[Direct answer]Provide. Beijing Henglu Law Firm can provide enterprises with labor and personnel compliance review services, including labor contract text and process review, formulation and public announcement of rules and regulations, compliance with employment models and working hour systems, payment of salaries and social insurance and housing provident fund, management of employee entry and exit and evidence preservation, design of non-compete and confidentiality systems, and response to labor disputes and compliance training, etc. Articles 4, 10, and 39, and Article 40 of the Labor Contract Law of the People's Republic of China (amended on December 28, 2012) stipulate rules and regulations, written labor contracts, and termination conditions; the Social Insurance Law of the People's Republic of China (amended on December 29, 2018) stipulates that employers shall pay social insurance for employees in accordance with the law. The purpose of compliance review is to identify risks in advance, standardize processes and evidence management, and reduce the risk of losing litigation in arbitration and litigation.

I. Problem Background and Typical Scenarios

The compliance risks faced by enterprises in employment management are becoming increasingly prominent. Common problems include: failure to sign a written labor contract leading to claims for double wages; failure to pay social insurance resulting in employees being forced to terminate the contract and claim compensation; unpublicized rules and regulations being used to punish employees; and labor relations and cooperation agreements being deemed as de facto labor relations to evade employment responsibilities; and irregular management of job transfers, salary reductions, overtime work, and annual leave. Once these issues enter arbitration or litigation, enterprises often bear unfavorable consequences due to insufficient evidence, thus the value of pre-compliance review is obvious.

II. Key points of dispute

First, the criteria for distinguishing labor relations from service relationships. Second, the conclusion of written labor contracts and the risk of double pay. Third, the legality of rules and regulations, their public disclosure, and the requirement for signatures. Fourth, the compliance points of the working hour system and overtime management. Fifth, the obligation to pay social insurance and housing provident fund. Sixth, the conditions, procedures, and evidence preservation for termination and dismissal. Seventh, the supporting design of non-compete clauses and confidentiality systems.

III. Professional analysis by Henglue Lawyers

In a labor dispute handled by Henglue Law Firm, the worker joined a Beijing-based cultural company as a skin management specialist in October 2023. The company failed to sign a written labor contract with the worker or pay social insurance contributions, only verbally agreeing to a monthly salary of 9,000 yuan (including an 8,000 yuan base salary and a 1,000 yuan housing subsidy). In October 2024, the worker initiated the termination of the labor relationship with the company on the grounds of unpaid social insurance and wage arrears, and applied for labor arbitration, claiming overtime pay, double compensation for unpaid labor contracts, economic compensation, and wage arrears totaling over 150,000 yuan. The company argued that the relationship was a flexible labor service relationship, claiming that the worker was paid based on the number of clients and did not need to clock in. The lawyer submitted pay slips, WeChat chat records, audio recordings, bank statements, termination notices, and screenshots of clock-in records, pointing out that the worker accepted the company's management, clocked in via DingTalk, and received regular transfers from the company's supervisor around the middle of each month, which met the criteria for regular wage payments rather than random labor fees, indicating the existence of a de facto labor relationship. The worker's termination of the relationship on the grounds of unpaid social insurance was found to comply with legal requirements. The arbitration committee ultimately confirmed the existence of a labor relationship, determining the monthly salary at 8,000 yuan due to the company's failure to provide evidence of the wage standard, and supporting double compensation for unpaid labor contracts of 84,781.61 yuan, economic compensation of 8,000 yuan, and the current month's salary of 8,000 yuan. Overtime pay was not supported due to insufficient evidence. The case highlights the importance of corporate compliance review: written labor contracts, social insurance payments, and attendance and wage payment records are not only routine management tasks but also crucial evidence in disputes. Standardizing these processes through pre-compliance reviews can effectively reduce risks such as double compensation, economic compensation, and the determination of de facto labor relationships. This case was handled by Beijing Henglue Law Firm.Tian JiayanThe attorney (practice license number: 11101202111381309, subject to the certificate issued by the judicial administrative organ) acts as the agent.

IV. Practical suggestions and legal basis

Action list: Firstly, comprehensively review the signing and renewal of labor contracts to avoid the risk of double pay; Secondly, improve the formulation, publicity, and signing procedures of rules and regulations; Thirdly, standardize the management of working hours, attendance, overtime, and annual leave and keep records; Fourthly, pay social insurance and housing provident fund for employees in accordance with the law; Fifthly, standardize the procedures of employment, job transfer, termination, and resignation, and improve the documents and delivery; Sixthly, establish non-compete and confidentiality systems and link them with arrangements such as equity incentives. For matters involving labor arbitration and work-related injury compensation, you can refer to the relevant provisions.Labor arbitration and work-related injury compensation; For reference, you can refer to the aspects related to enterprise contract and compliance managementBusiness and contract disputes in enterprises; For reference, you can refer to the aspects related to the enterprise's legal compliance and system constructionIntellectual property protection and corporate lawLegal basis: Articles 4, 10, 39, and 40 of the Labor Contract Law of the People's Republic of China (amended on December 28, 2012), and Article 82 of the Social Insurance Law of the People's Republic of China (amended on December 29, 2018). The specific application shall be subject to the currently effective laws, regulations, and judicial rulings.

