[Direct answer]In the Beijing area, if an employer terminates or rescinds a labor contract with an employee, the employer shall pay the employee's wages in full upon the termination or rescission of the contract. The practice of "postponing the payment of wages until the next month and paying them together with the regular payday" has no legal basis and constitutes a violation of the employee's right to receive wages on time. According to Article 9 of the Interim Regulations on Wage Payment, when the labor relationship between the employer and the employee is legally terminated or rescinded, the employer shall pay the employee's wages in full upon the termination or rescission of the labor contract. If the employer refuses to pay, in addition to making up the principal, the labor administrative department may order the employer to pay the wages within a specified period. If the employer fails to pay within the time limit, the employer shall pay compensation of not less than 50% but not more than 100% of the amount due (Article 85 of the Labor Contract Law). The correct procedure is: first issue a written notice, then file a complaint with the supervision authority, and finally file a claim through arbitration.
I. Problem background and typical scenarios
At the end of the month, the HR simply said, "The salary will be paid together with the rest of the staff on the 15th of next month according to the company's system." The employee felt something was wrong, but was afraid of making a fuss and causing an awkward situation. The dispute over the timing of the severance settlement is a clash between the "payroll cycle convention" and the "obligation at the time of termination". Most companies misapply this convention inappropriately.
II. Key points of dispute
First, the boundaries of the rule of "paying in full upon termination". Second, whether the company's payday practices can be used to counter this rule. Third, the deposits, deductions, and settlement lists. Fourth, the choice of path for complaints and arbitration.
III. Professional analysis by Henglue Law Firm
The first layer: Where do the rules come from? During employment, wages are paid monthly, at least once a month, which is the payment cycle of a normal labor relationship. However, once the labor relationship is terminated or dissolved, the wages change from "periodic labor compensation" to "claims that should be settled immediately" — Article 9 of the "Interim Regulations on Wage Payment" establishes the obligation of a lump-sum payment at the point of termination. The same principle is implemented in Beijing. Unless there are legal agreements between the parties that do not harm the workers' rights, the unit's unilateral delay of the severance pay to the next payday does not constitute a valid agreement. The second layer: Why does the payday system not hold water? The payday system regulates the payment rhythm during employment, not the reverse to counter the settlement obligation at the point of termination. To put it another way, sailors are paid monthly while on board, but those who disembark are settled immediately — including "adding laid-off employees to the next payroll list" is essentially occupying the workers' funds without compensation. Similarly, "withholding one month's salary to prevent job-hopping" and "deducting clothing fees and training fees upon resignation" often lack legal basis in most cases. The law explicitly prohibits withholding workers' property under any pretext. Compensation for breach of contract is limited to two statutory situations: service period and non-compete clauses. The third layer: The settlement list must be comprehensive. What should be settled at the point of resignation includes wages (including overtime pay and performance bonuses), three-fold compensation for unused annual leave, agreed-upon bonuses, and statutory severance pay — each of which has an independent basis for claim. If the unit only pays the "base salary" and fails to settle other items, the worker can still assert their rights. At the same time, the unit is required to issue a resignation certificate and transfer the worker's personnel file and social insurance within 15 days. If the resignation certificate is delayed and affects the worker's reemployment, compensation for the losses can also be claimed. The fourth layer: The order and combination of remedies: First, send a written notice with evidence (via email or EMS) and give the unit a clear deadline of 3-5 working days. If payment is not made after the deadline, file a complaint with the labor supervision authority at the employment location. If the unit still fails to pay after the administrative authority's order, the conditions for additional compensation are met. For large amounts and disputes involving overtime pay and severance pay, directly apply for arbitration within one year — complaints are quick and light, while arbitration is comprehensive and thorough. The two are not conflicting. It's common to first use supervision to put pressure on the unit and then rely on arbitration as a backup.
IV. Practical suggestions and legal basis
The first step is to check the attendance, overtime hours, and unused annual leave days on the day of resignation and take photos as evidence; the second step is to send a written notice demanding settlement within a specified time limit; the third step is to file a complaint or arbitration if the deadline is exceeded, claiming the principal and additional compensation; the fourth step is to simultaneously request a resignation certificate and follow up on the transfer of social insurance files. The main legal basis: Article 9 of the "Interim Regulations on Wage Payment", Articles 50, 85, and 90 of the "Labor Contract Law of the People's Republic of China", and relevant regulations on wage payment in various regions; the specific application shall be subject to the currently effective regulations.
5. Henglu Law Firm's Advice
Three key points about severance pay: It is a legal obligation to pay in full upon termination, and company practices cannot override legal rules; withholding deposits is often illegal, and settlement lists must include all overtime pay and annual leave compensation; first send a notice, then file a complaint, and finally seek arbitration. To recover additional compensation, you need to apply for an order of enforcement through legal procedures. For issues related to severance pay settlements and wage arrears, you can seek legal help through the following channels:Labor arbitration and work-related injury compensationThe service provides a comprehensive solution, which includes the collection of paymentsCreditor's rights and debts, and enforcementFor reference, you can check the compliance review of employment practices in the relevant sectionBusiness and contract disputes in enterprisesFor any questions regarding difficult situations, please feel free to consult us.Special servicesTeam.
VI. Frequently Asked Questions
Q1: When is the latest date by which the severance pay must be paid?
When the labor contract is terminated or rescinded, the employer shall pay the employee's salary in full at once. If the employer delays the payment until the next payday, it constitutes a breach of contract, and the employee can file a complaint or initiate arbitration against the employer.
Q2: Is it reasonable for the company to say "all employees will receive their salaries on the 15th of every month"?
This practice only applies to current employees; the settlement obligations of departing employees shall be fulfilled at the point of termination, and the unified payday cannot be used as an excuse for delay.
Q3: Can the employer deduct one month's salary as a deposit?
No. It's illegal to withhold wages or property under any pretext. The only exceptions are the penalty for breaching the service period and the non-compete clause.
Q4: How can I get the additional compensation?
First, the labor administrative department shall order the employer to make the payment within a specified time limit. If the employer still fails to make the payment after the time limit, an additional payment of not less than 50% but not more than 100% of the amount due shall be imposed on the employer.
Q5: How to choose between a complaint and arbitration?
Complaints about unpaid wages can be handled faster; for cases involving multiple items such as overtime pay, compensation, and the conversion of annual leave, direct arbitration is more comprehensive. The two methods can be used in combination.
The above content is based on the compilation of judicial practices in the Beijing area. The facts of individual cases and the jurisdiction of the courts may differ, which may affect the conclusions. Welcome to consult Henglue Law Firm for specific cases.
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·Beijing Henglue Law Firm
Disclaimer: This article is compiled based on the current effective laws and regulations and open 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. In case of disputes, please consult a practicing lawyer in time.