[Direct answer]It's generally illegal for companies to arbitrarily deduct salaries when an employee resigns. According to Article 50 of the Labor Law of the People's Republic of China, wages shall be paid monthly and shall not be withheld or delayed without justifiable reasons. According to Article 9 of the Interim Regulations on Wage Payment, when the employment relationship is terminated or concluded, the employer shall pay the worker's wages in full at one time. Only in legal circumstances such as personal income tax, the personal contribution portion of social insurance, and alimony and support fees required to be withheld by the court may be deducted. If the worker causes economic losses due to his own reasons and needs to compensate, the deduction per month shall not exceed 20% of the monthly salary, and the deduction after the compensation shall not be lower than the local minimum monthly wage. If the worker encounters withholding of wages, he can file a complaint with the labor and social security supervision department or apply for labor arbitration. For more details, please refer to the following link:Labor arbitration and legal services for work-related injury compensationIf the debtor fails to make the payment within the time limit as ordered, he/she may also claim for compensation of an amount equal to more than 50% but less than 100% of the amount due.

I. Problem background and typical scenarios

The settlement of resignation is the point at which wage disputes are most likely to erupt. Typical scenarios include: workers resigning without giving 30 days' written notice in advance, and the employer directly withholding the entire month's salary; refusing to pay the last month's salary on the grounds that the worker has not completed the handover of work; deducting money under the guise of clothing fees, training fees, and deposits; and setting the performance salary for the month of resignation to zero on the grounds that the performance assessment did not meet the standard; demanding that workers sign a document stating that "the wages have been settled and there are no further disputes between the parties", but still delaying the payment of some funds. Among these practices, only a very small number have legal basis, and most of them constitute withholding or delaying payment. Workers can seek legal redress, and although the amount involved may be small and the evidence requirements are not high, the overall cost of protecting their rights is manageable.

II. Key points of contention

  • Is there a legal basis for the deduction of wages? Apart from withholding and paying personal income tax, the personal contribution part of social insurance, and the withholding matters determined by effective judgments, deducting wages must have clear legal provisions or legal agreements. Otherwise, it constitutes illegal withholding of wages.
  • The restrictions on deducting compensation for losses: If the unit claims that the employee's resignation has caused losses, it must provide evidence of the actual losses and claim them in accordance with the provisions of the labor contract. The deduction is subject to two constraints: a maximum of 20% per month and a minimum wage floor. The unit cannot deduct any amount it wants.
  • The scope of application of the penalty clause: According to Article 25 of the Labor Contract Law of the People's Republic of China, except for the service period (Article 22) and the non-compete obligation (Article 23), it is not allowed to stipulate that the employee shall bear the penalty. Withholding funds in the name of penalty has no legal basis.

III. Professional analysis by Henglue Lawyers

When handling such cases, Henglu Law Firm usually first qualifies each deduction item. In practice, the evaluation of high-frequency deduction types is as follows: deducting one month's salary on the grounds of failing to give advance notice is considered confusing the resignation notice period with salary payment. If the employer claims losses, it must provide evidence separately and cannot directly deduct the salary to offset them; refusing to pay wages on the grounds of failing to complete work handover confuses two legal relationships, as salary payment does not presuppose the completion of handover; deducting deposits, clothing fees, and training fees lacks basis except for the special training fees during the service period as stipulated in Article 22; and resetting the entire month's salary to zero on the grounds of failing to pass the assessment requires reviewing whether the assessment system was formulated and publicized through democratic procedures and whether the assessment results have factual basis. There are three paths for rights protection: first, file a complaint with the labor and social security supervision agency, which will order the employer to pay within a specified time limit; second, apply for labor arbitration to request payment of the withheld wages, in accordance with Article 27 of the Labor Dispute Mediation and Arbitration Law of the People's Republic of China, disputes over unpaid labor remuneration during the existence of the labor relationship are not subject to the one-year statute of limitations, but should be raised within one year from the date of termination of the labor relationship; third, in accordance with Article 30 Paragraph 2 of the Labor Contract Law of the People's Republic of China, if the employer defaults on or fails to pay the labor remuneration in full, the worker may apply to the people's court for a payment order according to law. For matters involving execution of payments and investigation of property clues, the parties may cooperate with each other.Creditor-debtor relations and enforcement case servicesTeams need to cooperate well with each other to achieve the best results.

IV. Practical suggestions and legal basis

Legal basis: Article 50 of the Labor Law of the People's Republic of China prohibits deducting or unreasonably delaying wages; Article 15 of the Interim Regulations on Wage Payment lists the legal circumstances under which wages may be deducted; Article 16 stipulates that compensation for economic losses caused by the worker's own reasons may be deducted from wages, but the deduction shall not exceed 20% of the monthly wage. After deduction, if the remaining wage is lower than the local minimum wage standard, it shall be paid at the minimum wage standard; Article 9 requires that the employer pay the wages in full upon termination or termination of the labor contract. Article 50 of the Labor Contract Law of the People's Republic of China stipulates that upon termination or termination, the employer shall issue a certificate and handle the transfer of the worker's files and social insurance. The economic compensation shall be paid upon completion of the work handover; Article 85 stipulates that if the employer fails to pay the labor remuneration within the time limit ordered by the labor administrative department, the employer shall pay a compensation of not less than 50% but not more than 100% of the amount due. Practical suggestions: When leaving the job, request settlement of wages in writing and keep the receipts, emails, and chat records; preserve the labor contract, pay slips, bank statements, and attendance and scheduling records; first file a complaint or send a letter of reminder to create conditions for claiming additional compensation; and check the amounts item by item before signing any settlement documents, and note the right to reserve if there are disputes.

