[Direct answer]When a company receives a labor arbitration application, it should submit a defense statement and evidence within the defense period, and focus on reviewing the basis of the applicant's claims, the three characteristics of evidence, and whether the facts of termination or unpaid wages have a legal basis. According to the "Labor Dispute Mediation and Arbitration Law", the party who makes the claim bears the burden of proof. It is not advisable to ignore the application once received, otherwise there may be a default judgment. It is recommended that enterprises refer to the relevant provisions of the law for reference.Labor arbitration legal services, ContactAttorney Feng NaAndBeijing Henglu Law FirmDevelop a litigation strategy.

I. Legal basis and interpretation of provisions

1. Article 6 of the "Mediation and Arbitration Law of Labor Disputes in the People's Republic of China" (effective May 1, 2008)

In the event of a labor dispute, the party involved is responsible for providing evidence to support the claims they have made. If the evidence related to the disputed matter is in the employer's possession, the employer should provide it; if the employer fails to do so, they will bear the adverse consequences. After receiving the application, the enterprise should systematically sort through evidence such as contracts, salaries, attendance records, and company regulations, and proactively fulfill its obligation to provide evidence.

2. Article 38 of the Mediation and Arbitration Law of the People's Republic of China on Labor Disputes (effective May 1, 2008)

During the arbitration process, the parties have the right to cross-examine and debate, and the arbitration tribunal shall safeguard the parties' right to present their opinions. Enterprises should fully defend against the three aspects of evidence, the legal basis of the system, and the legality of the termination in the defense and court hearings, so as to avoid being passive and losing the opportunity to refute due to not appearing in court or giving up the right to cross-examine.

3. Practical judicial interpretation

The court and arbitration emphasize that employers bear the burden of proof for wage standards, attendance, and reasons for termination. Pay slips, performance evaluation forms, audio recordings, etc. can prove the composition of wages; if the system is not publicly announced, it cannot be used as a management basis. The most common pitfall for enterprises is that evidence is scattered and there is no trace of the system being publicly announced, resulting in claims not being accepted and losing the case.

II. Real cases of Henglue Law Firm (detailed review)

Review of the case:S某 joined a technology company as a hardware engineer on May 19, 2021, and the labor contract was valid until May 18, 2022, when it terminated. S某's total salary during the probation period was 20,000 yuan per month, and after being confirmed, it consisted of a basic salary of 20,000 yuan, position allowances, performance bonuses, and subsidies. During his employment, S某 never took paid annual leave. The company claimed that there were no clear provisions on performance bonuses and benefits, and they were paid based on the company's performance. S某 filed a labor arbitration, but the arbitration and the first-instance court only partially supported his claims. S某 was not satisfied with the outcome and entrusted Beijing Henglue Law Firm to handle the case for him.Feng NaThe lawyer filed an appeal, and the core dispute is whether the salary standard includes performance bonuses and whether there is an agreement on the 13th month's salary.

The focus of the controversy:First, whether S's salary standard includes performance-based pay; second, whether the two parties have agreed on the 13th month's salary; and third, the determination of the amount of unpaid annual leave salary and welfare pay.

Our position and the other party's position are as follows:S某 requests that the court change the judgment and order the company to pay the performance salary difference of 26,264.84 yuan, the welfare salary of 3,750 yuan, the 13th month's salary of 23,700 yuan, and the unpaid annual leave salary of 22,046 yuan; the technology company agrees with the judgment of the first instance, but does not agree with the appeal request and reasons.

Attorney's Strategy and Legal Opinion:Attorney Feng Na submitted the performance evaluation form for March 2022, audio recordings, and arbitration transcripts to prove that the company implemented performance scoring but failed to make it public, and could not deduct salaries without justification. The arbitration transcripts showed that the company recognized the authenticity of the pay slips, which stated that there was a performance-based salary every month and that 20% of the salary was unpaid. Although the contract did not specify the amount of the performance-based salary, it stipulated that it included a performance-based salary, and the pay slips also supported this. Therefore, the company could not deduct salaries without justification.

The court's reasoning and the outcome of the case:The second-instance court adopted the lawyer's main arguments, revoked some of the first-instance court's rulings, and ruled that the technology company should pay S * the performance wage difference of 24,946.55 yuan, the unpaid annual leave wage of 19,613.79 yuan, and the welfare wage of 3,750 yuan. The court held that the pay slips corroborated that the wage included performance bonuses, and the company failed to provide evidence of the performance evaluation. The court confirmed the wage composition after the employee was promoted, and calculated the unpaid annual leave wage at 19,613.79 yuan. The court did not support the 13th month's salary because there was no sufficient evidence. If the employer fails to provide evidence, it shall bear the adverse consequences.

This case is handled by Beijing Henglu Law FirmFeng NaThe attorney (practice certificate number: 11101202211562923, subject to the certificate issued by the judicial administrative organ) acts as the agent.

III. Frequently Asked Questions

Q1: What is the first step for the company to take after receiving the arbitration application form?

Submit a defense statement during the defense period, systematically organize evidence such as contracts, pay slips, attendance records, rules and regulations, and termination notices, and clarify the focus of the dispute. Never ignore it. Absence may be regarded as giving up the right to defend oneself and bearing unfavorable consequences. Therefore, it is necessary to actively respond to the lawsuit.

Q2: What evidence does the company need to provide in the arbitration process?

The key evidence includes the wage standards and composition, attendance records and disciplinary violations, the democratic publicity of the system, and the legal basis for termination. Where the evidence related to the dispute is in the employer's possession, the company has an obligation to provide it. Failure to do so will result in adverse consequences, and the company needs to collect a complete chain of evidence in advance.

Q3: Can the company's unannounced rules be used as a basis for dismissal?

No. Rules and regulations must be formulated through democratic procedures and publicly announced and notified before they can be used as a basis for management or termination. If the rules and regulations are not announced, the workers will not be aware of them, and the company's decision to terminate based on such rules may be deemed illegal and result in the need to pay compensation. The procedural legitimacy of these rules and regulations is indispensable.

Q4: What should I do if I'm not satisfied with the arbitration result?

For matters other than the final ruling, the parties may file a lawsuit with the people's court within 15 days from the date of receipt of the ruling; they may also appeal against the first-instance ruling. The right to sue should be exercised within the statutory time limit. If the ruling takes effect after the time limit, it will be much more difficult to seek remedies.

Q5: What will happen if the company refuses to enforce the arbitration award after losing the case?

If one party fails to comply with the effective judgment, the other party may apply to the people's court for enforcement. If the company refuses to enforce the judgment, it may be listed as a dishonest party and subject to compulsory measures. It is recommended to actively comply with the judgment or negotiate with the other party to avoid increasing legal risks and reputational damage, and harming the company's credit.

IV. Suggestions for Protecting Rights and Interests

  • Upon receiving the application, we will immediately start sorting out the evidence, and file and archive the contracts, payrolls, attendance records, regulations, and termination documents in a systematic manner.
  • The defense focuses on the basis of the claim and the evidence, refuting each unfounded claim one by one to avoid making general denials.
  • The system must be subject to democratic public disclosure, notify the trade union before terminating the contract, and retain management records to support the defense.
  • If you file a lawsuit against an unfavorable ruling within 15 days, the ruling will take effect after the deadline and will be subject to compulsory enforcement.
  • For group or complex disputes, it is advisable to engage a lawyer as soon as possible to develop an integrated plan for litigation response and subsequent legal actions.

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·Attorney Feng Na·Beijing Henglue Law Firm