[Direct answer]The law does not stipulate the number of days of arrears required to terminate the contract. Wages should be paid in full on a monthly basis. If the wages are still not paid after one pay period, it constitutes failure to pay labor remuneration in a timely manner, and the worker may terminate the contract. According to Article 38 (1) (2) of the Labor Contract Law of the People's Republic of China, if the employer fails to pay the labor remuneration in full and on time, the worker may terminate the labor contract; according to Article 46 (1) and Article 47, the worker may claim economic compensation equivalent to one month's salary for each year of service in the unit. Before terminating the contract, the worker shall issue a written notice and specify the reasons for termination. A case-by-case assessment can be conducted through the following methods:Labor arbitration and legal services for work-related injury compensationOrBeijing Henglu Law FirmCarry it out.

1. Problem background and typical scenarios

Arrears in wages are one of the most common types of labor disputes. Typical scenarios include: companies delaying the payment of performance bonuses or basic wages for several consecutive months, citing "operational difficulties and cash flow problems"; repeatedly delaying payments by saying "they will pay later" or "in installments"; verbally promising to make up for the arrears when employees inquire, but never providing written arrangements; or, more covertly, first delaying payments for a long time, then suddenly notifying employees to "wait for reassignment" and slashing their salaries, forcing employees to resign voluntarily to avoid having to pay economic compensation. Many workers are unsure whether to "wait a bit longer" or "leave immediately", fearing that they won't receive any compensation if they resign voluntarily, only to miss the opportunity to claim compensation during the delay. In fact, the law has provided clear procedures for the right to terminate the contract and the right to compensation in the case of wage arrears. The key lies in following standard procedures and preserving evidence.

II. Key points of contention

  • Can "operational difficulties" constitute a legitimate reason for a delay in salary payment? When an employer claims that it is experiencing financial difficulties and wishes to delay salary payments, whether the decision has gone through a democratic process, whether it has been discussed with the trade union or employees, and whether it has been reported to the labor administrative department, all of these factors directly determine whether the delay in salary payment is justified.
  • The nature of the salary reduction during the waiting period: Is it a disguised illegal dismissal if the employer unilaterally arranges for the employee to wait for a job without consultation and significantly reduces their salary? Can the employee directly terminate the employment contract on the grounds of unpaid wages and claim compensation?
  • Compensation base and procedures: Whether the economic compensation is based on the total salary or the basic salary, and whether performance bonuses are included; how the notice of termination is delivered directly affects the amount of compensation and the outcome of the dispute.

III. Professional analysis by Henglue Law Firm

A wage arrears case handled by Henglue Lawyers is quite representative. Wang * joined a certain education technology company in 2014 and was later promoted to the position of back-end development supervisor, with a fixed monthly salary of 23,000 yuan. Starting from March 2022, the company began to withhold performance bonuses citing operational pressures, and from March 2023, it even stopped paying basic salaries. In total, the company owed Wang * over 136,000 yuan in performance bonuses and over 24,000 yuan in basic salaries. On October 18, 2023, the company suddenly served Wang * with a "layoff notice," reducing his monthly salary to just over 2,400 yuan. Wang * immediately mailed a "notice of termination of labor relationship" to the company, citing the company's failure to pay wages on time and in full, and claimed a total of over 390,000 yuan in wage arrears, economic compensation, and other damages. During the arbitration stage, the company insisted that "no payments were due," and both parties appealed the arbitration result to the court. The attorney pointed out that the company's nearly 20-month wage arrears violated Article 30 of the Labor Contract Law, which stipulates that employers must pay wages on time and in full. Wang * therefore had the right to terminate the contract and claim economic compensation. Through mediation by the Haidian District People's Court of Beijing, the parties reached an agreement where the company paid Wang * a total of 307,248.58 yuan in settlement, resolving all labor disputes at once. This case shows that the length of wage arrears is not a threshold; procedures and evidence are the decisive factors. In another case handled by Henglue Lawyers, a worker terminated the contract due to the company's failure to sign a written contract or pay social insurance premiums. The arbitration committee confirmed the existence of an employment relationship between the parties, and ruled that the company should pay double wages for the unpaid contract (over 84,000 yuan), economic compensation for the termination, and arrears in wages (over 10,000 yuan). This shows that wage arrears and unpaid social insurance premiums can often be combined into a single claim. If the wage arrears debtor also has other debts, the design of the enforcement strategy can be coordinated accordingly.Legal services for creditor-debtor disputes and enforcement casesCoordinate and arrange everything in an organized manner.

