[Direct answer]The two are consecutive procedures. Labor disputes are generally first subject to arbitration, and if the parties are dissatisfied with the arbitration decision, they can then file a lawsuit in court. Arbitration is handled by the Labor and Personnel Dispute Arbitration Committee, which does not charge case acceptance fees. Generally, the case will be concluded within 45 days from the date of acceptance, and the time limit can be extended by 15 days if the case is complex. Litigation is handled by the people's court, with the first-instance ordinary procedure taking six months and the simplified procedure taking three months. If the parties are dissatisfied with the judgment, they can appeal. Disputes such as confirming labor relations, terminating labor contracts, labor compensation, work-related injury medical expenses, and economic compensation or damages must first undergo arbitration. For claims involving amounts not exceeding 12 months of the local minimum wage standard, the arbitration decision is final and binding on the employer. Next, we will check the type and amount of the claim and verify the one-year statute of limitations for applying for arbitration.

I. Problem Background and Typical Scenarios

The moment many workers receive a notice of termination, their first instinct is to file a lawsuit with the court, only to be told by the court's filing window that they must first go to the arbitration committee. In Beijing, labor disputes follow the principle of "arbitration first, litigation later": the labor and personnel dispute arbitration committee is a mandatory step before litigation, and courts generally do not directly accept labor disputes without prior arbitration. This division of responsibilities determines two things: where to submit materials and the consequences of missing deadlines for seeking remedies. In practice, there are four common scenarios. First, when an employer terminates an employee verbally without issuing a written notice, the employee only has chat records, and must first confirm the employment relationship before claiming compensation for unlawful termination. Second, when a work-related injury victim and the employer disagree over the lump-sum disability employment subsidy and wages during the work injury leave period, the victim rushes to sue before completing the work injury identification and labor capacity assessment. Third, when both parties have signed a consensual termination agreement, but the employer later reneges on it due to failed approval, the employee is unsure whether to claim continued performance or compensation. Fourth, when overtime pay, unpaid annual leave, meal subsidies, and other scattered items are scattered across more than a year's worth of pay slips, the claimant fails to reconcile the amounts before submitting the request. The evidentiary requirements for the two procedures differ: in arbitration, the focus is on attendance records, wage payments, and the employer's original records; in litigation, the court reviews the disputes already determined in arbitration. Clarifying the procedural order often saves more time than rushing to draft a lawsuit.

II. Key points of contention

To distinguish between the two sets of procedures, it usually comes down to clarifying four aspects in individual cases. The first aspect is the scope of jurisdiction and acceptance. Disputes involving the confirmation of labor relations, disputes arising from the conclusion, performance, modification, termination, or rescission of labor contracts, disputes arising from dismissal, resignation, or termination of employment, disputes arising from working hours, rest and vacation, social insurance benefits, training, or labor protection, and disputes arising from labor compensation, work-related injury medical expenses, economic compensation, or damages all fall within the scope of arbitration. The second aspect is whether the request has exceeded the arbitration statute of limitations. The statute of limitations for applying for arbitration is one year, calculated from the date when the party knows or should have known that their rights have been infringed; if disputes arise during the continuation of the labor relationship due to unpaid labor compensation, the one-year limitation does not apply, but the party must file the claim within one year from the date of termination of the labor relationship. The third aspect is the organization and pace of the trial. Arbitration is generally conducted by a three-arbitrator panel, or a single arbitrator for simple cases, with pre-trial mediation; in court, the first-instance trial is conducted by a collegial panel in ordinary procedures, and by a single judge in summary procedures, with the judgment stating the right to appeal. The fourth aspect is the effectiveness of the award. After a non-final award is made, either party may file a lawsuit with the court within 15 days from the date of receipt of the award, and the award will take effect only after the expiration of the time limit; a final award takes effect against the employer from the date of issuance, but the employee may still file a lawsuit within 15 days, and the employer may only apply to the intermediate people's court for revocation within 30 days from the date of receipt of the award. By checking these four aspects in order, it is generally possible to determine the next steps for the case at hand.

