[Direct answer]After the labor arbitration award takes legal effect, if the company fails to perform its obligations within the time limit, the worker may, in accordance with Article 51 of the Labor Dispute Mediation and Arbitration Law of the People's Republic of China, apply to the people's court with jurisdiction for enforcement. The period for applying for enforcement is two years. During the enforcement, the court may inquire into, freeze, and transfer the company's deposits, and seize and auction its property. If the company has the ability to perform but refuses to do so, it may be included in the list of dishonest debtors and subject to restrictions on high-consumption activities. It is recommended to prepare the award, service certificates, and clues to the company's accounts and assets as soon as possible to submit an enforcement application. For reference only.Labor arbitration and legal services for work-related injury compensationAndBeijing Henglu Law FirmMy experience in handling this matter.

1. Problem background and typical scenarios

The most frustrating scene for workers after winning an arbitration case is that the company drags its feet and refuses to pay even after the arbitration award has taken effect. Common scenarios include: the company repeatedly delays payment by citing "we are raising funds" or "the financial process is underway"; cancelling the original account and changing the operating entity to attempt to render the award invalid; verbally claiming "we have already filed a lawsuit against the award" while actually exceeding the statute of limitations; or small companies with no funds in their accounts and no visible assets under their names. It should be noted that the arbitration award does not take effect immediately upon delivery: the award will only become legally binding if the party fails to file a lawsuit with the court within 15 days from the date of receiving the award. For a final arbitration award that meets statutory requirements, the employer is not allowed to file a lawsuit and can only apply for its revocation in accordance with the law. If the company still refuses to pay after the award takes effect, it should resolutely proceed with the enforcement process rather than wait indefinitely for the company to voluntarily comply with the ruling.

II. Key points of contention

  • Has the arbitration award taken effect? If the other party claims that they have "filed a lawsuit", you should require them to provide the court's acceptance notice and verify the time of filing the lawsuit. If no lawsuit is filed within 15 days or a lawsuit is filed against the final arbitration award, the validity of the award will not be affected, and you can directly apply for enforcement.
  • The subject of enforcement and property clues: If the company changes its name, is deregistered, or has no funds in its books, it is necessary to determine the qualified subject of enforcement according to law, and provide as much property clues as possible, such as bank accounts, accounts receivable, equipment and vehicles. If necessary, apply to the court for investigation or to add additional responsible parties.
  • Responses to enforcement failures: If there are no properties available for enforcement, the court may terminate the current enforcement procedure, but this does not mean that the creditor's rights are extinguished. If property clues are found, the creditor may apply for resuming enforcement at any time; in cases such as shareholders failing to pay the registered capital in full, withdrawing the paid-in capital, or deregistering the company without liquidation, the creditor may claim corresponding liabilities in accordance with the law.

III. Professional analysis by Henglue Lawyers

Obtaining an effective arbitration award merely "fixes" the creditor's rights. To turn the award into actual money, it is necessary to actively promote its enforcement and execution. Henglue Lawyer's approach involves three steps: **Step 1**: Calculate the deadline for enforcement and execution. If the arbitration award specifies a deadline for performance, the applicant can apply for enforcement on the day following the deadline. If the company claims to have already filed a lawsuit, the applicant should require the company to present the court's acceptance notice and verify whether the lawsuit was filed within 15 days of receiving the arbitration award. Overdue lawsuits do not affect the validity of the award. **Step 2**: Submit an enforcement application to the basic-level court at the company's registered address or where the assets are located. The application must include the enforcement application, the arbitration award, identity documents, and evidence of the assets. During enforcement, the court may freeze and transfer funds, seize and auction assets. Those with the ability to perform but refuse to do so may be added to the credit blacklist and subject to restrictions on high-consumption activities. Those suspected of serious refusal to enforce may be held criminally liable under Article 313 of the Criminal Law of the People's Republic of China. **Step 3**: Monitor asset changes. If the enforcement procedure is terminated, the applicant should immediately apply for resuming enforcement upon discovering new clues. Take a case handled by Henglue Lawyer as an example: Li * from a software company was dismissed for 507 late arrivals and early departures within three months, which violated the attendance system. The lawyer pointed out that the gate access records could not be equated with attendance records, and the company actually implemented WeCom clock-in but failed to fulfill its duty of providing management reminders for disciplinary violations. The arbitration committee ruled that the dismissal was unlawful and ordered the company to pay compensation of 398,231.66 yuan and issue a severance certificate. If the company fails to pay after the award takes effect, the applicant can apply for enforcement according to the above steps. It should be noted that the arbitration award is binding on both parties: A former employee of a Beijing trading company claimed a labor relationship of over 10 years and sought wage arrears of 460,000 yuan and unpaid annual leave compensation of 120,000 yuan. Henglue Lawyer represented the company and proved that the labor relationship had transferred and the annual leave claims exceeded the one-year arbitration statute of limitations. The arbitration committee dismissed all claims. Regardless of the outcome, both parties must enforce the effective award. Employees should actively initiate enforcement to avoid rights being rendered meaningless, and when necessary, they can seek legal assistance.Creditor-debtor relations and enforcement case servicesEvaluate the property recovery plan.

