[Direct answer]In the Beijing area, the compensation for unlawful termination of labor contracts shall be paid at twice the standard of economic compensation, commonly known as "2N", in accordance with Articles 48 and 87 of the Labor Contract Law of the People's Republic of China. The economic compensation shall be paid at the rate of one month's salary for each year of service in the unit; 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 at the rate of half a month's salary. The monthly salary refers to the average monthly salary of the last 12 months before the termination. If it is more than three times the average monthly salary of workers in the municipality where the employer is located in the previous year, it shall be capped at three times the average monthly salary and the maximum service period shall not exceed 12 years. The worker may also claim to continue to perform the contract. It is recommended to first calculate the length of service and the salary base, and then determine whether to claim compensation or restore the labor relationship. For details, please refer to the relevant provisions.Labor arbitration and work-related injury compensation services.
1. Problem background and typical scenarios
Illegal termination of employment is extremely common in workplace disputes. Typical scenarios include: the company terminates an employee on the grounds of "serious disciplinary violations" or "incompetence", but lacks sufficient evidence; terminating employees under the guise of inspections and rectifications or organizational restructuring; illegally dismissing employees during pregnancy, medical leave, or work-related injury periods; and abruptly terminating employment before the contract expires. Many workers are confused about "how much they can get" and "whether they will receive compensation or be reinstated". Employers often mistakenly believe that they can terminate employment at will by paying compensation, but in fact, the legality of the termination is a prerequisite. Related employment compliance issues can be addressed in conjunction withBusiness and contract dispute services for enterprisesReview.
II. Key points of contention
There are four key points of the dispute. Firstly, whether the termination is legal: the employer must prove that there are circumstances of unilateral termination as stipulated in Article 39 of the Labor Contract Law, or that the procedures in Articles 40 and 41 have been followed, otherwise it constitutes a violation of the law. Secondly, the base amount of compensation: whether the average monthly salary of the previous 12 months includes bonuses and subsidies, and whether high-income individuals trigger the three-fold cap. Thirdly, the calculation of service period: segmentation, critical points, and continuity. Fourthly, the choice between continued performance and compensation: if the worker claims continued performance and the contract is enforceable, the employer should continue to perform the contract rather than pay compensation. For wage disputes, reference can be made to the relevant provisions of the Labor Contract Law.Creditor-debtor relations and enforcement case services.
III. Professional analysis by Henglue Lawyers
Based on the typical cases handled by our firm, the determination of illegal termination highly relies on facts and evidence. In the case of the twelve workers being inspected, rectified, and dismissed by A Company represented by Attorney Feng Na, A Company unilaterally terminated the contracts on the grounds that the recruitment procedures were not standardized during the inspection and rectification. The arbitration, first-instance, and second-instance courts all ruled that the human resources registration is not a prerequisite for the effectiveness of the labor contract, and the inspection and rectification and the non-standardized recruitment do not constitute the statutory termination circumstances stipulated in Article 39 of the Labor Contract Law. The company's termination was illegal, and the court ordered the continuation of the contract. This case was handled by Beijing Henglu Law Firm.Feng NaThe attorney (practice license number: 11101202211562923, subject to the document issued by the judicial administrative organ) acts as the agent. In another case of illegal termination compensation handled by the same law firm, the employee's monthly salary was 12,000 yuan, and the company terminated the contract without a valid reason. The court ruled that the company should pay the illegal termination compensation of 64,863.77 yuan in accordance with Article 48 and Article 87 of the Labor Contract Law, which directly reflects the calculation of "2N". Henglue Law Firm advises: To claim compensation, it is necessary to first determine the illegality of the termination, and then accurately calculate the base amount and the length of service.
IV. Practical suggestions and legal basis
The legal basis is Article 47 (Calculation of Economic Compensation), Article 48 (Consequences of Unlawful Termination), and Article 87 (Compensation Equal to Twice the Economic Compensation) of the Labor Contract Law of the People's Republic of China (amended on December 28, 2012, and implemented on July 1, 2013); Article 27 of the Implementing Regulations of the Labor Contract Law (implemented on September 18, 2008) explicitly states that the monthly wage for economic compensation shall be calculated based on the wages actually received, including bonuses and allowances. Practical suggestions: Immediately fix evidence (contracts, pay slips, termination documents, and system documents) upon receiving the termination notice; calculate the length of service and average monthly wage to determine whether the three-fold cap applies; choose to claim compensation or request continued performance based on the claim; and apply for arbitration within one year. For cases involving collective rights protection of multiple employees, relevant provisions can be combined accordingly.Special services and other case servicesCoordinate and plan things in an organized and efficient way to achieve the best results with the least effort.
