[Direct answer]In principle, arbitration must be conducted first. The law only provides a few exceptions where parties can bypass arbitration and go directly to court. The parties should first apply for arbitration to the labor and personnel dispute arbitration committee. Only in the following circumstances can the court accept the lawsuit: the parties disagree with the non-final arbitration award; the arbitration committee refuses to accept the application; the arbitration committee fails to make a decision on acceptance or an arbitration award within the time limit; and the parties hold wage payment receipts and the dispute does not involve other labor relations. The arbitration application is under the jurisdiction of the arbitration committee at the place of performance of the labor contract or the employer's location. The application period is one year, and the case is generally concluded within 45 days after acceptance. If the application is held up at the acceptance stage, the parties can supplement the materials; if it is held up at the arbitration stage, the parties can file a lawsuit; and if the arbitration award has taken effect, the parties can directly apply for enforcement.

I. Problem Background and Typical Scenarios

When eager to file a lawsuit but being turned away by the court window, this is the first hurdle that labor dispute parties encounter. Beijing area courts generally rule that labor disputes filed without arbitration are inadmissible; the relationship between arbitration committees and courts is not parallel and optional, but rather sequential. There are two practical reasons for this design: first, labor disputes are highly specialized, and having arbitration tribunals that are familiar with employment management conduct preliminary screening can reduce litigation pressure; second, arbitration is free of charge and relatively quick, making it suitable for sorting out claims with clear amounts and concentrated evidence, such as wages, overtime pay, annual leave, and compensation. There are four common misunderstandings. First, treating company arrears in wages as ordinary debts and directly going to court with transfer records only to be told to apply for arbitration first. Second, when the employer verbally notifies employees not to return to work, but the employee lacks a written termination notice or attendance records, they sue directly, even having difficulty determining the date of the dispute. Third, when both parties have signed an agreement to terminate the employment relationship, the employer later reneges on the approval and the employee mistakenly believes they can skip arbitration and proceed with enforcement. Fourth, injured workers rush to sue for compensation differences before completing the work-related injury identification and labor capacity assessment. To determine whether arbitration should be pursued first, the focus should not be on how urgent the situation is, but rather whether the claim falls within the scope of labor disputes and whether the statutory litigation conditions have been met.

II. Key points of contention

In individual cases where the "first arbitration, then litigation" approach is applied, disputes typically focus on five aspects. First, the nature of the dispute: disputes concerning the confirmation of labor relations, the modification, performance, termination, or rescission of labor contracts, dismissal, resignation, working hours, rest and vacation, social insurance benefits, training, labor protection, labor compensation, work-related injury medical expenses, economic compensation, or damages, etc. fall under labor disputes; while relationships between employees and employers involving contracting, cooperation, labor outsourcing, retirement re-employment, or internships at schools are usually handled as ordinary civil relationships and do not require arbitration. Second, the conditions for acceptance of the application: the application must specify the respondent, contain clear arbitration requests and factual grounds, and fall within the scope of jurisdiction. If the materials are incomplete, they should be supplemented in one go rather than being repeatedly returned. Third, remedies for late or non-acceptance of the application: If the arbitration committee fails to make a decision on acceptance within five days from the date of receipt of the application, or fails to make a ruling after acceptance, the parties may file a lawsuit with the court regarding the labor dispute; if the arbitration committee issues a notice of non-acceptance or rejects the application, the applicant may also file a lawsuit within the statutory time limit. Fourth, the connection after filing a lawsuit with the court: The requests submitted in the lawsuit should generally be consistent with the arbitration requests. New independent requests are often required to be filed for arbitration separately. Fifth, the double precondition for work-related injury cases: When the work-related injury identification and labor capacity appraisal have not been completed, directly claiming one-time disability employment subsidies and other benefits is usually premature. By checking each of these five aspects one by one, materials can be avoided from being repeatedly sent back and forth between the arbitration committee and the court.

