[Direct answer]In the Beijing area, when facing labor disputes, the value of legal consultants lies in "preventive establishment, risk control during the dispute, and compliance response after the dispute". Before the dispute, they can set up a legal attendance, salary, and dismissal system; during the dispute, they can guide evidence collection, evaluate the legality of the dismissal, and act as an agent in negotiation and arbitration; after the dispute, they can review and plug the loopholes. According to Article 39 of the Labor Contract Law of the People's Republic of China, the employer can dismiss the employee under circumstances such as serious disciplinary violations without having to pay economic compensation, but the employer must provide sufficient evidence. It is recommended that enterprises prioritize employment compliance rather than only taking action when disputes break out. For more details, please refer to the following link:Intellectual property protection and corporate legal services.

I. Problem background and typical scenarios

Labor disputes are one of the most frequent legal risks for enterprises. Typical scenarios include: arbitrary dismissal during the probationary period leading to lawsuits for illegal termination; disputes arising from last-place elimination and incompetent job transfer; payment of double wages for failing to sign a written labor contract; disputes over overtime pay and performance evaluations; and non-compliance with mass layoff procedures. Many enterprises mistakenly believe that "the boss has the final say" and dismiss employees based on verbal notifications, only to end up paying economic compensation and double wages as compensation. Some enterprises also have vague employment rules and lack attendance records, making it impossible to provide evidence during arbitration. For confidentiality and non-compete clauses involving employment and intellectual property, they can be combined with other legal provisions to form a comprehensive protection system.Intellectual property protection and corporate legal servicesCoordinate, or refer toBusiness and contract dispute services for enterprisesHandle disputes over the departure of executives.

II. Key points of contention

There are three main disputes in labor disputes. Firstly, the legality of the termination: whether it is a termination for disciplinary reasons, termination due to incompetence, or termination due to objective changes in circumstances. The corresponding evidentiary standards are different, and employers often lose the case due to insufficient evidence. Secondly, salary and working hours: whether the basis for calculating overtime pay and the deduction of performance bonuses are legal. These issues often arise due to unclear regulations. Thirdly, contracts and social insurance: the legal consequences of not signing contracts or failing to pay social insurance, and the reasonableness of non-compete clauses and breach of contract penalties. For cases involving work-related injury identification, reference can be made to the relevant provisions.Labor arbitration and work-related injury compensation servicesClarify the boundaries between work-related injuries and civil compensation, or combine the two.Special services and other case servicesHandle collective labor disputes.

III. Professional analysis by Henglue Law Firm

Based on practical observations of labor employment in service enterprises, most labor-related cases result in unfavorable outcomes for the employer due to the "lack of both systems and evidence". According to Article 39 (termination for serious disciplinary violations), Article 40 (termination due to incompetence or changes in objective circumstances requires advance notice or payment of notice compensation), Article 47 (calculation of economic compensation), and Article 82 (double wages for non-signed contracts) of the Labor Contract Law (amended on December 28, 2012), each termination decision by the employer must be supported by corresponding system-based evidence and factual proof. Henglue Lawyers typically recommend the following approach: First, establish rules and regulations that have undergone democratic procedures and been publicly announced; second, maintain comprehensive attendance and disciplinary records; and third, ensure that the termination decision is based on clear facts, well-defined legal grounds, and compliant procedures. For technology and cultural and creative enterprises, special attention should also be paid to issues such as social insurance base amounts and off-site employment. In cases involving criminal risks, follow-up legal services can be provided accordingly.Criminal defense and criminal case filing servicesPrevent criminal responsibility for malicious non-payment of wages.

IV. Practical suggestions and legal basis

The legal basis for this is Article 39 to Article 47 of the Labor Contract Law (amended on December 28, 2012) regarding the provisions on termination, economic compensation, and double wages; the Arbitration Law of the People's Republic of China regarding the application for arbitration and the provision of evidence; and the Social Insurance Law of the People's Republic of China regarding the mandatory requirements for social insurance payments. Practical suggestions: Establish rules and regulations and an attendance system that have been democratically approved and publicly announced; complete factual investigations and evidence fixation before termination; terminate employees who are unqualified for the position only after providing them with training or transferring them to another position; lay off employees in accordance with statutory circumstances and procedures; and pay social insurance in full in accordance with the law. For issues involving non-compete clauses and confidentiality, refer to the relevant provisions.Intellectual property protection and corporate legal servicesDesign the terms and preserve the chain of evidence.