IV. Practical suggestions and legal basis

Legal basis: Article 51 of the "Law of the People's Republic of China on Mediation and Arbitration of Labor Disputes" stipulates that the parties shall perform the legally effective mediation agreement and arbitral award in accordance with the prescribed time limit. If one party fails to perform within the time limit, the other party may apply to the people's court for enforcement in accordance with the relevant provisions of the "Civil Procedure Law of the People's Republic of China". According to the provisions of the Civil Procedure Law, the period for applying for enforcement is two years, starting from the last day of the performance period specified in the legal document. Article 50 of the "Law of the People's Republic of China on Labor Contracts" requires the employer to issue a certificate when terminating or terminating the labor contract, and to pay the due amounts when completing the handover of work. In terms of enforcement measures, the court may freeze and transfer the debtor's deposits according to law, withhold and withdraw his income, and seize, detain, and auction his property. If the debtor has the ability to perform but refuses to perform or evade enforcement, he may be included in the list of dishonest debtors and be restricted in high-consumption activities by his legal representative. Practical suggestions: Record the date of receipt of the arbitral award and estimate the effective time; after it takes effect, first send a written reminder and keep the delivery certificate; when applying for enforcement, submit clues such as bank accounts, office addresses, vehicles and equipment, and accounts receivable simultaneously; after the enforcement case is registered, regularly communicate with the presiding judge about the progress; if the company changes its main body, deregisters, or transfers assets, inform the enforcement court immediately and apply for preservation or addition of the debtor to prevent the property from being disposed of in advance.

5. Henglue Law Firm's Reminder

The judgment does not mean that the money has been received. After the judgment takes effect, the two most important things are: first, calculate the two-year period for applying for enforcement accurately, and the earlier you file the case, the more proactive you will be; second, the clues to the property determine the efficiency of enforcement. Don't just wait for the court to conduct a comprehensive investigation. Instead, actively provide account and asset information. Enforcement cannot be the end. After the completion of the comprehensive enforcement, enforcement can be resumed at any time. For situations such as the malicious liquidation of the company and the failure of shareholders to pay in full, you can also apply for the addition of liable parties according to law. At the same time, we remind the employing units that they should fulfill the judgment according to law. Delay and resistance will not only result in interest on delayed performance and consequences of being untrustworthy, but may also lead to criminal responsibility. If you encounter the company's delay in payment after obtaining the judgment in your favor, it is recommended that you prepare the materials and apply for enforcement as soon as possible, and you can also do it through the following methods:Labor arbitration and legal services for work-related injury compensationEvaluation plan. This case is handled by Beijing Henglu Law Firm.Yu DawaiThe lawyer (practice license number: 11101201010292290, subject to the document issued by the judicial administrative organ) acts as the agent.

Q1: How long after the ruling takes effect can I apply for enforcement?