5. Henglu Law Firm's Reminder

The amount of wage deduction disputes is usually not large, but it relates to the worker's subsequent background checks and social insurance continuation. When handling the matter, it is necessary to settle the accounts clearly and keep good evidence. For documents issued by the unit stating that "the wages have been settled and there are no further disputes between the two parties", it is necessary to check each item before signing. If there are indeed disputes, the worker can indicate in writing and reserve the right to claim. It is not necessary to confront the employer when protecting one's rights. Most cases can be resolved after the supervision intervenes or the arbitration case is filed. If you encounter problems with wage deduction after leaving the job, you can seek help through the following channels:Beijing Henglue Law FirmEvaluate the evidence and the amount of the claim, or visitLabor arbitration and legal services for work-related injury compensationUnderstand the processing procedures; for comprehensive employment disputes, you can also refer to the relevant provisions.Special services and other case-related services.

Q1: Is it legal for the company to deduct a month's salary from me for resigning without giving 30 days' notice in advance?

It's illegal. The obligation to give 30-day written notice in advance of resignation is stipulated in Article 37 of the Labor Contract Law of the People's Republic of China. Violating this obligation and wage payment are two separate legal issues. If the employer believes that the worker's unlawful termination has caused losses, it shall, in accordance with Article 16 of the Interim Regulations on Wage Payment, provide evidence of the actual losses and claim compensation as agreed in the labor contract, subject to a limit of no more than 20% of the monthly wage; deducting the entire month's wage without considering the losses constitutes unlawful deduction, and the worker may complain or apply for arbitration to request reimbursement. If the employer deducts the entire month's wage solely on the grounds of "not giving advance notice", it will be difficult to gain support in arbitration.

Q2: Is it reasonable for the company to wait until the next payday to pay the salary for the month of resignation, and to delay it for more than a month?

According to Article 9 of the Interim Regulations on Wage Payment, when the labor contract is terminated or rescinded, the employer shall pay the worker's wages in full at the time of termination or rescission. In practice, some arbitration institutions tolerate the practice of settling the worker's monthly salary for the month of leaving according to the unit's established payroll cycle, but the prerequisite are that the cycle is reasonable and there is no malicious delay; if the salary is delayed for a long time beyond the normal payroll date, or deducted indefinitely on the grounds that the handover has not been completed or the items have not been returned, it constitutes arrears and deductions. It is recommended to send a written reminder with a specified deadline when leaving, and if the employer fails to pay within the deadline, you can file a complaint or arbitration, and at the same time keep the evidence of the reminder, which provides a fixed basis for claiming additional compensation in the future.

Q3: The company said that I damaged the equipment and caused losses, so they deducted my salary as compensation. What's the maximum amount they can deduct?

According to Article 16 of the "Interim Regulations on Wage Payment", if the worker causes economic losses to the employer due to his/her own reasons, the employer may require compensation in accordance with the labor contract and deduct it from the worker's wages, but the deduction from the monthly wages shall not exceed 20% of the worker's monthly wages. If the remaining wages after deduction are lower than the local minimum wage standard, the employer shall pay according to the minimum wage standard. The employer shall also bear two preliminary burdens of proof: the actual occurrence of the losses and their amount, and the causal relationship between the losses and the worker's fault. If the employer directly deducts the wages monthly without a labor contract basis or evidence of the losses, it constitutes withholding of wages, and the worker may request the return of the deducted wages and claim corresponding responsibilities.

Q4: If there's no work handover, can the company refuse to pay the salary?

No. The handover of work and the payment of wages are separate obligations. According to Article 50 of the Labor Contract Law of the People's Republic of China, employees should handle the handover of work in accordance with the agreement between the two parties, and the employer shall pay the economic compensation in accordance with the law when the handover of work is completed. However, this article does not grant the employer the right to withhold wages in opposition to the handover. The employee's right to request wages after leaving the job is based on the work already provided and will not be extinguished due to disputes over the handover. If the employer believes that losses have been caused by the failure to hand over work, it should claim compensation through consultation or arbitration rather than refusing to pay wages. Of course, cooperating with the handover is the employee's obligation of good faith, and refusing to hand over work may trigger the employer's claim for compensation. It is recommended to arrange it properly.

Q5: How can I get back the salary that was deducted? What materials do I need to prepare?

There are two approaches: either file a complaint with the labor supervision and inspection authority at the employer's location or the workplace, which is a quick and low-cost process; or apply for labor arbitration within one year from the date of termination of the labor relationship. If you are not satisfied with the arbitration decision, you can also file a lawsuit. The required materials include: labor contracts, pay slips and bank statements (to prove the wage standard and the fact of deduction), attendance records, resignation handover forms or termination certificates, chat records and letters urging payment, and the employer's deduction notices or system documents. For cases involving performance-based deductions, you should also collect the text of the assessment system and the basis for the assessment results. In most cases where the materials are complete, the employer will make the payment after mediation or arbitration. If the employer refuses to pay after the decision takes effect, you can apply for compulsory enforcement by the court.

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