[Direct answer]Generally, they cannot be claimed simultaneously. Economic compensation applies to legal circumstances such as the employer terminating or rescinding the labor contract in accordance with the law, and is calculated based on the employee's length of service and monthly salary according to Article 47 of the Labor Contract Law of the People's Republic of China (amended in 2012). Compensation applies to the employer's illegal termination or rescission of the labor contract, and is paid to the employee at twice the standard of economic compensation according to Articles 48 and 87 of the same law. The two apply to different circumstances: for legal termination or rescission, economic compensation is claimed; for illegal termination or rescission, compensation is claimed, and they usually cannot be obtained simultaneously. When arbitrating or litigating, workers should choose their claims based on the specific reasons for the termination to avoid affecting the judgment due to improper claims.

1. Problem background and typical scenarios

When terminating a labor contract, employees often simultaneously file requests for both economic compensation and compensation payments. In practice, courts generally only support one of these two requests. The key to distinguishing them lies in whether the termination action is legal: if the employer terminates or terminates the contract based on statutory grounds, they shall pay economic compensation; if the employer terminates the contract without statutory grounds or in violation of legal procedures, it constitutes an illegal termination, and the employer shall pay double compensation. When handling labor dispute cases in Beijing, arbitration and courts will first review the legality of the termination, and then determine the applicable form of liability. Choosing the correct request directly affects the outcome of the case, and whether the evidence is sufficient is related to the determination of the legality of the termination.

II. Key points of dispute

There are four points that need to be clarified: Firstly, what are the differences in the application scenarios of economic compensation and compensation money; Secondly, whether the compensation money is twice the standard of economic compensation; Thirdly, whether the two requests can be substituted for or superimposed on each other; Fourthly, the handling and modification path when the claim is wrong. Generally, the two are in a substitution relationship and cannot be obtained at the same time; workers should choose their requests according to whether the termination is legal, and focus their evidence on the reasons and procedures for termination. The completeness of the evidence directly affects the judgment of the legality of the termination, and when necessary, they can also claim other legitimate rights such as wages, overtime pay, and unpaid annual leave wages.

III. Professional analysis by Henglue Law Firm

A labor dispute case handled by Henglue Law Firm illustrates that claims for economic compensation or damages must be premised on the establishment of a labor relationship. Liu Lei participated in the start-up of Beijing A Company in the capacity of technical chief and signed a "Cooperation and Operation Agreement" with the legal representative and a third party, agreeing to hold 20% of the virtual equity. However, the two parties never signed a labor contract or paid salaries. In April 2023, Liu Lei issued a "Notice of Forced Termination of Labor Relationship" on the grounds of unpaid compensation and unfulfilled obligations, demanding the confirmation of the labor relationship, payment of wages, economic compensation, and double wage compensation totaling 2.12 million yuan. A Company entrusted Xue Shuhua, a lawyer from our firm, to defend against the lawsuit, arguing that the two parties only had a cooperative relationship and no labor relationship. Lawyer Xue focused on the personal dependency and economic subordination of the labor relationship, pointing out that the agreement stipulated virtual equity and dividends rather than fixed wages. Liu Lei independently determined working hours, maintained social insurance in other units, and controlled the external projects undertaken by affiliated companies, which did not meet the characteristics of subordination of workers. The first-instance court adopted the lawyer's argument, ruling that there was no labor relationship between the two parties and rejecting all of Liu Lei's claims. After Liu Lei appealed, the second-instance court upheld the original judgment and successfully rejected his claim for 2.12 million yuan. This case shows that whether claiming economic compensation or damages, the first step is to pass the test of labor relationship identification; after the establishment of a labor relationship, the claimant can choose the appropriate request based on the legality of the termination. This case was handled by Beijing Henglue Law Firm.Xue SuhuaThe attorney (practice license number: 11101201211769926, subject to the document issued by the judicial administrative organ) acts as the agent.

IV. Practical suggestions and legal basis

Action suggestions: First, review the notice of termination and the procedures to determine whether the termination is legal; Second, claim economic compensation for a legal termination or termination, and claim double compensation for an illegal termination; Third, do not claim two conflicting requests at the same time, and clarify the change in the courtroom when necessary; Fourth, simultaneously claim other rights such as unpaid wages, overtime pay, and unpaid annual leave. For labor disputes, you can refer to the relevant provisions of the Labor Law and the Labor Contract Law.Labor arbitration and work-related injury compensationFor matters related to the compliance of enterprise employment practices, you may refer to the following resources for reference:Intellectual property protection and corporate complianceLegal basis: Articles 46, 47, 48, and 87 of the Labor Contract Law of the People's Republic of China (amended in 2012), and relevant provisions. The specific application shall be subject to the currently effective laws, regulations, and judicial decisions.

5. Henglue Law Firm's Reminder

Firstly, the circumstances in which economic compensation and compensation for damages apply are different, and they usually cannot be claimed simultaneously. Secondly, the compensation for damages in the case of illegal termination is twice the standard of economic compensation. Thirdly, first determine whether the termination is legal, and then choose to make a request. Fourthly, in addition to the two requests, employees can also claim rights such as wages and overtime pay. For labor disputes, they can seek resolution through legal channels.Labor arbitration and work-related injury compensationThe service is supported, and you can refer to it when handling difficult and complex casesSpecial servicesColumn.

VI. Frequently Asked Questions

Q1: Can I claim both economic compensation and damages at the same time?

Generally, this is not allowed. The two apply to different circumstances and are in a substitution relationship: if the employer legally terminates or terminates the employment contract, the employee can claim economic compensation; if the employer illegally terminates or terminates the employment contract, the employee can claim double compensation. At the same time, claiming both of them will usually not be supported. It is recommended to choose one of them based on the specific reasons for the termination.

Q2: How is the compensation for illegal termination calculated?

According to Article 87 of the Labor Contract Law, if an employer unlawfully terminates or terminates a labor contract, it shall pay compensation to the worker in an amount equal to twice the standard of economic compensation. The standard of economic compensation is calculated based on the length of service and monthly salary, so the compensation is twice that standard, and the economic compensation itself will not be calculated separately.

Q3: Is there compensation for a legal termination of the contract?

Whether economic compensation needs to be paid for lawful termination depends on the specific circumstances of the termination. According to Article 46, economic compensation should be paid in the following situations: termination by mutual consent, termination due to the employer's illegal actions forcing the employee to terminate the contract, and termination due to the employer's staff reduction. However, termination due to the employee's serious violation of disciplinary rules generally does not require the payment of economic compensation. The specific circumstances shall prevail.

Q4: What should I do if my claim is wrong?

Requests or additional claims can be amended in arbitration or litigation. If conflicting requests are submitted at the same time, the court will usually clarify and require a clear choice. To avoid being passive, it is recommended that lawyers evaluate the legality of the termination before applying for arbitration, determine whether to claim economic compensation or damages, and prepare the corresponding evidence.

Q5: What else can I claim at the same time?

In addition to economic compensation or damages, you can also claim arrears in wages, overtime pay, unpaid annual leave wages, the difference in wages of twice the amount due to the lack of a written labor contract, and retroactive payment of social insurance. The applicable conditions and calculation methods for each request are different. You should provide evidence for each claim and specify the amounts separately to avoid omissions or duplicate claims.

The above Q&A is mainly based on the judicial practice in Beijing. There may be differences in the adjudication opinions in different regions. It is recommended to consult a professional lawyer based on the specific circumstances of the case.

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 Xue Suhua·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 a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. If a dispute arises, please consult a practicing lawyer in a timely manner.