[Direct answer]You can refuse, but you need to do it in a proper way. According to Article 35 of the Labor Contract Law of the People's Republic of China, any change to the agreed terms of the labor contract (with the position and compensation being the core clauses) shall be subject to the consensus of both parties and shall be in writing. If the company unilaterally adjusts the employee's position and reduces their salary, it must meet the reasonable conditions of being necessary for business operations, having a legitimate purpose, not reducing the employee's compensation, and not involving humiliation or punishment. Otherwise, the employee has the right to refuse. The correct approach is to raise objections in writing within a specified timeframe, continue to work in their original position, and retain evidence throughout the process, rather than resigning out of frustration. If the company terminates the labor contract or continues to default on the salary on this basis, the employee can claim compensation for unlawful termination or economic compensation for forced termination. The arbitration statute of limitations is one year. For related solutions, please refer to the following references:Labor arbitration and legal services for work-related injury compensationAndBeijing Henglue Law FirmMy experience in handling this matter.

1. Problem background and typical scenarios

Job transfer and pay cuts often occur during organizational structure adjustments and "covert layoffs". Typical scenarios include: employees being transferred to marginal departments and subjected to significant pay cuts on the grounds of underperformance; being transferred to positions in other locations without consultation after a department's dissolution; being reassigned due to "unsuccessful competition" or "last-place elimination"; employees refusing job transfers being penalized by the company for "disobeying work arrangements", including warnings, deductions of performance bonuses, or even termination of contracts; and companies disguising unilateral pay cuts as "salary system reforms". What employees struggle with the most is: resisting firmly might lead to dismissal, while giving in might mean losing their rights. Directly skipping work might give the company an excuse to terminate the contract. The choice of legal procedures directly determines whether subsequent compensation claims can be established. For the same job transfer, different responses could lead to vastly different outcomes.

II. Key points of dispute

  • The legal boundaries of unilateral job transfer: What is the scope of production and operation needs and employee autonomy? Whether the adjustment is accompanied by a reduction in compensation, whether it is humiliating and punitive, and whether it causes significant adverse effects on commuting and family life are the core elements of arbitration and court review.
  • The methods of refusal and their consequences: Written objections and passive resistance (absenteeism and refusal to attend work) are completely different in legal evaluation; irregular methods of refusal may be considered as violations of discipline, which in turn provide a basis for the company to terminate the contract.
  • After a pay cut, the options for relief are: demanding to make up for the wage difference, requesting to continue to perform according to the original contract, or being forced to terminate the contract on the grounds of failure to pay labor remuneration in full and on time, and claiming economic compensation. The evidentiary requirements and outcomes of each approach vary significantly. It is necessary to choose based on the intention to resign and the availability of evidence.

III. Professional analysis by Henglue Law Firm

The review of unilateral job transfer by arbitration has formed a relatively consistent framework: the employer's autonomy in employment management is not without boundaries, and unilateral job transfer must simultaneously meet the requirement of reasonableness. Henglue Lawyers grasp four dimensions in handling cases: first, necessity. Is there a real business need such as department abolition or business transformation, or is it an exclusionary arrangement against specific employees? Second, legitimacy. Is the job transfer humiliating or punitive, and is it related to the motive of "forcing people to resign voluntarily"? Third, equivalence of treatment. Have there been substantial adverse changes in salary structure, job level, commuting distance, or labor intensity? Fourth, competence. Is the new position compatible with the employee's skills and experience? If the job transfer still lacks reasonableness after review, the employee's refusal to report to the new position does not constitute absenteeism. The company's termination based on this is an illegal termination, and according to Article 87 of the Labor Contract Law of the People's Republic of China, the company should pay compensation at twice the standard of economic compensation. If the salary reduction has become a fact, the employee can request to make up for the wage difference; if the company continues to fail to pay in full, the employee can terminate the labor contract according to Article 38 and claim economic compensation according to Article 46. It should be emphasized that the refusal must have "written evidence": by sending an email or letter expressing disagreement with the change and stating the reasons, and at the same time clocking in and out normally, the procedural advantage can be transformed into an arbitration result. The termination compensation and arbitration solutions of individual cases can be obtained throughLabor arbitration and legal services for work-related injury compensationThe team obtains targeted assessments.

IV. Practical suggestions and legal basis

At the legal basis level: Article 35 of the Labor Contract Law of the People's Republic of China (amended in 2012 and implemented on July 1, 2013) stipulates that amendments to labor contracts must be agreed upon by both parties and in writing; Article 39 defines the circumstances of misconduct that allow employers to unilaterally terminate the contract, and employees' refusal to accept unreasonable job transfers does not constitute "serious violation of rules and regulations"; Article 38 stipulates that if the employer fails to pay labor remuneration in full and on time, the employee may terminate the labor contract; Article 46 stipulates that if the contract is terminated in accordance with Article 38, the employer shall pay economic compensation; Article 47 determines that economic compensation shall be paid at the rate of one month's salary for each completed year of service, and Article 87 stipulates that compensation shall be paid at twice the standard of economic compensation for unlawful termination. Article 27 of the Labor Dispute Mediation and Arbitration Law of the People's Republic of China stipulates that the statute of limitations for arbitration is one year. Practical advice: After receiving the notice of job transfer, respond to the objections in writing within a reasonable period and keep the evidence of delivery; during this period, attend work and clock in normally at the original position without leaving a record of absenteeism; simultaneously collect evidence such as the notice of job transfer, changes in salary, communication records, and historical performance evaluations; if the company first reduces the salary, pay attention to keeping the salary slips and assess whether to initiate forced termination; for negotiated termination, it is necessary to formalize the compensation plan into a written agreement and sign it to avoid verbal promises.