5. Henglu Law Firm's Advice

Labor disputes lie in "prevention". Three reminders: First, establish systems first—attendance, compensation, rewards and punishments, and termination conditions must all be written into legally established and publicly announced rules and regulations, which are the foundation for winning the case; Second, keep evidence—there must be records of violations of discipline, and notifications and deliveries must be provided for terminations. Oral management is almost ineffective in arbitration; Third, comply with the law—not signing contracts, not paying social insurance, and arbitrarily dismissing employees may save money in the short term, but in the end, they often have to pay even more. Enterprises should embed legal consultants into the entire employment process, rather than only seeking help when problems arise. If they need to establish a system, they can seek assistance from relevant professionals or institutions.Special services and other case servicesCarry out labor compliance physical examinations and rectifications.

VI. Frequently Asked Questions

Q1: The company is being sued by an employee through arbitration. Can a legal consultant help us win the case?

Lawyers cannot guarantee the outcome, but they can significantly increase the probability of winning a case according to the law. Whether a company can avoid liability or mitigate damages depends on whether the termination is legal, whether the system is effectively publicized, and whether the evidence is sufficient. According to Article 39 of the Labor Contract Law, if an employee commits a serious violation of discipline and the company provides solid evidence, the termination does not require compensation; otherwise, if the system is lacking or the procedure is illegal, it is easy to lose the case. The role of a consultant is to solidify the evidence chain in advance, apply the law accurately, and effectively defend against claims in arbitration. It is recommended that lawyers evaluate the chances of winning or losing a case as soon as a dispute arises, rather than seeking help only when the trial is about to begin. It is most difficult to make up for evidence at the last minute.

Q2: In labor disputes, what evidence does the company need to prepare?

The core evidence includes: written labor contracts and signing records, rules and regulations formulated and publicized through democratic procedures and employee confirmation receipts, attendance records and schedules, pay slips and bank statements, materials of disciplinary violations (surveillance, emails, notifications, conversation records), termination notices and delivery certificates, social insurance and personal income tax payment records, as well as employee hiring and resignation procedures. The evidence organization revolves around the four rings of "effective system - clear facts - compliant procedures - accurate calculation". If there are missing materials, they should be supplemented as soon as possible, for example, by supplementing attendance with notarization or witnesses, to avoid the adverse consequences of failing to provide evidence in arbitration.

Q3: How much does the legal consultant charge for handling labor disputes in the company?

The fee structure is flexible: daily consultations often include basic advice and contract review; single arbitration/litigation cases are usually charged on a per-case or per-target basis (such as the claimed compensation amount), which is negotiated and agreed upon in writing between the law firm and the client, with no unified standard. Cases involving groups, cross-regional disputes, or high-level executives typically incur higher fees. According to relevant regulations, the fees charged for labor dispute representation should be transparent. It is recommended that enterprises clearly specify the response and fee calculation for labor-related matters in the consultation contract, request a detailed quote before entrusting a single case, and compare the depth of services rather than just the price, to avoid low-price providers only providing formal defenses and missing out on substantive defenses.

Q4: How long does it take for a company's labor dispute to be resolved through arbitration?

Labor disputes are generally subject to arbitration first. After the arbitration committee accepts the case, it shall conclude the arbitration within the statutory time limit (usually within 45 days from the date of acceptance, and the time limit may be extended to 60 days for complex cases). If the party is not satisfied with the arbitration award and files a lawsuit, the first-instance ordinary procedure takes six months, and the summary procedure takes three months; the second-instance procedure takes three months. If the case enters the enforcement stage, it will be handled separately. For collective disputes or those involving social insurance administration, the time period will be longer. Overall, it often takes more than half a year to one year from arbitration to final review for a single case. Enterprises should involve lawyers as early as possible to fix evidence and use consultation and mediation to resolve disputes at the front end, so as to avoid the cycle of the procedure being prolonged, increasing costs and damaging their reputation.

Q5: How can companies systematically resolve labor disputes through the legal advisor system?

Four steps: First, pre-establishment. Let consultants help you draft rules and regulations, contract templates, and attendance systems that have undergone democratic procedures and been publicly announced, to prevent risks at the source; Second, risk control during the process. When signs of disputes emerge, let lawyers guide you in collecting evidence, assessing the legality of the situation, and avoiding illegal operations; Third, post-response. Let consultants handle negotiations, mediation, arbitration, and litigation on behalf of the company to assert its rights according to the law; Fourth, review and rectify. After each dispute, revise the system and process. Integrating legal consultants into the entire employment cycle is more cost-effective and more stable for business operations than just taking action after problems arise.

The above content is based on the judicial practice in the Beijing area. The facts of individual cases and the jurisdiction of the court may affect the conclusions. Welcome to consult Henglue Lawyers for specific situations.

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. →Intellectual property protection legal services·Beijing Henglue Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and public adjudication rules, and is 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. If you encounter disputes, please consult a practicing lawyer in time.