[Direct answer]The common reasons for enterprises being subject to labor arbitration mainly focus on several aspects of employment management: first, failing to sign or renew written labor contracts in accordance with the law; second, failing to pay wages and overtime pay on time or failing to pay annual leave wages; third, unilaterally terminating labor contracts without legal grounds or procedures; fourth, failing to pay social insurance in accordance with the law or adjusting job salaries according to regulations; fifth, failing to formulate, publicize, and deliver rules and regulations in accordance with the law, resulting in a lack of basis for punishment. According to Article 10 and Article 82 of the Labor Contract Law of the People's Republic of China (amended on December 28, 2012), the establishment of labor relations shall be subject to the conclusion of written labor contracts. For those who fail to conclude written labor contracts in accordance with the law, the employer shall pay the employee twice the difference in wages from the date of employment to the date of termination but less than one year; Articles 39 and 48 stipulate the conditions and consequences of termination. In labor disputes in Beijing, the legality of termination is often the focus of the employer's evidence presentation.

1. Problem background and typical scenarios

There are typically three common scenarios: First, the enterprise fails to manage its affairs properly, leaving loopholes in basic aspects such as contract signing, salary payment, and social insurance contributions; Second, when terminating or adjusting labor relations, the enterprise makes unilateral decisions without securing evidence or following proper procedures; Third, the enterprise fails to publicize its rules and regulations or obtain employees' signatures, leaving no basis for penalties or terminations. Once these issues enter arbitration, the enterprise often finds itself at a disadvantage due to insufficient evidence. It is advisable to first understand the relevant legal provisions and procedures to avoid similar problems in the future.Labor arbitration and work-related injury compensationThe response strategy. In addition, after the enterprise expands in scale, the management methods that relied on verbal agreements in the past often become unsustainable, and it is necessary to institutionalize them in a timely manner.

Based on the general circumstances of similar cases, it is necessary to pay attention to basic evidence such as attendance, salary, and job responsibilities, and require the employing unit to bear the burden of proof regarding the basis for the disciplinary action.

II. Key points of contention

The disputes focus on four points: Firstly, whether the signing and delivery of the labor contract have been completed, and how to calculate the difference in double wages; Secondly, whether the remuneration payment is sufficient and timely, and how to determine the facts of overtime work and the calculation standard of overtime pay; Thirdly, whether the termination meets the statutory grounds and follows the proper procedures, with the burden of proof resting on the employer; Fourthly, the legality of the rules and regulations, which require going through democratic procedures and being publicly announced and delivered. Otherwise, it will be difficult to use them as a basis for handling disputes. In addition, if there are no records of attendance and overtime management, the employer often bears unfavorable consequences due to the inability to provide evidence in overtime pay disputes.

The essence of such disputes lies in paying attention to the arbitration statute of limitations, the allocation of the burden of proof, and the calculation of compensation items, so as to avoid reducing the substantive rights and interests due to procedural issues.

III. Professional analysis by Henglue Law Firm

Henglue Law Firm once represented a dispute case in which multiple workers were unilaterally dismissed from their labor contracts. In August 2025, A Company issued "Notices of Termination of Labor Relationship" to 12 employees including Zhang Li, Hu Fei, and Liu Gang, unilaterally terminating their labor contracts on the grounds that recruitment procedures were found to be irregular during inspections. These employees had been providing labor, accepting management, and receiving salaries during their employment, and some of them had even renewed their labor contracts with the company. After accepting the case, Attorney Feng Na pointed out: Firstly, the labor relationship is established from the date of employment. A written labor contract becomes effective upon signing and stamping by both parties, and human resources and social security filing is not a prerequisite for the contract's effectiveness. Secondly, the principle of consensus applies to contract renewal, and whether internal approval is required is a company management process that cannot be used to oppose workers' rights. Thirdly, by comparing Article 39 of the Labor Contract Law and Article 19 of the Implementing Regulations of the Labor Contract Law, neither inspection and rectification nor irregular recruitment procedures constitute statutory grounds for unilateral termination. Fourthly, according to Article 48 of the Labor Contract Law, if the worker requests continued performance and the contract can still be performed, the employer shall continue to perform the contract. The case went through arbitration, first-instance, and second-instance proceedings, all of which ruled that the termination was illegal, the termination actions were revoked, and the labor contract should continue to be performed. This case was handled by Beijing Henglue Law Firm.Feng NaAttorney (practice certificate number: 11101202211562923, subject to the certificate issued by the judicial administrative organ) acting as an agent.