5. Henglue Law Firm's Reminder

When facing a job transfer and pay cut, neither emotional confrontation nor complete acceptance is a good choice. Remember three actions: file a written objection within a limited time, continue to attend work at the original position, and fix evidence throughout the process. If you skip these three actions and directly go on strike, the company will often terminate the contract on the grounds of "serious violation of discipline due to continuous absenteeism". At that time, the illegal termination will become a compliant termination, and the compensation may be zeroed out; conversely, a procedurally standardized refusal to cooperate with a complete chain of evidence can help maintain the original position or negotiate reasonable compensation in most cases. For job transfers based on unsatisfactory performance evaluations, you should also require the company to present the basis for establishing the evaluation system and the evaluation results. An evaluation that is not conducted in accordance with standard procedures cannot serve as the basis for a job transfer. If you are currently facing a job transfer and pay cut or a termination based on this reason, you can seek legal help through the following channels:Labor arbitration and legal services for work-related injury compensationAndBeijing Henglu Law FirmConsult as soon as possible and seize the opportunity for arbitration.

Q1: The company says that "job transfer is an exercise of its autonomy in employing workers", so must employees obey it?

It's not absolute obedience. The employer's autonomy in employing workers is subject to the labor contract. The position and compensation are core provisions of the labor contract, and according to Article 35 of the Labor Contract Law of the People's Republic of China, they must be agreed upon by both parties in principle. In judicial practice, the court will review whether the job transfer is based on real business needs, whether it is humiliating or punitive, whether the salary and position level are reduced, and the extent of its impact on the worker's life. If the adjustment is reasonable and the treatment is not reduced, the employee should cooperate with it. However, if the unilateral job transfer lacks reasonableness, the employee has the right to refuse it. Whether to obey or not cannot be decided by a simple notice from the company. Instead, it depends on whether the adjustment exceeds the reasonable boundaries. The employee should also express his position in writing to fix the evidence for possible arbitration.

Q2: If an employee refuses to report to the new position after being transferred, is that considered absenteeism?

The key lies in whether the job transfer itself is effective. If the job transfer is reasonable and subject to the consultation process, and the employee refuses to report to the new position without a valid reason, they may be deemed to have absented themselves from work. If the job transfer lacks reasonableness and the employee has raised written objections within a reasonable timeframe, refusing to report to the new position constitutes the exercise of contractual rights and generally does not constitute absenteeism. If the company terminates the contract based on this, it is an illegal termination, and the employee can claim double economic compensation in accordance with Article 87 of the Labor Contract Law of the People's Republic of China. A prudent approach is to continue to clock in at the original position while raising written objections, and to document both the "reason for refusal" and the "status of normal performance", so as not to give the company an excuse to terminate the contract on the grounds of violating company rules, and to avoid getting themselves involved in disputes over absenteeism.

Q3: If the company transfers you to a new position and reduces your salary on the grounds of "unsatisfactory performance evaluation", what should you do?

First, we need to refer to the relevant regulations and then review the company's procedures. We should require the company to demonstrate whether the assessment system was established through democratic procedures and publicly disclosed to employees, how the assessment indicators and results were determined, whether employees signed and confirmed the assessment results, and whether there are institutional grounds to support the transfer of employees to other positions after failing the assessment. If the company cannot provide institutional basis or the procedures are obviously not standardized, the transfer of employees to other positions and salary reductions will lack a legal basis. Employees can demand to continue working in their original positions with their original compensation and to make up for the deducted differences. Even if the assessment results are true, a substantial salary reduction without the employee's consent is also required. It is important to preserve evidence such as performance assessment forms, ranking notifications, and communication emails. These are not only the basis for objections, but also key materials for future arbitration. If the company refuses to provide assessment materials, it will bear the consequences of failing to provide sufficient evidence.

Q4: If I am forced to terminate the labor contract, how is the economic compensation calculated?

According to Article 38 of the Labor Contract Law of the People's Republic of China, if the employer fails to pay the worker's remuneration in full and on time, or fails to pay social insurance premiums in accordance with the law, the worker may terminate the labor contract and receive economic compensation in accordance with Article 46. The compensation standard is specified in Article 47: for each year of service in the company, the employer shall pay one month's salary; for a period of more than six months but less than one year, it shall be calculated as one year; for a period of less than six months, it shall be paid half a month's salary. The monthly salary shall be calculated based on the average salary earned in the 12 months prior to the termination, including bonuses, allowances, and subsidies. It should be noted that when terminating the contract on the grounds of "insufficient payment", it is best to first send a written notice to the company demanding payment and retain the evidence to avoid being deemed as having an unfounded reason for termination and failing to obtain compensation; the notice of termination should clearly state the reason and be effectively delivered.

Q5: What are the arbitration time limits and the list of evidence for disputes over job transfer and salary reduction?

The arbitration statute of limitations is one year, calculated from the date when the claimant knows or should have known that his/her rights have been infringed; for claims involving wage differences, the one-year limitation does not apply during the continuation of the labor relationship, but the claimant must file the claim within one year from the date of termination. The evidence list should include: the labor contract and job description, recordings of oral notifications or written notifications of job transfer and salary adjustment, written objections and delivery records, attendance records of the original position, comparison of salary slips before and after the salary reduction, performance evaluation materials, communication records with supervisors and HR departments, and the text of the company's rules and regulations. The evidence should be organized around three key points: "lack of consensus", "lack of rationality", and "actual reduction of treatment". The arbitration requests should be listed separately, such as confirming the illegality of the termination, paying compensation, and making up for wage differences, to avoid omissions.

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