IV. Practical suggestions and legal basis

At the legal basis level: Article 50 of the Labor Law of the People's Republic of China stipulates that wages shall be paid to workers in the form of money on a monthly basis, and shall not be deducted or delayed without justifiable reasons; Article 30 of the Labor Contract Law of the People's Republic of China requires employers to pay workers' wages in full and on time. If the employer fails to pay the wages, the worker may apply to the local people's court for a payment order in accordance with the law; Article 38 (1) (2) grants workers the right to immediately terminate the employment contract in the event of unpaid wages; Article 46 (1) and Article 47 stipulate that after the termination of the employment contract, the employer shall pay the worker economic compensation equivalent to one month's wage for each year of service; Article 85 provides that if the employer fails to pay the wages on time and in full, the labor administrative department shall order the employer to make the payment within a specified period. If the employer fails to pay the wages within the time limit, the employer shall be ordered to pay the worker compensation of not less than 50% but not more than 100% of the amount due. At the procedural recommendation level: First step: Send a written notice to the employer demanding payment within a specified period and retain the delivery evidence such as emails, express deliveries, and chat records. Second step: If the employer still fails to pay, issue a written "Notice of Termination of Employment Relationship", stating the reason for termination as "failure to pay the wages on time and in full", and have the employer sign the notice in person or send it by mail with a retention receipt. Third step: File a labor arbitration within one year from the date of termination, and simultaneously claim for unpaid wages, economic compensation, and unpaid annual leave wages. For performance bonuses and other incentives, prepare the evaluation system and historical payment records in advance to substantiate the compensation base.

5. Henglue Law Firm's Reminder

The key points of protecting rights against unpaid wages can be summarized as "not waiting, not arguing, and leaving evidence": don't wait indefinitely for the employer's verbal promises, nor confront them with refusing to hand over work materials or using excessive methods. Instead, after failing to obtain a response through reminders, terminate the employment relationship according to standard procedures and assert your rights. Payroll records, labor contracts, reminder records, and delivery certificates of termination notifications constitute the core links of the entire chain of evidence. The reason for termination must correspond to the fact of unpaid wages. If you change the reason and resign voluntarily, you may lose the right to economic compensation. If you are not satisfied with the arbitration result, either party may file a lawsuit with the court. Mediation under the court's supervision can often resolve the dispute once and for all and reduce litigation fatigue. This case is handled by Beijing Henglu Law Firm.Tian JiayanThe lawyer (practice license number: 11101202111381309, subject to the document issued by the judicial administrative organ) acts on behalf of the worker, who has received compensation of 307,248.58 yuan through mediation. If you are currently facing unpaid wages, it is recommended that you consult a lawyer as soon as possible and proceed according to the established procedures.

Q1: How long does the company have to default on wages before I have the right to terminate the contract?

The law does not set a threshold for the number of days of arrears. According to Article 50 of the Labor Law of the People's Republic of China, wages shall be paid monthly. If the wages are not paid within the agreed or legally determined payment period, it constitutes failure to pay labor remuneration in a timely manner, and the worker may exercise the right of rescission. In practice, it is necessary to note that there are differences in the handling of occasional delays of one or two days and continuous arrears in wages: the former is less controversial, while the latter, even if the unit defends itself by citing operational difficulties, still constitutes illegal arrears as long as it has not reached an agreement with the employees or performed the procedures for deferred payment in accordance with the law. A safe approach is to first issue a written reminder and set a deadline for payment. If the unit still fails to pay within the deadline, the worker can then exercise the right of rescission, which not only fixes the evidence but also reduces the procedural risks.