The ruling will take effect once it is issued. If a party fails to file a lawsuit with the court within 15 days from the date of receiving the ruling, the ruling will become legally binding. For a final ruling that meets the statutory requirements, the employer may not file a lawsuit, but may only apply for its revocation in accordance with the law. If the revocation application is rejected, the ruling will take effect. The ruling will generally specify the performance period. If the company fails to pay within the time limit, the worker may apply to the court for enforcement without the need for an additional grace period. According to Article 51 of the Labor Dispute Mediation and Arbitration Law of the People's Republic of China and the provisions of the Civil Procedure Law, the application period for enforcement is two years, starting from the last day of the performance period specified in the ruling. It is recommended to file a case as soon as possible, as an earlier application will be more conducive to the court's control of the property.

Q2: What materials are required to apply for enforcement?

It mainly includes four categories: First, the application for enforcement, which states the information of the applicant and the person subject to enforcement, the basis for enforcement, the amount of the claim and interest; Second, the effective legal documents, namely the original arbitration award, and, if necessary, the proof of service or the certificate of effectiveness; Third, the applicant's identity materials, including a copy of his/her ID card, and, if he/she authorizes a lawyer to act on his/her behalf, an authorization letter shall be attached; Fourth, the clues to the property, such as the company's public account and the bank where the account is opened, the office address, vehicles and equipment, and accounts receivable. After all the materials are complete, they shall be submitted to the filing window of the basic-level people's court at the company's registered address or online platform. After the court files the case, it will issue an enforcement notice to the person subject to enforcement and conduct online property investigation. The more specific the clues are, the faster the enforcement will proceed.

Q3: If the company has no money in its account and no property under its name, can the enforcement still proceed?

There is still hope. The court can use the online inquiry and control system to check the company's bank deposits, vehicles, securities, real estate, and other assets nationwide. If there are no enforceable assets, the execution process will be terminated, but this does not mean that the debt has been extinguished. If any clues to the assets are found, the applicant can apply for resuming the execution at any time. Clues can also be obtained from the perspective of corporate governance: if the shareholders fail to pay the full registered capital or withdraw the funds, the applicant can apply to add the shareholders as the respondents; if the company is deregistered without liquidation, the applicant can claim that the shareholders should bear responsibility; if the company transfers assets to evade execution, the applicant can apply to include it in the list of dishonest people and restrict its high-consumption behavior. If the circumstances are serious and it is suspected of refusing to execute judgments and rulings, the case can be transferred for criminal prosecution.

Q4: The company said it has already filed a lawsuit. Will the enforcement application be rejected?

It depends on whether the lawsuit is genuine and whether it is filed within the statutory time limit. Employers may file a lawsuit against the non-final arbitration award with the court within 15 days from the date of receiving the arbitration award. If the lawsuit is accepted by the court according to law, the award will not take effect and the enforcement application cannot proceed; but if the other party only verbally claims to file a lawsuit but fails to produce the court's acceptance notice, or the lawsuit is filed more than 15 days after the deadline, the award will still take effect and the enforcement will proceed as usual. For final arbitration awards that meet the statutory conditions, employers have no right to file a lawsuit and can only apply for the revocation of the award according to law, which will not affect the progress of the worker's application for enforcement. After the enforcement case is registered, if the other party claims that the award has not taken effect, the court will review and verify it. Workers can also actively request the other party to present the acceptance materials to avoid the procedure being maliciously delayed.

Q5: What should I do if the company is deregistered or changes its name during the execution period?

Handle the situation on a case-by-case basis. If the company carries out the cancellation registration without going through the statutory liquidation process, resulting in the judgment being unenforceable, the worker may apply to change or add the shareholders or liquidators as the respondents, who shall bear the corresponding responsibilities within the scope of their obligations; if the company only changes its name or the legal representative, it will not affect the enforcement, and the respondent will still be the same legal person, whose assets will be inherited together; if the business, personnel, and assets are transferred as a whole to a newly established company, the evidence of identity confusion can be collected to claim that the related company should bear corresponding responsibilities. If the company shows any signs of being liquidated or transferring assets, the enforcement court should be immediately informed and an application for property preservation should be made to prevent the assets from being disposed of in advance and leading to the failure of enforcement.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the evidence materials, so as to avoid missing the statutory time limit. →Labor arbitration legal services·Attorney Yu Dawei·Beijing Henglu Law Firm