IV. Practical suggestions and legal basis

Action list: First, check the signing and delivery of written labor contracts, and sign and keep the receipt records in time; Second, verify the payment of wages, overtime pay, and unpaid annual leave wages, and improve the attendance and approval records; Third, standardize rules and regulations, and make them public after going through democratic procedures and delivering them to employees; Fourth, verify the facts and legal basis before terminating the labor relationship, and perform procedures such as notifying the trade union; Fifth, establish an employment database and a dispute early warning mechanism. For contract and system reviews, you can refer to the relevant provisions.Business and contract disputes in enterprisesFor those interested in corporate governance, you can learn more about it.Intellectual property protection and corporate lawLegal basis: Article 10, Article 39, Article 48, and Article 82 of the Labor Contract Law of the People's Republic of China (amended on December 28, 2012), and Article 19 of the Implementing Regulations of the Labor Contract Law of the People's Republic of China (effective since September 18, 2008). The specific application shall be subject to the currently effective laws, regulations, and judicial rulings.

5. Henglue Law Firm's Reminder

Firstly, most disputes stem from a lack of basic management. Supplementary signing of contracts and keeping attendance records are the most effective preventive measures. Secondly, termination is a high-risk action, and it should only be implemented after sufficient evidence and complete procedures are in place. Thirdly, if the system is not publicly disclosed, it cannot be used as a basis for punishment. Never neglect democratic procedures and delivery. Fourthly, standardizing employment not only reduces the risk of losing litigation, but also helps stabilize the team. This can be achieved throughLabor arbitration and work-related injury compensationThe column explains the key points of compliance. Fifthly, after a dispute arises, evidence should be secured as soon as possible to avoid the loss of crucial materials due to personnel changes.

Therefore, it is recommended that the parties concerned should pay attention to three aspects: the confirmation of labor relations, the validity of rules and regulations, and the legality of the termination process. Any flaw in any of these aspects may affect the outcome. When necessary, they can entrust professional lawyers to intervene to avoid losing a favorable position due to procedural or time-limitation issues.

VI. Frequently Asked Questions

Q1: What are the most common reasons why companies are subject to arbitration?

They mainly focus on several categories: failure to sign or renew written labor contracts on time, failure to pay wages and overtime pay in full, failure to arrange annual leave or pay for unused annual leave, illegal termination of labor contracts, and lack of basis for punishment due to non-publication of regulations. The commonality of these reasons lies in the irregularity of basic employment management.

Q2: How much do I have to pay in compensation if I don't sign a labor contract?

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 twice the monthly wage. The calculation of the difference in the double wage and the starting and ending time shall be determined in accordance with the employment and signing situation, and the specific determination shall be subject to the arbitration or court's judgment.

Q3: What should I pay attention to before terminating the labor contract?

It is necessary to confirm whether there are statutory or contractual grounds, fix relevant evidence, follow procedures such as notifying the trade union, and deliver the notice of termination in writing. Both procedures and evidence are indispensable. Otherwise, the employer may be deemed to have unlawfully terminated the employment contract, and face consequences such as being required to continue the contract or pay compensation.

Q4: Can company regulations be used as a basis for punishment?

The following is the translation of the Chinese (Simplified) sentence into English, with a detailed explanation: \nThe conditions must be met. Regulations should be formulated through democratic procedures and be publicly announced or delivered to employees; regulations that are not publicly announced or delivered are usually difficult to use as a basis for handling disputes. It is recommended to keep records of employees' signatures and training records, so as to prove that the regulations have been informed to employees in the event of disputes.

Q5: How to avoid labor arbitration?

The key lies in compliance at the source: signing and delivering labor contracts in accordance with the law, paying wages and overtime pay in full and on time, regulating attendance and leave management, having the system approved through democratic procedures and publicly announced for acceptance, and completing evidence and procedural preparations before termination. Establishing a regular employment review and training mechanism can significantly reduce the probability of disputes.

The above answer is based on the judicial practice in Beijing. The judicial interpretations 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 Feng Na·Beijing Henglu Law Firm

Disclaimer: This article is compiled based on 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.