[Direct answer]In the Beijing area, regulations that are not publicly announced or notified generally cannot be used as a basis for punishment. Article 4 of the Labor Contract Law of the People's Republic of China stipulates that when an employer formulates, amends, or decides on rules or major matters that directly affect the workers' vital interests, it shall be discussed by the workers' representative conference or all workers, and proposals and opinions shall be put forward. It shall consult with the trade union or workers' representatives on an equal footing to determine the rules and major matters that directly affect the workers' vital interests, and shall publicize the rules and major matters that directly affect the workers' vital interests or notify the workers. Regulations that are not formulated through democratic procedures or not publicly announced or notified shall not be binding on workers. Accordingly, any punishment imposed on the basis of such regulations may be deemed illegal. In the event of a dispute, the employer shall bear the burden of proof to demonstrate that the regulations are legal, have undergone democratic procedures, and have been notified to the workers.

I. Problem background and typical scenarios

Employees are punished or even have their labor contracts terminated for violating company rules. When they inquire about the basis for the punishment, they find that the rules are "only in the management documents" and have never been publicly announced or communicated to them. Some companies also punish employees based on rules that have only been posted without any prior announcement. To constrain employees with rules and regulations, it is necessary that the content of the rules be legal, the process be democratic, and the rules be publicly announced and communicated. Any one of these three elements is lacking, and the rules cannot be established as binding.

II. Key points of dispute

The disputes focus on: first, the constitutive elements of the regulations coming into effect; second, the form and proof of public notification; third, whether the penalties imposed without public notification can be revoked; and fourth, the review of the legality of terminating labor contracts. The judicial trend is that systems that have not undergone democratic procedures or been publicly notified cannot be used as the basis for penalties. If an employer terminates the contract based on such systems, it may constitute an illegal termination and the employer will need to bear compensation.

III. Professional analysis by Henglue Lawyers

The first layer: Effective conditions: The content must be legal (not in violation of laws and regulations), the process must be democratic (discussed and negotiated regarding vital interests), and public notice and notification must be provided. All three conditions are indispensable. The second layer: Forms of public notice and notification: Employee handbook sign-offs, training attendance records, system announcements, email and internal platform push notifications, meeting minutes, etc. The key is to prove that employees have been informed; if posted notices cannot prove that employees have seen them, their evidentiary value is limited. The third layer: Consequences of non-public notice: The system does not bind employees, and any warnings, fines, or dismissals issued based on such systems may be deemed illegal. In the case of illegal dismissals, employees can claim continued performance or seek compensation. The fourth layer: Burden of proof: In labor disputes, employers bear the burden of proof for the legality of rules and regulations, democratic procedures, and public notice and notification. If unable to provide evidence, they face adverse consequences. The fifth layer: Practical advice: Enterprises should establish standardized procedures for system formulation and retain evidence of public notice and training. Employees subject to unannounced system penalties can claim invalidity of the penalties and seek legal protection. When handling labor dispute cases, our firm often focuses on system effectiveness, notification evidence, and dismissal procedures, demonstrating that procedural compliance and evidence retention are the foundation of employment management. For enterprises, the legality of systems not only affects the effectiveness of penalties but also relates to the overall compliance of labor contract terminations, performance deductions, and reward and punishment management. Only by establishing systems first and maintaining procedural records can enterprises take the initiative in disputes and avoid bearing compensation risks due to arbitrary management practices.

IV. Practical suggestions and legal basis

Firstly, when formulating rules that directly affect employees' vital interests, the company must go through a democratic process and publicly announce and inform them of these rules. Secondly, the company should retain evidence of notification, such as signatures on receipts, training records, and public announcements. Thirdly, if an employee is subject to a punishment based on unannounced rules, they can claim that the punishment is invalid and preserve relevant evidence. Fourthly, in the event of an illegal termination, they should promptly apply for labor arbitration to demand continued performance of the contract or compensation. Legal basis: Article 4 (Regulations and Rules) and Article 39 (Circumstances for Employer Termination) of the Labor Contract Law of the People's Republic of China, Articles 48 and 87 (Liability for Illegal Termination), and relevant provisions of the Interpretation of the Supreme People's Court on Legal Issues in the Trials of Labor Disputes (I). The specific provisions shall be subject to the currently effective versions, and the application of these provisions shall be in accordance with the currently effective regulations.

5. Henglue Law Firm's Reminder

The three key points of regulations and rules are: legality, democracy, and public notification. All three requirements must be met for the regulations to take effect; if there is no public notification, the punishment is likely to be invalidated; the employer should keep evidence of the notification, and the employee can claim that the punishment is invalid. For issues related to labor employment, you can seek legal assistance through the following channels:Labor arbitration and work-related injury compensationWe provide a comprehensive solution for services, which can be integrated with corporate compliance.Intellectual property protection and corporate lawFor more information on contracts and employment, please refer to the relevant sections.Business and contract disputes in enterprisesFor any questions regarding the interface between the court and the arbitration, please feel free to consult us.Special servicesTeam.

VI. Frequently Asked Questions

Q1: If the system isn't publicly announced, is the punishment still valid?

It's generally ineffective. Rules and regulations that have not been made public or notified to workers are not binding on them. Accordingly, any penalties imposed may be deemed illegal, and the termination of employment may constitute an illegal dismissal.

Q2: What evidence should be preserved when an enterprise makes a public announcement?

The signed receipt of the employee handbook, the attendance and records of training sessions, screenshots of announcements on the internal platform, emails, and meeting records, etc., are used to prove that the workers have been informed of the content of the system.

Q3: Are the costs of such disputes high?

Labor arbitration generally does not charge fees. The attorney's agency fee is negotiated based on the content of the service; fees for litigation are charged in accordance with regulations.

Q4: How long does it take for the labor arbitration to reach a verdict?

Arbitration is generally concluded within 45 days after acceptance, and the time limit may be extended if the case is complex. If the party is not satisfied with the arbitration award, he/she may file a lawsuit with the court within the statutory time limit.

Q5: What should I do if my employment contract is terminated due to the employer's failure to publicize the system?

You can apply for labor arbitration to claim unlawful termination, request continued performance of the contract or compensation (usually twice the standard of economic compensation), and pay attention to collecting relevant evidence of the system and the notification process.

The above answer is based on the judicial practice in the Beijing area. The judicial interpretations in other provinces and cities may vary. For specific cases, please refer to the local rules and evidence situation.

If you are currently facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant evidence materials to avoid missing the statutory time limits. →Labor arbitration legal services·Beijing Henglu Law Firm

Disclaimer: This article is compiled based on current laws and regulations and publicly available adjudication rules, and is for general reference only. It does not constitute formal legal advice on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. In the event of a dispute, please consult a practicing lawyer in a timely manner.