III. Professional analysis by Hengluo Law Firm

When Beijing Henglu Law Firm handles such consultations, it usually starts with three questions: Do you have written termination notices or proof of unpaid wages? Is the dispute a labor relationship or a service relationship? Has the arbitration committee issued an acceptance or rejection notice? These three questions correspond to three different approaches. For those with complete materials, we directly draft the arbitration application; for those uncertain about the nature of the relationship, we first supplement the evidence of the subject; and for those who have already received a rejection notice, we prepare the lawsuit and the service proof. The reason why we place great emphasis on the order is that once the arbitration request is listed, most subsequent litigations will revolve around the same facts. Omissions in the request or incorrect names of the respondents in the preliminary stage will slow down the entire process.

The following labor dispute case, which we represented, illustrates why arbitration is not a mere formality. Workers often ask questions like "How can I claim compensation for a sudden dismissal?" and "Can I recover unpaid wages after being dismissed?" - these are precisely the starting points of the dispute. The plaintiff, Liu * (hereinafter referred to as "the applicant"), joined the Beijing branch of Shanghai * Technology Group Co., Ltd. (hereinafter referred to as "the defendant") in May 2014 as a mid-level designer, signing a written labor contract with the defendant. Their employment relationship lasted until December 2022, with a total work period of 8 years and 7 months, an average monthly salary of 12,231.87 yuan, and continuous payment of remuneration and social insurance contributions by the defendant during this period. However, starting from September 2022, the defendant stopped paying the applicant's salary. On December 19, 2022, the applicant was unexpectedly informed by the employer about office area adjustments and temporary home-based work. Concerned about further salary cuts due to months of unpaid wages, the applicant requested on-site work negotiations. While these discussions were ongoing, the applicant unexpectedly received a "Notice of Termination of Labor Contract" from the defendant on December 28, 2022, indicating an unlawful termination of the employment relationship. After accepting the case, our attorney communicated with Liu * multiple times, analyzed and evaluated evidence, and identified multiple pieces of evidence proving the defendant's unlawful termination. This helped the applicant initiate arbitration proceedings. Ultimately, the Arbitration Commission adopted our key arguments and claims, ruling that the defendant must pay the applicant 218,733.05 yuan in compensation for unlawful termination, repay 13,998.85 yuan in unpaid wages, and 1,687.15 yuan in unpaid annual leave wages, while confirming the existence of a labor relationship between the parties. The applicant was highly satisfied with the outcome far exceeding expectations. This case was handled by Attorney Yuan Hang of Beijing Henglu Law Firm (practice license number: 11101202110286151, issued by the judicial administrative authority). Among the four claims, confirming the existence of a labor relationship is the prerequisite for the remaining three claims (unpaid wages, unpaid annual leave wages, and compensation for unlawful termination), all of which constitute typical labor disputes. Therefore, the entire case must first be reviewed by the Arbitration Commission. Only if the employer disagrees with the non-final arbitral award will the case proceed to first-instance court review, confirming that the pre-arbitration procedure is an indispensable step. From a timeline perspective, the four key points - joining the company in May 2014, suspension of salary payments in September 2022, notification of home-based work on December 19, 2022, and receipt of the termination notice on December 28, 2022 - form a verifiable chain linking the duration of the employment relationship, the onset of unpaid wages, negotiation attempts for adjustments, and the final termination. Based on this timeline, the Arbitration Commission calculated the applicant's 8-year and 7-month work period and average monthly salary of 12,231.87 yuan, which served as the basis for the 218,733.05 yuan in compensation.

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" (implemented on May 1, 2008) stipulates the principles of "arbitration before litigation", a one-year statute of limitations, a five-day acceptance and review period, and a 45-day trial period; the "Law of the People's Republic of China on Labor Contracts" (amended on December 28, 2012 and implemented on July 1, 2013) serves as the substantive basis for claims such as compensation for unlawful termination, economic compensation, and unpaid annual leave wages; the "Regulations on Work-Related Injury Insurance" (amended on December 20, 2010 and implemented on January 1, 2011) prioritizes work-related injury identification and labor capacity assessment before addressing disputes over benefits; and the "Civil Procedure Law of the People's Republic of China" (amended on December 24, 2021 and implemented on January 1, 2024) applies to first-instance and second-instance litigation following unsuccessful arbitration or litigation against non-final arbitral awards. In terms of practical procedures, the following four steps are recommended: 1. First, submit an application to the arbitration committee at the labor contract performance location or the employer's headquarters rather than filing directly with the court; 2. The application should include the defendant's full name, the amount and calculation method of each claim, a chronological timeline of the facts, and attach relevant documents such as the labor contract, bank statements, social insurance records, and termination notices; 3. If you receive a notice of non-acceptance or an arbitration committee's failure to adjudicate within the statutory period, retain the service proof and file a lawsuit within the legal timeframe; 4. If the lawsuit involves only wage arrears and does not involve other labor disputes, you may directly sue as an ordinary civil case, but do not use this opportunity to include unlawful termination compensation claims in the ordinary civil case. All materials should be archived in four folders according to subject, relationship, amount, and service proof, which can be shared between arbitration and litigation procedures.