III. Professional analysis by Hengluo Lawyers

When handling such disputes, Beijing Hengluo Law Firm typically first breaks down the requests into three categories: actions for confirmation, actions for performance, and actions for formation. Then, it checks the evidence and procedural milestones item by item before deciding how to draft the arbitration request. The reason for this is that once the arbitration application is submitted, subsequent litigation usually revolves around the same facts and requests. If any items are missed during the arbitration stage or the timelines are misstated, the cost of rectifying these issues at the court stage will be very high.

The following case of illegal termination of employment that our firm represented perfectly illustrates how procedural choices and evidence organization jointly determine the outcome. Clients often search for information on how to protect their rights if they are illegally terminated from employment contracts, how to calculate overtime pay and unpaid annual leave compensation, whether it is legal for companies to renege on negotiated terminations, and labor lawyers in Beijing. The dispute in this case precisely falls into these areas. Chen * joined XX Innovation Company on February 28, 2022, as a front-end development engineer. The parties signed a three-year labor contract stipulating a probationary period ending on May 27, 2022, and standard working hours. The company issued salaries from the 21st of the previous month to the 20th of the current month, and payments were due until January 20, 2023. Chen's monthly salary consisted of a fixed wage of 30,000 yuan and a meal subsidy of 330 yuan. From January 21 to March 30, 2023, Chen provided normal labor services, but the company failed to pay his wages during this period. Additionally, the company did not pay overtime wages for weekend work during his employment and failed to arrange or compensate for unused annual leave. On January 31, 2023, the parties negotiated a consensual termination, but the company reneged on the agreement on February 10, 2023, citing Chen's unauthorized transfer of departmental operations to his personal company for profit and malicious group chat creation. Chen entrusted Henglu Law Firm to file a labor arbitration case. The company claimed that Chen engaged in part-time work, committed fraud, and seriously violated company rules, thereby justifying the termination and refusing to pay compensation. Chen, however, argued that the termination lacked factual basis and demanded payment of unpaid wages, overtime compensation, and illegal termination compensation. The arbitration tribunal ruled that XX Innovation Company must pay Chen a total of 118,879.36 yuan in wages, overtime pay, and illegal termination compensation. The tribunal's reasoning was threefold: First, merely establishing Chen's company did not suffice to prove part-time employment or a labor relationship with other entities, and the company failed to provide evidence of fraudulent activities. Second, the technical service contract submitted by the company was invalid, and Chen disputed its content, rendering the evidence inadmissible. Third, screenshots of work group chats were insufficient to prove malicious group chat activity amounted to a serious violation of company rules, thus invalidating the company's claims of severe misconduct. Based on these findings, the tribunal upheld claims for illegal termination compensation and all wage payments. This case was represented by Tian Jiaoyan, an attorney at Beijing Henglu Law Firm (Practice Certificate No. 11101202111381309, issued by the judicial administrative authority). Whether a labor contract termination is legal primarily places the burden of proof on the employer. During arbitration, the tribunal clarified the breakdown of the 118,879.36 yuan in wage payments item by item. In subsequent litigation, the court will review the same set of original evidence.

IV. Practical suggestions and legal basis

At the legal level, the "Law of the People's Republic of China on Mediation and Arbitration of Labor Disputes" (effective May 1, 2008) establishes the basic framework of "arbitration before litigation", "arbitration free of charge", a 45-day litigation period, and a one-year statute of limitations; the "Law of the People's Republic of China on Labor Contracts" (amended on December 28, 2012, effective July 1, 2013) stipulates the basis for claims such as compensation for illegal termination, double wages for unwritten labor contracts, and economic compensation; the "Regulations on Work-Related Injury Insurance" (amended on December 20, 2010, effective January 1, 2011) lists work-related injury identification and labor capacity assessment as prerequisites for disputes over benefits; and the "Civil Procedure Law of the People's Republic of China" (amended on December 24, 2021, effective January 1, 2024) applies to first- and second-instance procedures after dissatisfaction with arbitration awards. In practice, it is recommended to follow four steps: 1. Write a one-page timeline detailing the employee's start date, position, salary structure, and termination date, and match each item with the labor contract, bank records, attendance records, and termination notices. 2. Check the statute of limitations for each claim: claims for unpaid labor compensation must be filed within one year from the date of termination, and other claims within one year from the date of discovering the infringement. 3. On the day of receiving the arbitration award, mark the 15-day appeal period on the calendar and first determine whether the award is final to avoid misusing appeal or revocation procedures. 4. For work-related injury cases, first complete the work-related injury identification and labor capacity assessment, then apply for arbitration regarding the difference in benefits. When dealing with extensive materials, organize them into four folders: - Evidence of the employer-employee relationship - Evidence of the claim amount - Evidence of the employer's fault - Arbitration and litigation materials (share the same draft documents).

