. If it is indeed a transfer between related companies and not the worker's own fault, the working years should be counted continuously, which will affect the determination of economic compensation, annual leave, and fixed-term contracts.
I. Problem background and typical scenarios
When transferring between a group or affiliated companies, what employees care most about is whether their length of service will be reset. Common scenarios include: the subject of the labor contract being changed from Company A to its affiliated Company B, with the work location, position, and responsibilities remaining unchanged, and social insurance continuing to be paid; some units use this to reduce economic compensation or avoid fixed-term contracts. Whether the length of service can be continuously calculated depends on whether the transfer is arranged by the unit or initiated by the employee themselves.
II. Key points of dispute
First, the criteria for determining that the termination of the employment relationship is not due to the employee's own reasons. Second, whether the new and old units constitute a related relationship. Third, the impact of whether the original unit has paid economic compensation. Fourth, the impact of continuous calculation of the employee's seniority on economic compensation, annual leave, and non-fixed-term contracts.
III. Professional analysis by Henglue Law Firm
When determining whether the working years of an employee are continuous after a transfer to a related company, Henglue Lawyers typically assess this from three aspects: subject identity, reason for the transfer, and continuity. First, subject identity: Verify whether the shareholders, legal representatives, and actual controllers of the old and new companies overlap, whether they belong to the same group system, or whether they are related enterprises. Second, reason for the transfer: Determine whether the change in the labor contract subject was arranged by the employer or whether the employee was forced to accept it; whether the work location, position, and work content remain the same; and whether social insurance payments are overlapping or continuous. Third, handling of economic compensation: If the original employer has legally paid economic compensation, the new employer may not consolidate the working years; if no compensation was paid and the transfer was not due to the employee's own reasons, the working years at the original employer should be consolidated. Fourth, impact scope: Continuous working years directly affect the number of months of economic compensation, the number of days of annual leave, and the conditions for signing an indefinite-term labor contract. Taking a labor dispute case handled by our firm as an example: The employee worked at the same location and performed the same duties for a long time. A dispute arose due to the change in the subject identity. Henglue Lawyers argued for the continuity of the working years based on the facts of overlapping social insurance payments, unchanged work content, and the existence of a related relationship, and the claim was supported by the arbitral tribunal. It can be seen that evidence of subject continuity and reason attribution is the key to determining whether working years are considered continuous.
IV. Practical suggestions and legal basis
The first step is to verify whether the new and old companies are related, and whether the change of the subject of the labor contract was arranged by the unit; the second step is to collect social security payment records, salary records, work permits, attendance records, and job descriptions to prove that the work location and content are continuous; the third step is to confirm whether the original unit has paid economic compensation, and to determine whether the length of service should be calculated cumulatively; the fourth step is that if the length of service is reset to zero, the employee can apply for labor arbitration to claim economic compensation, annual leave, and other corresponding rights. For those involved in special services, they can also seek legal remedies through other channels.Special servicesThe channel understands. The main legal basis: Article 47 and Article 14 of the Labor Contract Law of the People's Republic of China (amended in 2012), Article 10 of the Implementing Regulations of the Labor Contract Law of the People's Republic of China (implemented in 2008), and the relevant provisions of the Interpretation of the Supreme People's Court on the Application of Law in the Trials of Labor Dispute Cases (I); the specific application shall be subject to the currently effective laws, regulations and judicial judgments.
5. Henglu Law Firm's Reminder
There are three consecutive sentences about work experience: If the employee is assigned to a new unit for reasons beyond his/her control, the work experience shall be counted cumulatively; the core evidence includes the relationship of affiliation, the continuity of work and social insurance, and exceptions apply to cases where the original unit has already paid economic compensation. For cases involving labor arbitration and work-related injury compensation, the parties may proceed through legal channels.Labor arbitration and work-related injury compensationFor a comprehensive solution to the service, you can consult us about the review of changes to the main parties of the labor contractBusiness and contract disputes in enterprisesFor reference, you can check the sections related to labor compliance in enterprisesSpecial servicesColumn.
VI. Frequently Asked Questions
Q1: Will the length of service be reset if I switch to a related company?
Not necessarily. If the employee is assigned by the original unit to a related new unit for reasons other than his/her own, the working years in the original unit should be combined with the years in the new unit; except for the cases where the original unit has already paid the employee economic compensation.
Q2: How to prove that it's not due to my own reasons?
It can be proven by comprehensive evidence such as the change of the main body led by the unit, the unchanged work location and content, the continuous or cross-paying of social insurance, and the change of the wage payment main body, forming a complete chain. For the change of the contract, you can refer to it for referenceBusiness and contract disputes in enterprisesColumn.
Q3: What are the implications of having a continuous work history?
It directly affects the calculation of economic compensation, the number of days of annual leave, and whether the conditions for signing a non-fixed-term labor contract are met. Therefore, the determination of work experience is often the focus of disputes.
Q4: Can the previous employer still count the compensation as continuous service time if they have already provided compensation?
If the original employer has paid the employee economic compensation in accordance with the law, the new employer shall not combine the employee's working years when calculating their seniority; if the original employer has not paid the compensation and the employee's transfer is not due to their own reasons, the working years should be combined and calculated accordingly.
Q5: What should I do if my work experience is reset to zero?
You can negotiate with your employer. If no agreement can be reached, you can apply for labor arbitration to claim the continuous calculation of your working years and corresponding economic compensation, as well as annual leave benefits. Please note to keep evidence of social insurance, wages, and positions. For labor rights protection solutions, you can consult the following channels:Labor arbitration and work-related injury compensationI understand the channel.
This article is written based on the common judicial interpretations in the Beijing area. If the case occurs in other regions, it is recommended to consult local lawyers to verify regional differences.
If you are currently facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant evidence, to avoid missing the statutory time limits.Labor arbitration legal services·Beijing Henglue Law Firm
Disclaimer: This article is compiled based on the current effective laws and regulations and open adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. If you encounter disputes, please consult a practicing lawyer in time.