[Direct answer]In the Beijing area, the acquisition of a company itself does not result in the resetting of employees' seniority. According to Articles 33 and 34 of the Labor Contract Law of the People's Republic of China, changes in the name, legal representative, principal responsible person, or investors of the employing unit do not affect the performance of the labor contract; in the event of a merger or division of the employing unit, the original labor contract remains effective and shall continue to be performed by the unit that inherits the rights and obligations. The seniority should be calculated continuously. Only when the employee terminates the contract with the original unit, signs a new contract with the acquiring party, and the original unit pays economic compensation, may the seniority be "buyout" and recalculated. It is recommended that employees pay attention to the contracting parties and compensation arrangements. For more details, please refer to the following link:Labor arbitration and work-related injury compensation services.

1. Problem background and typical scenarios

Corporate acquisitions and mergers are frequent events in the workplace, and what employees worry most about is "their working years being reset to zero, annual leave being cleared, and compensation being calculated from scratch" after a change of ownership. Typical scenarios include: the acquiring company requiring all employees to sign new contracts and restarting the calculation of their working years; denying the continuity of their working years at the original company on the grounds that "the new company represents a fresh start", which affects their fixed-term contracts and annual leave entitlements; and negotiating severance payments during the acquisition, only for employees to later discover that their continuous working years have been interrupted. In practice, most acquisitions involve a change of ownership rather than the termination of employment relationships, and working years are legally continuous. For cases involving equity transactions, relevant provisions can be consulted for further clarification.Business and contract dispute services for enterprisesEvaluate the transaction structure.

II. Key points of contention

The focus of the dispute lies in three aspects. Firstly, whether it constitutes a "merger and separation": if the main entity absorbs or newly establishes a merger, the original contract shall continue to be performed by the successor unit, and the employee's seniority will be continuous; if there is only a change in equity or legal person, the contract will not be affected. Secondly, the nature of the re-signing: if the employee is passively re-signing and has not received severance pay, it is generally not considered a break in seniority; if the original unit terminates the contract first and the acquirer then hires the employee and pays compensation, the original seniority may not be continued. Thirdly, the burden of proof: the employee needs to prove the fact of continuous work and the change in the contracting entity. When handling similar cases in Beijing, there is a relatively consistent judgment on the continuity of seniority when the change in the contracting entity is not caused by the employee's reasons, emphasizing the protection of workers' cumulative rights. For cases involving merger and acquisition compliance, reference can be made to the relevant provisions.Intellectual property protection and corporate legal services.

III. Professional analysis by Hengluo Lawyers

Based on the practical experience of our firm's corporate clients and workers, the crux of disputes over working years often lies in whether "re signing a contract cuts off continuous working years". Hengluo Lawyers usually suggest: first, clarify whether the acquisition involves equity changes, mergers and divisions, or asset acquisitions, and distinguish between the continuation of labor relations and the establishment of new ones; then check the employee handbook, annual leave, and the criteria for calculating working years relied on by fixed-term contracts. In practice, many employees are required to "confirm that their working years start from zero" when re signing contracts, which subsequently affects the basis for severance compensation and the number of annual leave days. If they did not receive compensation from their former employers at the time, they can often claim continuous calculation. For cases involving enterprise restructuring and employment, it may be necessary to combine the above factors with relevant legal provisions and precedents to provide a comprehensive legal analysis and solutions.Special services and other case servicesCoordination.

IV. Practical suggestions and legal basis

The core basis is Article 33 of the Labor Contract Law of the People's Republic of China (amended on December 28, 2012), which stipulates that changes in the employing unit do not affect the performance of the contract; Article 34, which stipulates that the original contract remains valid after a merger or division; and Article 47, which stipulates that economic compensation shall be calculated according to the length of service; as well as the provisions on the calculation of work experience in the Implementing Regulations of the Labor Contract Law. Practical suggestions: Before the acquisition and re-signing, require a written explanation on whether the work experience is continuous and whether the annual leave and qualifications for non-fixed-term contracts will be retained; the original unit must pay economic compensation upon termination; retain previous contracts, social insurance and salary records to prove continuous employment; and be cautious in signing clauses that ambiguously state "work experience starts from zero". For cases involving cross-employer employment, relevant provisions may be referenced.Creditor-debtor relations and enforcement case servicesOutput: Labor compliance support beyond the above-mentioned aspects.