5. Hengluo Law Firm's Reminder

When it comes to the connection between arbitration and litigation, the most difficult to remedy is the time limit. Upon receiving documents such as the notice of termination, the arbitration award, and the mediation agreement, it is recommended to take photos and record the delivery date on the spot. The 15-day filing period, the 30-day application for revocation, and the one-year arbitration statute of limitations all start from the date of delivery or when the right holder becomes aware of the infringement. It's easy to make mistakes if these deadlines are recorded later. Secondly, when making an arbitration request, don't just write a general sentence about paying various compensations. The amounts and calculation methods for wages, overtime wages, unpaid annual leave wages, and compensation should be listed separately. Omitting these items in the arbitration phase often leads to claims being raised in separate litigation. Thirdly, when the employer verbally promises to pay back wages or make up for social insurance contributions, it's best to put it in writing. When exporting chat records, retain the original carrier. Finally, if the employer still fails to pay after the arbitration award takes effect, you can directly apply to the people's court for enforcement without having to file a new lawsuit. In Beijing, the court is particularly strict about checking the original evidence, confirming the delivery address, and reviewing time limits. It's more reliable to organize the materials in chronological order in advance than to search for them just before the trial. If you need professional assistance with specific procedural matters, you can refer to the relevant materials for more information.Labor arbitration and work-related injury compensationAn explanation of the service page.

VI. Frequently Asked Questions

Q1: If the company uses screenshots from the work group to accuse employees of engaging in illegal activities for personal gain, will the arbitration tribunal accept this evidence?

Generally, screenshots from work groups are not accepted as evidence alone. Screenshots from work groups are electronic data, which can only prove the existence of group chats and the content of the discussions, but cannot directly prove that the worker transferred the department's business to his/her personal company for profit, nor can it prove that this behavior meets the conditions for termination stipulated in the rules and regulations. According to the evidentiary rules established by the Labor Dispute Mediation and Arbitration Law of the People's Republic of China (effective May 1, 2008), in disputes arising from decisions made by employers such as dismissal, expulsion, resignation, or termination of labor contracts, the employer shall bear the burden of proof for the facts on which the decision is based. In the Chen case, the technical service contract submitted by the company was not effective and Chen raised objections, so the arbitration committee did not accept this evidence. Relying solely on the fact that the company was established is not sufficient to determine whether it was a part-time or labor relationship. Ultimately, the arbitration tribunal ruled that the company should pay Chen a total of 118,879.36 yuan in wages, overtime pay, and compensation for unlawful termination of the labor contract. When receiving such accusations, it is recommended to first export the original records of the group chats in their entirety, then check whether the employee handbook lists the creation of groups without authorization as a circumstance for termination, and whether the rules have undergone democratic procedures and been publicly disclosed to workers.

Q2: When claiming overtime work on rest days and five days of unpaid annual leave, what attendance records should be submitted?

At a minimum, you should prepare four types of evidence. First, attendance sheets stamped with the unit's seal or confirmed by the responsible person, and clock-in/clock-out records, which are used to determine the actual attendance dates on rest days; Second, shift scheduling notifications, overtime approval forms, and task assignment and delivery records in work groups, which prove that overtime work is arranged by the unit rather than voluntary staying late by the employee; Third, bank account statements and pay slips, to verify whether overtime pay on rest days has been paid at a rate of 200% of the normal wage; Fourth, annual leave records or screenshots of the leave system, which prove that the employee is entitled to five days of annual leave per year and that the unit has not arranged or converted this leave into compensation. In Chen's case, the fixed monthly salary of 30,000 yuan and the meal subsidy of 330 yuan, together with the bank account statements showing unpaid wages for normal work from January 21 to March 30, 2023, constitute the basis for calculating all amounts. According to the "Mediation and Arbitration Law of the People's Republic of China on Labor Disputes" (effective May 1, 2008), evidence related to the disputed matters is in the employer's possession and management, and the employer should provide it. If the employer fails to do so, the employer shall bear adverse consequences. Therefore, it suffices for the employee to provide initial clues first.