5. Henglu Law Firm's Reminder

When encountering the question of whether it's necessary to arbitrate first, the most common pitfall is waiting. Some people want to negotiate with their employer first and then apply for arbitration after several months of negotiation, only to find that the one-year application time limit is almost exhausted; others think arbitration is useless, repeatedly filing lawsuits in court only to have their cases dismissed, during which crucial evidence has been lost. It is recommended to separate oral communication from written applications: continue negotiations as usual, but don't delay in submitting written arbitration applications, especially for facts such as termination notices, unpaid wages, and interrupted social insurance payments. The earlier these facts are documented, the less likely they will be denied. Secondly, the name of the respondent should be filled in according to the full name of the labor contract or social insurance payment unit. Using abbreviations or brand names often requires correction. Thirdly, don't just write "pay compensation" in the arbitration request. Separately list wages, overtime wages, unpaid annual leave wages, and compensation. In the Liu case, the four requests corresponded to 13,998.85 yuan, 1,687.15 yuan, 218,733.05 yuan, and confirmation of the labor relationship. Writing them out clearly makes it easier to calculate. Finally, disputes over work-related injury benefits must first complete the work-related injury identification and labor capacity assessment. If you need professional teams to handle the procedural aspects, you can refer to the relevant materials for guidance.Arbitration of labor disputes and compensation for work-related injuriesService Description.

VI. Frequently Asked Questions

Q1: If I go directly to the court to sue for unpaid wages without going through arbitration, will my case be accepted by the court?

Generally, such cases are not accepted unless they fall into several statutory exceptions. According to the "Mediation and Arbitration Law of Labor Disputes in the People's Republic of China" (implemented on May 1, 2008), the pattern of "arbitration first, then litigation" is established. Labor disputes must first be submitted to the labor and personnel dispute arbitration committee for arbitration. If the applicant is dissatisfied with the arbitration decision or the arbitration committee refuses to accept the case or fails to make a decision within the time limit, they can then file a lawsuit with the people's court. When the court's registration window receives a lawsuit without arbitration, it usually rules that the case is inadmissible or guides the applicant to apply for arbitration first. There are clear boundaries for situations often mistakenly regarded as directly suing: if the worker uses the employer's wage promissory note as evidence and the litigation request does not involve other disputes over the labor relationship, it is accepted as an ordinary civil dispute; if the arbitration committee issues a notice of refusal to accept the case or fails to make a decision within the time limit, the applicant can file a lawsuit on the disputed matter; if the employer fails to perform the arbitration award, the applicant can directly apply for enforcement rather than filing a new lawsuit. In Liu's case, the four requests of confirming the labor relationship, compensation for illegal dismissal of 218,733.05 yuan, unpaid wages of 13,998.85 yuan, and unpaid annual leave wages of 1,687.15 yuan are all typical labor disputes and must first go through arbitration.

Q2: To confirm the work experience of 8 years and 7 months, which years' social insurance payment records need to be adjusted?

Obtain the payment records covering the entire period from May 2014 to December 2022, without the need to print only the first and last two months. 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 shall be provided by the employer if it is within the employer's control and management. However, if the worker first presents initial proof of continuous payment, it can prevent the employer from raising defenses such as temporary employment or labor cooperation. In practice, it is recommended to prepare four sets of materials: first, social insurance rights records showing the name of the payment unit month by month; second, labor contracts and renewal pages corresponding to the employment start date; third, bank salary statements verifying the average monthly salary of 12,231.87 yuan; and fourth, identity-related materials such as work badges, access control systems, and work emails. In the Liu case, the respondent continuously paid remuneration and paid social insurance during the period from May 2014 to December 2022. This set of continuous records was the key for the arbitration committee to confirm the existence of a labor relationship between the parties and calculate the compensation for illegal termination at 218,733.05 yuan based on an employment period of 8 years and 7 months. If the employer stopped or interrupted payment, highlighting the months of interruption could instead corroborate the employment status during the period of unpaid wages.

