[Direct answer]In the Beijing area, it is not necessary to implement the "zero-COVID" policy. The key question is whether the change of employer is due to reasons beyond the employee's control. According to Article 10 of the Implementing Regulations of the Labor Contract Law of the People's Republic of China, if an employee is transferred from the original employer to a new employer without his/her own fault, the working years with the original employer shall be counted as part of the working years with the new employer, unless the original employer has already paid the employee economic compensation. If the company only changes its name, undergoes a split or merger, experiences changes in equity ownership, or arranges for employees to sign new contracts with related entities, but the work location, position, and responsibilities remain unchanged, the working years should generally be counted as continuous. Conversely, if the employee voluntarily resigns and then re-joins the company, and the original employer has already paid the employee economic compensation, the working years may be restarted. In the event of a dispute, the employee may claim continuous calculation by referring to social insurance records, payroll records, labor contracts, and industrial and commercial change records.
1. Problem background and typical scenarios
The company's name change, spin-off, acquisition, or requiring employees to sign new contracts with the new company are high-incidence scenarios of disputes over working years. Workers are concerned about their working years being reset to zero, their economic compensation being reduced, and their annual leave and eligibility for indefinite-term contracts being affected. Whether the working years are reset to zero depends on the reasons and substance of the changes, rather than the entity listed on the contract.
II. Key points of contention
First, the nature of the change in the main body: whether it is a name change, merger, spin-off, transfer of affiliation, or voluntary resignation and re-employment. Second, whether it is due to reasons beyond the employee's control. Third, whether the original employer has paid economic compensation. Fourth, the impact of continuous calculation of seniority on compensation, annual leave, and contract types.
III. Professional analysis by Henglue Lawyers
When determining whether the length of service is reset when a company changes its legal entity, Henglu Lawyers typically assess this from three aspects: the nature of the change, the attribution of the reason for the change, and the chain of evidence. First, the nature of the change: Distinguish between a simple name change or a merger or split (continuation of legal person status) and a re-signing of contracts between related companies. In the former case, the legal entity has not actually changed; in the latter case, it is necessary to determine whether the change was due to factors beyond the employee's control. Second, the attribution of the reason for the change: Verify whether the change was initiated by the employer, whether the employee was forced to accept it, whether the work location and content have continued, and whether social insurance payments were made continuously or overlapping. Third, the chain of evidence: Retrieve the business registration change records, the signing parties of the labor contract, social insurance payment records, the payroll issuers, and work badges, etc., to form a complete set of evidence demonstrating the continuity of the legal entity and the reasons for the change. Fourth, legal consequences: If the change was not due to factors beyond the employee's control, the length of service will be consolidated. Exceptions include cases where the original employer has already paid economic compensation. Whether the length of service is continuous directly affects the number of months of economic compensation, the number of days of annual leave, and the conditions for entering into an indefinite-term labor contract.
IV. Practical suggestions and legal basis
The first step is to collect records of changes in industrial and commercial registration, labor contracts, social insurance payments, and wage payments to determine the nature of the change in the subject; the second step is to confirm whether the change was arranged by the unit, whether it was due to the employee's own reasons, and whether the original unit has paid economic compensation; the third step is to raise objections in a timely manner and keep records of the communication if the employee's seniority is unilaterally reset to zero; the fourth step is to apply for labor arbitration if no agreement is reached to claim the continuous calculation of seniority and corresponding rights, and for special services, relevant disputes can be resolved through legal channels.Special servicesThe channel understands. The main legal basis: Article 14 and Article 47 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 provisions on company mergers and divisions in the Company Law of the People's Republic of China (amended in 2023); the specific application shall be subject to the currently effective laws and regulations and judicial rulings.
5. Henglue Law Firm's Reminder
Three sentences about the change of subject: Changing the name and splitting the company does not mean that the employee's seniority will be reset. Transfers that are not due to the employee's own reasons should be counted together; except for those whose original units have already paid economic compensation. Industrial and commercial changes, social insurance, and wage records are key evidence. For cases involving labor arbitration and work-related injury compensation, you can proceed through the following channels:Labor arbitration and work-related injury compensationFor those who need help with the overall solution for services involving corporate entity changes and labor contract reviews, please feel free to consult us.Business and contract disputes in enterprisesFor plates related to specific aspects of enterprise operation, you can refer to them for referenceSpecial servicesColumn.
VI. Frequently Asked Questions
Q1: If a company changes its name or legal entity, will the employee's seniority be reset to zero?
Generally, no. A company's name change, division, or merger constitutes a continuation of the entity; if an employee is transferred to a new affiliated unit for reasons beyond their control, the working years at the original unit should be counted together, unless the original unit has already paid the employee economic compensation.
Q2: Does signing a new contract with a new company count as being newly employed?
It depends on the circumstances. If the employment arrangement is made by the employer, the work location and content remain the same, and social insurance is continuously paid, it essentially means that the employee did not voluntarily resign and then be rehired. In this case, the employee's working years should generally be counted continuously.
Q3: How to prove that the length of service should be continuous?
You can submit documents such as the registration of industrial and commercial changes, social insurance payment records, bank statements of wages, work permits and attendance records, job descriptions, etc. to prove that the continuation and transfer of work are initiated by the unit. For matters involving contract review, you can refer to the relevant documents for referenceBusiness and contract disputes in enterprisesColumn.
Q4: Which benefits will be affected if the length of service is reset to zero?
It mainly affects the calculation of economic compensation, the number of days of annual leave, and the conditions for signing a non-fixed-term labor contract. Therefore, it is necessary to assert your rights and fix the evidence as soon as possible.
Q5: What should I do if my unit unilaterally clears my leave balance?
You can first raise objections in writing and negotiate with the employer. If no agreement is reached, you can apply for labor arbitration to claim the continuous calculation of your work experience and corresponding compensation. For labor rights protection plans, you can seek assistance through the following channels:Labor arbitration and work-related injury compensationI understand the channel.
The above content is based on the compilation of judicial practices in the Beijing area. The facts of individual cases and the jurisdiction of the court may affect the conclusions. Welcome to consult Henglue Lawyers for specific situations.
If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant evidence materials, so as to avoid missing the statutory time limit. →Labor arbitration legal services·Beijing Henglu 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. In case of disputes, please consult a practicing lawyer in time.