Q3: In the case of claiming 118,879.36 yuan, do I need to pay the acceptance fee during the labor arbitration stage?

No. According to the "Mediation and Arbitration Law of Labor Disputes of the People's Republic of China" (effective May 1, 2008), labor dispute arbitration does not charge fees to the parties. The arbitration committee's funding is guaranteed by the government, so whether the claim amount is 118,793.36 yuan or higher, there is no case acceptance fee in the application stage. The real costs lie in two areas: first, if you are not satisfied with the non-final arbitration award and sue the court, according to the "Method for Payment of Litigation Fees" (effective April 1, 2007), each labor dispute case pays a case acceptance fee of 10 yuan; second, the attorney's fee, which is usually paid on a per-case basis, a percentage of the dispute amount, or on an hourly basis, subject to the terms of the agency contract. There is no unified government pricing. It should be noted that disputes involving claims for labor remuneration, work-related medical expenses, economic compensation, or damages, where the amount does not exceed twelve months of the local minimum wage standard, are final arbitration awards. The employer cannot sue but can only apply for revocation. The probability and cost of such cases going to court need to be evaluated separately.

Q4: If I disagree with the arbitration award, when does the 15-day period for filing a lawsuit with the court start from?

Starting from the day after receiving the award, the last day of the time limit that falls on a holiday is extended to the first day after the holiday. According to the "Mediation and Arbitration Law of Labor Disputes of the People's Republic of China" (effective May 1, 2008), if the parties are not satisfied with the non-final award, they may file a lawsuit with the people's court within 15 days from the date of receiving the arbitration award; if they fail to file a lawsuit within the time limit, the award shall take legal effect. Here, the 15-day period is a calendar day rather than a working day, and the starting point is based on the actual date of service. The starting points for service by announcement, mail receipt, and on-the-spot collection are different. When signing the receipt, it is necessary to clearly write the date on the service certificate. If the award is a final award, the worker can still file a lawsuit within 15 days, but the employer can only apply to the intermediate people's court for revocation within 30 days from the date of receiving the award. Applying to the wrong court will result in the dismissal of the application. In Chen's case, if the company is not satisfied with the award of 118,879.36 yuan, it is also subject to this time limit. Once neither party files a lawsuit, the award can serve as the basis for applying for enforcement.

Q5: On the day you receive the termination notice, which section of the bank salary statement should you export first?

First, export the bank statements covering the entire period of the dispute, and highlight two sections: one is all the salary payment records from the date of employment to the month of termination, used to confirm the salary standard and payment cycle; the other is the months when the employer stopped or underpaid salaries, used to compare the amount of unpaid wages. Chen's company issued salaries from the 21st of the previous month to the 20th of the current month. The salaries were paid until January 20, 2023, but from January 21 to March 30, 2023, she still worked normally but received no payment. If the bank statements are not aligned with the payment records month by month, it's easy to miscalculate the months of unpaid wages. In addition to the bank statements, on the same day, you should also take photos and keep the original notice of termination, the prompt of being removed from the work group, and screenshots of the disabled access control and attendance permissions, and continue to keep the records of work results in the office computer. According to the Labor Contract Law of the People's Republic of China (amended on December 28, 2012, and implemented on July 1, 2013), the employer shall issue relevant certificates and handle the transfer of files and social insurance relations upon termination or dissolution. These materials, together with the bank statements, form the basis for subsequent claims for wages, overtime wages, and compensation for illegal termination.

Disclaimer: This article is compiled based on current laws and regulations and publicly available adjudication rules, and is provided 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.