5. Hengluo Law Firm's Advice

When facing a buyout and a new contract signing, employees don't need to panic and shouldn't sign hastily. The key is to formalize the commitment to "continuous working years" in writing, or to obtain corresponding compensation when leaving the original company. It's crucial to avoid confirming the "resetting of seniority" on blank or unclear clauses, as it will be difficult to provide evidence later. It is recommended to keep all contracts, pay slips, social insurance records, and communication records. If there are conflicting interpretations, consult a practicing lawyer in time to avoid losing years of rights and benefits due to a single signature. For professional support, you can seek assistance from relevant institutions or professionals.Special services and other case-related services.

VI. Frequently Asked Questions

Q1: If the company is acquired, will my length of service be reset to zero, or can it be counted continuously?

Generally, it can be calculated continuously. According to Articles 33 and 34 of the Labor Contract Law, if the employing unit merges, divides, or only changes its investors or legal persons, the original labor contract remains valid and shall be performed by the successor unit, with the service period continuing. Only in the case where the original unit first terminates the contract with you, the acquiring party re-employes you, and the original unit has paid economic compensation, may the original service period be "bought out". Whether it can be calculated continuously depends on the transaction structure of the acquisition and the specific arrangements you have signed with the acquiring party. The lawyer will help you evaluate the situation rather than guarantee the outcome.

Q2: To prove that my work experience is continuous, what evidence do I need to prepare?

The core evidence includes: previous labor contracts and the texts of their renewal and re-signing, which prove the change of the contracting parties; payroll records, personal income tax and social insurance payment records, which prove continuous employment and uninterrupted payment; work permits, attendance records, annual leave records, etc., which prove actual continuous work; and acquisition announcements, equity or merger documents, etc., which prove the change of the nature of the subject. The materials should be organized around the "employer's change not due to the employee's own reasons", and the more complete the materials are, the more they can support the determination of continuous working years.

Q3: How much does it generally cost to hire a lawyer to resolve disputes over working years in an acquisition?

The attorney's fees are negotiated between the law firm and the client. Common charging methods include per-case or a percentage of the case value, with the specific fees determined by the engagement contract. There is no nationwide standard pricing. If the case only involves sending a letter regarding the determination of work experience or arbitration, the fees are relatively manageable; however, if it involves disputes over the base amount of severance compensation, the fees may be accumulated proportionally. It is recommended to request a detailed fee breakdown, clarify the stages of representation and whether it includes litigation fees, preservation fees, and other third-party costs. Then, weigh the costs against the potential benefits to determine the best course of action.

Q4: How long does it typically take from raising a dispute over working years to resolving it?

If the issue can be resolved through negotiation or corporate compliance communication, it can be completed in a few weeks. If it goes to labor arbitration, the arbitration process generally ends within 45 days from the date of acceptance, and difficult cases can be extended to 60 days. For appeals against the arbitration decision, the first-instance ordinary procedure is completed within six months, and the summary procedure is completed within three months. For cases involving complex determination of employment periods, the timeframe will be extended accordingly. Overall, from evidence collection to determination, it often takes several months. It is recommended to fix all previous contracts and social insurance records as soon as possible to shorten the process.

Q5: The company is being acquired, and they want me to sign a new contract. What should I do first?

It is recommended to proceed in four steps: First, clarify the type of acquisition (equity change, merger and division, or asset acquisition) and sign a contract with the new entity; Second, organize previous contracts and salary and social insurance records to confirm continuous working years and annual leave, as well as qualifications for non-fixed-term contracts; Third, require a written clarification on whether the working years are continuous and whether compensation will be paid to the original unit, and avoid signing vague "start-from-scratch" clauses; Fourth, if no agreement can be reached, promptly seek arbitration or consult a lawyer, and if necessary, claim continuous calculation and corresponding compensation.

The above questions and answers are mainly based on the judicial practice in the Beijing area. There may be differences in the adjudication guidelines 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 relevant evidence, to avoid missing the statutory time limit. →Labor arbitration legal services·Beijing Henglu 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 you encounter disputes, please consult a practicing lawyer in time.