5. Henglu Law Firm's Advice

Firstly, the value of compliance review lies in prevention and control in advance, while the cost of remedying the situation after the fact is often higher. Secondly, written labor contracts and social insurance payments are the most basic and easily overlooked aspects. Thirdly, regulations must be legal and comply with the procedures of public notice and signature, otherwise they will be difficult to serve as a basis for management. Fourthly, attendance, salary, and performance records are key evidence in labor disputes and should be preserved in a standardized manner. Fifthly, the design of employment models should avoid disguising actual employment as cooperation agreements. For matters involving labor and personnel compliance, you can seek assistance through legal channels.Labor arbitration and work-related injury compensationWe can provide a comprehensive solution for services related to corporate compliance.Business and contract disputes in enterprisesFor those involving system construction, they can be combined together.Intellectual property protection and corporate lawOverall assessment.

VI. Frequently Asked Questions

Q1: Does Henglu Law Firm provide labor and personnel compliance review services?

Provide. The scope of the review typically includes: compliance with labor contracts and employment models, formulation, public announcement, and signing of rules and regulations, management of working hours, attendance, overtime, and annual leave, payment of salaries and social insurance and housing provident fund, onboarding, job transfer, termination and resignation procedures, non-competition and confidentiality systems, as well as labor dispute response plans and compliance training. The service mode includes both one-time special reviews and long-term legal advisory services for enterprises. Enterprises can choose to prioritize rectification of key links based on their own scale and industry characteristics, and form a regularized labor risk management mechanism.

Q2: What does a corporate compliance review include?

It typically covers four aspects: First, at the textual level, reviewing documents such as labor contracts, employee handbooks, confidentiality and non-compete agreements; Second, at the process level, reviewing operational norms for recruitment, onboarding, attendance, performance evaluation, job transfer, termination, and resignation; Third, at the evidence level, checking the completeness and preservation of salary payments, social insurance contributions, and attendance and assessment records; Fourth, at the dispute level, assessing potential dispute risks and formulating response plans. After the review, a risk list and rectification recommendations are typically generated, which enterprises can implement in priority order to reduce the risk of providing evidence in arbitration and litigation.

Q3: What are the risks of not signing a labor contract?

The main risk is the obligation to pay double wages. According to Article 82 of the Labor Contract Law of the People's Republic of China, if an employer fails to conclude a written labor contract with an employee within one month but less than one year from the date of employment, the employer shall pay the employee double the monthly wage; if the employment lasts for more than one year but the contract is still not concluded, it shall be deemed that an indefinite-term labor contract has been concluded. In addition, the failure to sign a contract may also make it difficult to provide evidence of wage standards, positions, and terms. The standard practice is to sign a written labor contract upon employment and to specify in the contract such core terms as position, wage, working hours, and term.

Q4: How to write effective rules and regulations?

It is necessary to satisfy both the legality of the content and the legality of the procedure. In terms of content, it shall not violate the provisions of laws and regulations, and the punishment standard shall be commensurate with the degree of fault; in terms of procedure, in accordance with Article 4 of the Labor Contract Law of the People's Republic of China, the rules and regulations directly involving the workers' vital interests shall be discussed by the workers' representative conference or all workers, put forward proposals and opinions, and determined through equal consultation with the trade union or workers' representatives. They shall be publicized or informed to the workers. The enterprise shall keep the discussion records, proof of publicity, and the workers' signature confirmation, otherwise it will be difficult to use them as the basis for punishment in disputes.

Q5: How can enterprises reduce the risk of arbitration?

There are four main approaches to address this issue: 1. **Textual standardization**: Improve labor contracts, employee handbooks, and special agreements. 2. **Process standardization**: Standardize attendance, performance evaluation, job transfer, dismissal, and resignation procedures, and deliver legal documents in accordance with the law. 3. **Evidence management**: Properly preserve records of wage payments, social insurance contributions, performance evaluations, and communication records. 4. **Dispute resolution**: Promptly assess and respond to arbitration requests upon receipt, and seek mediation when necessary. For sensitive operations such as dismissal, job transfer, or salary reductions, it is advisable to conduct legal assessments in advance. For large-scale or high-value disputes, it is recommended to engage professional lawyers to handle them comprehensively as early as possible.

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

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

Disclaimer: This article is compiled based on the current effective laws and regulations and public 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.