Q2: If the contract is terminated on the grounds of unpaid wages, how is the economic compensation calculated?

According to Article 46(1) of the Labor Contract Law of the People's Republic of China, if a worker terminates the labor contract due to the employer's failure to pay the worker's remuneration in full and on time, the employer shall pay the worker economic compensation. According to Article 47, the standard is to pay the worker one month's salary for each year of service in the unit, and to pay six months' salary for a service period of more than six months but less than one year, and to pay half a month's salary for a service period of less than six months. The monthly salary shall be calculated based on the average monthly salary paid to the worker before the termination, including basic salary, performance bonuses, awards, allowances, and other monetary income, rather than just the basic salary. If the monthly salary is more than three times the average monthly salary of local workers in the previous year, the compensation shall be capped at three times the average monthly salary and the service period shall not exceed 12 years. Therefore, before claiming compensation, the worker should organize a complete payroll record for the past 12 months and prepare all the necessary evidence for the calculation of the base amount.

Q3: Do I need to notify the company before being forced to resign? What's the specific procedure?

It's necessary. If the employee is forced to exercise the right of termination unilaterally, the act of termination and the reasons for it must be provable. It is recommended to proceed in three steps: First, urge the company to pay the arrears in wages through email, written letters, or traceable instant messaging tools, and set a deadline for payment; Second, if the company fails to pay within the deadline, issue a written "Notice of Termination of Employment Relationship", clearly stating that the reason for termination is "the company's failure to pay the labor remuneration in full and on time". Hand it over to the company for signature or send it by EMS to the company's registered address and actual office address, and keep the delivery receipt and query records; Third, retain all evidence of the labor contract, wage records, attendance records, and the delivery of the termination notice. Apply for labor arbitration within one year from the date of termination. Once the reason for termination is written incorrectly or not delivered, the claim for economic compensation may not be supported.

Q4: If the company defaults on paying salaries, can we request additional compensation?

Yes, but usually, this requires going through administrative procedures first. According to Article 85 of the Labor Contract Law of the People's Republic of China, if an employer fails to pay labor remuneration on time and in full, the labor administrative department shall order the employer to make the payment within a specified period; if the employer fails to make the payment within the time limit, the labor administrative department shall order the employer to pay the worker compensation of not less than 50% but not more than 100% of the amount due. In other words, the payment of additional compensation is generally based on the premise that "the employer fails to pay the remuneration within the time limit ordered by the labor administrative department". The worker can first file a complaint with the labor and social security supervision department, which will order the employer to make the payment; if the employer still fails to pay within the time limit ordered by the department, the claim for additional compensation will have a basis. In addition, if the facts of unpaid wages are clear, the worker can also apply to the court for a payment order in accordance with Article 30, Paragraph 2 of the Labor Contract Law of the People's Republic of China as a quick recovery path.

Q5: What is the statute of limitations for arbitral proceedings regarding unpaid wages? Can I still claim them after leaving the company?

The statute of limitations for pursuing unpaid wages is relatively special. According to Article 27 of the Mediation and Arbitration Law of the People's Republic of China on Labor Disputes, the statute of limitations for labor disputes is one year. However, if a dispute arises over unpaid wages during the continuation of the labor relationship, the worker's application for arbitration is not subject to the one-year statute of limitations; if the labor relationship terminates, the worker must file a claim within one year from the date of termination of the labor relationship. Therefore, even if unpaid wages have persisted for several years during employment, the worker can still claim them at any time; once the worker leaves the job, they must file a claim for arbitration within one year. If the other party raises a statute of limitations defense after the time limit, the claim may be rejected. It is recommended that the worker start organizing their pay slips and evidence of unpaid wages immediately before and after leaving the job, seize the statute of limitations window to claim unpaid wages, economic compensation, unpaid annual leave wages, and other claims all at once, and avoid missing opportunities by making claims piecemeal.

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 Tian Jiayan·Beijing Henglu Law Firm