Q3: For a claim of 218,733.05 yuan in compensation, how is the fee calculated for the two stages of first arbitration and then litigation?

The arbitration stage does not charge fees, but for the litigation stage, a fee of 10 yuan per case is required. What really needs to be budgeted is the attorney's agency fee. According to the "Mediation and Arbitration Law of Labor Disputes of the People's Republic of China" (implemented on May 1, 2008), labor dispute arbitration does not charge fees to the parties. For those who file a lawsuit against the non-final arbitral award, they shall pay a case acceptance fee of 10 yuan per case according to the "Method for Payment of Litigation Costs" (implemented on April 1, 2007). For property preservation, fees shall be calculated according to the relevant provisions. There is no unified government pricing for attorney's fees. Three common charging methods include: charging per case, charging according to the proportion of the subject matter, and charging by working hours. For a case with a subject matter of 218733.05 yuan, if it goes through the arbitration, first-instance, and second-instance stages, the fees are usually agreed upon separately for each stage. In Liu's case, the arbitration committee ultimately adopted the main opinions and claims, and the case did not proceed to litigation. The actual expenditure was concentrated on the attorney's fee stage. When signing the power of attorney, it is necessary to clarify the scope of the arbitration stage, the first-instance stage, the second-instance stage, and the enforcement stage to avoid disputes over price increases in the future.

Q4: I received the termination notice on December 28, 2022. When does the statute of limitations for arbitration begin to run?

The statute of limitations for disputes related to the termination of labor contracts typically begins on the date when the rights holder becomes aware or should have become aware of the infringement of their rights. In this case, it would be calculated from December 28, 2022, the date when Liu received the notice of termination of the labor contract. According to the Labor Dispute Mediation and Arbitration Law of the People's Republic of China (effective May 1, 2008), the statute of limitations for labor disputes is one year. The statute of limitations is interrupted when the rights holder asserts their rights against the other party, requests relief from relevant authorities, or when the other party agrees to perform their obligations. The statute of limitations can also be suspended due to force majeure or other legitimate reasons. It's important to note that disputes arising from unpaid wages during the continuation of the labor relationship are not subject to the one-year limitation, but if the labor relationship terminates, the claim must be filed within one year from the termination date. In Liu's case, his salary was suspended starting from September 2022, he was notified to work from home on December 19, 2022, and received the notice of termination of the labor contract on December 28, 2022. The statute of limitations for these claims does not begin on the same date. It's safer to calculate the statute of limitations from the earliest date when Liu became aware of the infringement of his rights, rather than waiting until it's almost a year before submitting the claim.

Q5: If the employer suspends my salary and allows me to work from home, which written notice should I keep first?

First, keep the original notice or screenshot of the notice on the adjustment of the office area and temporary home office on December 19, 2022, and then supplement it with a written record of your application for on-site office work. 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 and the employee may, by mutual consent, modify the content agreed upon in the labor contract. However, unilaterally changing the on-site office work to home office and suspending the payment of wages at the same time may easily constitute a failure to provide working conditions as agreed and a failure to pay wages in full and on time. In Liu's case, the respondent suspended the payment of wages since September 2022, and arranged home office on the grounds of adjusting the office area. The applicant was worried about another pay cut and applied for on-site office work. Just as they were in the process of negotiation, they received a notice of termination on December 28, 2022; after accepting the case, the lawyer communicated with Liu several times, analyzed and judged the evidence, and found multiple pieces of evidence of illegal termination from these notifications and applications, which helped initiate the arbitration process. When keeping the documents, arrange the notifications, applications, and communication records by date, and export the original carriers. Don't just keep the text after forwarding.

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 a dispute arises, please consult a practicing lawyer in time.