5. Henglu Law Firm's Reminder
When facing an illegal termination, the first question to ask is "whether there are legal grounds and procedures for the termination," rather than just calculating the compensation. It is essential to preserve evidence such as the labor contract, pay slips, termination notices, company rules and regulations, and communication records. For calculation purposes, the average monthly salary over the past 12 months before the termination shall be used as the base, and the amount shall be accumulated based on the length of service and multiplied by two. High-income individuals should note that the compensation is capped at three times the average salary and the maximum compensation period is 12 years. For remedies, the arbitration statute of limitations is one year, and the right to win the case will be lost if the time limit is exceeded. Whether to claim compensation or seek reinstatement of the employment relationship should be determined based on the recoverability of the position. If necessary, an assessment can be conducted throughLabor arbitration and work-related injury compensation servicesWhen working with lawyers, don't be easily persuaded by their unrealistic promises of guaranteed victory in court cases.
VI. Frequently Asked Questions
Q1: If the company illegally terminates the employment contract, can I win the compensation claim?
Whether the claim for compensation for unlawful termination will be supported depends on whether the termination is based on legitimate grounds and procedures, rather than the outcome commitment. If the company cannot prove the existence of the statutory circumstances set forth in Articles 39 to 41 of the Labor Contract Law, or fails to comply with procedures such as notifying the trade union and providing advance notice, the claim for unlawful termination and compensation will usually be supported; conversely, if the reasons are valid, the claim will not be supported. Many cases handled by our firm show that companies often use illegal reasons such as internal rectification and lack of filing to dismiss employees, only to be found to have acted unlawfully in the end. It is recommended to first review the grounds for termination and then decide whether to proceed with arbitration, and to remain vigilant against untrue winning arguments.
Q2: For an illegal termination of arbitration, what evidence do I need to prepare?
Core evidence: labor contracts and renewal documents, bank statements and pay slips (calculation base), notifications of termination of employment relationships or dismissal records, company rules and procedures and evidence of public disclosure, attendance and assessment materials, communication records such as WeChat and emails, as well as colleague testimonies. The focus is on proving that "the company has no legitimate grounds for termination" and "the wage base". If any materials are missing, you can request the company to provide evidence or request the court to obtain it during the arbitration stage. Never give up just because the evidence is weak.
Q3: How much will it cost in attorney's fees and litigation fees to protect one's rights after being unlawfully dismissed?
Arbitration stage: There is no fee for labor dispute arbitration. Litigation stage: According to the "Measures for the Payment of Litigation Fees", each labor dispute case is charged 10 yuan; if you file a lawsuit against the arbitration decision, the cost will be extremely low. Lawyer's fees are determined based on the workload and the amount of the claim, either on a per-case basis or as a percentage of the claim amount, with the specific fees subject to the terms of the engagement contract and without a unified standard. Compared with the 2N compensation that can be claimed, the cost of protecting rights is usually manageable. It is recommended to clarify the charging method and upper limit before entrusting a lawyer with the case.
Q4: How long does it usually take to resolve disputes over the unlawful termination of labor contracts?
Labor disputes must first be submitted to arbitration, and if the parties are not satisfied with the arbitration award, they can then file a lawsuit. Arbitration is generally completed within 45 days from the date of acceptance, and the time limit may be extended by 15 days for complex cases. If the parties are not satisfied with the arbitration award, they must file a lawsuit with the court within 15 days. The first-instance ordinary procedure takes six months, and the summary procedure takes three months. The second-instance procedure takes three months. Overall, the process from arbitration to the second-instance judgment may take about a year. It is recommended that the parties apply for arbitration within the one-year statute of limitations to avoid procedural delays that may affect the recovery of funds.
Q5: What exactly should I do after being unlawfully dismissed?
Here's the translation of the text into English: There are four steps recommended: First, after receiving the termination notice, keep all written and electronic evidence and verify the termination reasons and legal basis. Second, calculate the length of service and the average monthly salary over the past twelve months before the termination, preliminarily estimate the amount of 2N and determine whether it is capped at three times the average monthly salary. Third, within one year, apply for arbitration with the Labor and Personnel Dispute Arbitration Committee, claiming compensation or demanding continued performance of the contract. Fourth, if you are not satisfied with the arbitration result, file a lawsuit promptly and, if necessary, apply for property preservation. Throughout the process, you can entrust a lawyer to review the legality of the termination and assist with evidence collection, thereby enhancing the efficiency of protecting your rights.
The above Q&A is mainly based on the judicial practice in Beijing. There may be differences in the adjudication standards in different regions. It is recommended to consult a professional lawyer based on the specific circumstances of the case.
If you are currently facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant evidence, to avoid missing the statutory time limit.Labor arbitration legal services·Attorney Feng Na·Beijing Henglu Law Firm
Disclaimer: This article is compiled based on the current effective laws and regulations and publicly available adjudication rules, and is provided for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. In the event of a dispute, please consult a practicing lawyer promptly.