[Direct answer]Yes. According to Article 38 of the Labor Contract Law of the People's Republic of China (amended in 2012), if the employer fails to pay the employee's labor remuneration in full and on time, the employee may terminate the labor contract; according to Article 46 (1), if the employee terminates the contract in accordance with Article 38, the employer shall pay economic compensation. The economic compensation shall be calculated based on the employee's length of service in the unit. For each completed year of service, the employer shall pay one month's salary; for a period of more than six months but less than one year, it shall be calculated as one year; and for a period of less than six months, it shall be paid half a month's salary. The specific standards are set out in Article 47. Three key points need to be noted: first, it is necessary to distinguish between arrears and normal delayed payments, and to clarify the fact that the employer has failed to pay in full and on time; second, the employee should provide a written explanation of the reasons for termination and deliver it to the employer, and keep the relevant evidence; third, it is necessary to apply for labor arbitration in a timely manner, paying attention to the general one-year statute of limitations. If the employer only negotiates with the employee to postpone payment due to operational difficulties and has fulfilled the agreement, it will be difficult to determine that the termination is due to being forced to do so.
1. Problem background and typical scenarios
Arrears in wages are one of the most common causes of labor disputes. Typical scenarios include: wages being delayed for a long time, which affects employees' lives; the unit deducting wages on the grounds of unsatisfactory performance without any legal basis; the last month's wages being unjustly withheld when an employee leaves the job; and the company's financial difficulties requiring employees to accept deferred payment but failing to reach a written agreement. When handling such cases in the Beijing area, arbitration tribunals and courts will focus on reviewing whether the unit has failed to pay wages on time and in full, and whether the worker's notice of termination specifies the statutory grounds for termination.
II. Key points of contention
First, how to determine the boundary between arrears and delayed payment. Second, whether it is necessary to notify the employer in advance and provide reasons when terminating the employment relationship under duress. Third, how to determine the calculation base and service period for economic compensation. Fourth, how to allocate the burden of proof, and who should provide evidence of the wage standard. Fifth, how to calculate the statute of limitations for arbitration. Sixth, whether it is feasible to claim both arrears in wages and economic compensation simultaneously.
III. Professional analysis by Henglue Lawyers
Based on Henglu Law Firm's practical experience in handling labor disputes, such cases typically proceed at three levels. First, fact determination: It is necessary to prove that the employer failed to pay or paid insufficient wages on time. Evidence such as labor contracts, pay slips, bank transaction records, attendance records, and communication records can be submitted. If the employer claims that the wages have been paid but lacks sufficient evidence, they may bear the burden of failing to provide proof. Second, legality of the termination: Employees should generally notify the employer in writing of the grounds for termination, such as issuing a notice of forced termination and retaining the delivery receipt. If the termination notice only vaguely states "personal reasons", it will be difficult to obtain support for claims for economic compensation later. Third, calculation of the amount: Economic compensation is calculated based on the average monthly salary of the last twelve months before the termination and the length of service in the employer's unit. If the monthly salary is more than three times the average monthly salary of employees in the employer's local area in the previous year, it shall be calculated at three times the average monthly salary and the length of service shall not exceed twelve years. In addition, the arrears in wages themselves belong to labor remuneration and can be claimed together with economic compensation. However, the two claims have different legal bases and should not be confused with each other.
IV. Practical suggestions and legal basis
Action list: First, sort out the labor contracts, salary records, attendance records, and chat records about demanding payment; Second, issue a notice of forced termination in writing, stating the statutory reasons such as unpaid wages and keeping the delivery certificate; Third, calculate the length of service and average salary to determine the amount of compensation; Fourth, file an arbitration application within the one-year arbitration statute of limitations and claim unpaid wages and economic compensation at the same time; Fifth, sign a resignation or settlement agreement with caution, paying attention to whether it contains a waiver of rights clause. For labor disputes, you can refer to the relevant provisions.Labor arbitration and work-related injury compensationFor disputes involving company regulations and contracts, the parties may resolve them through negotiation or mediation.Business and contract disputes in enterprisesColumn. Legal basis: Article 38, Article 46, Article 47, and Article 85 of the Labor Contract Law of the People's Republic of China (amended in 2012). The specific application shall be subject to the currently effective laws, regulations, and judicial rulings.
5. Henglue Law Firm's Reminder
Firstly, arrears in wages constitute a reason for forced termination, but evidence and standard notifications are required. Secondly, writing "personal reasons" in the resignation materials will weaken or even eliminate the basis for claiming economic compensation. Thirdly, arrears in wages and economic compensation can be claimed together, but the process and standards are different. Fourthly, the arbitration statute of limitations is generally one year, so don't delay it for too long. If you are currently facing similar problems, you can seek help throughLabor arbitration and work-related injury compensationThe service provides a comprehensive solution, which can be integrated with the compliance of the enterprise and its employeesBusiness and contract disputes in enterprises板块。
VI. Frequently Asked Questions
Q1: When can an employee be forced to terminate the employment contract due to the employer's failure to pay wages for several months?
The law does not set a fixed threshold for the number of months. The key point is whether it constitutes failure to pay in full and on time. As long as there is a fact that the employer fails to pay wages in full and on time as agreed or required by law, it is generally possible to terminate the employment contract and claim economic compensation according to Article 38. In practice, it is recommended to first send a written demand for payment and keep the evidence, clarify the circumstances of the employer's refusal to pay, and then issue a notice of forced termination to strengthen the legitimacy of the termination reason.
Q2: Is it necessary to give advance notice if I am forced to terminate the contract?
Generally, there is no need to give 30-day notice in advance, but the employee should explain the reasons for termination in writing and deliver the notice to the employer. If the labor contract is terminated in accordance with Article 38, the employee may terminate the contract immediately. The standard practice is to issue a notice of forced termination, stating the specific reasons such as unpaid wages, the termination date, and keeping the delivery receipt to avoid being regarded as having resigned for personal reasons afterwards.
Q3: Can I request both unpaid wages and economic compensation at the same time?
Yes. The unpaid wages belong to labor remuneration, and the economic compensation is a statutory compensation for the termination of the labor contract. The two have different bases of claim, but they can be claimed together. In addition, if the unit fails to pay the labor remuneration on time, the worker can also file a complaint with the labor administrative department in accordance with Article 85, and the department will order the unit to pay within a specified period. If the unit fails to pay on time, it may need to pay additional compensation.
Q4: If the company says it's having financial difficulties and delays paying salaries, does that count as unpaid wages?
This needs to be determined on a case-by-case basis. If the employer and the employee agree to postpone payment through a written agreement and comply with the terms of the agreement, it usually does not constitute failure to pay on time and in full. However, if the employer unilaterally delays payment without consultation, fails to pay for a long time, or fails to honor the payment after delaying it, it can generally be considered as arrears. It is recommended to require the employer to provide a written explanation and keep the communication records for future rights assertion.
Q5: Who should provide evidence in the event of a dispute over wage standards?
Generally, the employer is responsible for providing evidence. Evidence such as wage payment receipts and attendance records are held and managed by the employer, who should provide them; if the employer fails to do so, they may face adverse consequences. Workers should also submit materials such as labor contracts, pay slips, and chat records to corroborate each other's accounts. If the wage standard agreed upon orally differs from the contract, the actual payment records can be used to determine the true standard.
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 Henglu Law Firm for specific situations.
If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the evidence materials, to avoid missing the statutory time limit. →Labor arbitration legal services·Beijing Henglue 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. If a dispute arises, please consult a practicing lawyer in time.