[Direct answer]In the Beijing area, this is considered a legal presumption: Article 14 Paragraph 3 of the Labor Contract Law of the People's Republic of China (implemented on January 1, 2008) stipulates that if an employer fails to conclude a written labor contract within one year from the date of employment, it shall be deemed that the employer and the employee have concluded an indefinite-term labor contract. There are three supporting effects: the double salary shall be calculated from the day after the full month to the day before the full year, with a cap of 11 months; after that, the company can no longer dispose of the relationship at will on the grounds of "non-signature of a contract"; and the termination must return to the statutory framework of an indefinite-term contract, with the risk of compensation for arbitrary dismissal significantly increased.
1. Problem background and typical scenarios
The employee worked at the company for three years without signing a single contract. The company thought they had gotten a free ride with flexible employment, while the employee believed they would only receive double pay. The statutory rule of one-year validity redefined the relationship between the two parties: for unsigned contracts, the law will sign them for you, and the signed version will be the most binding one.
II. Key points of contention
First, the timing and proof of "deeming the contract as concluded" — the confirmation on the first anniversary of the contract. Second, how to terminate a fictitiously created non-fixed-term contract. Third, whether it is valid for the company to sign a fixed-term contract after one year. Fourth, the connection between the cap of eleven months for double pay and the statute of limitations.
III. Professional analysis by Henglue Law Firm
Here's the translation of the Chinese text into English, with detailed explanations: The implementation of the rules involves four key actions. 1. **Confirm the effective date of the contract**: The contract is deemed to have been established on the date the employee completes one year of service. The basis for determining this remains the evidence of the employment relationship (attendance records, payroll records, and management records). The more solid the evidence of the employee's start date, the stronger the contract's validity. 2. **Understand the enhanced protection**: The termination of a non-fixed-term contract is strictly governed by the Labor Contract Law. The employer cannot terminate the contract by claiming that it "expired and was not renewed" (since there is no fixed expiration date), and unilateral termination must comply with the statutory circumstances specified in Articles 39, 40, and 41. Violations of these provisions are subject to Article 48: the employee may demand continued performance or claim double compensation based on the economic compensation standard. In the case of the 12-person layoff handled by Henglue Law Firm, the company unilaterally terminated the contracts on the grounds of internal restructuring. All three-level court proceedings ruled the terminations illegal and ordered continued performance, reflecting the high threshold for termination rights under the non-fixed-term framework. 3. **Be vigilant against retroactive amendments**: After one year, if the employer proposes to sign a one-year fixed-term contract, the employee has the right to refuse. The existing non-fixed-term contract remains valid, and signing a lower-level fixed-term contract does not impose unfavorable obligations on the employee. Any amendment to the contract must be agreed upon by both parties. 4. **Calculate compensation accurately**: The double wage cap ends at 11 months after the one-year mark, but the difference between the second month after the one-year mark and the day before the one-year anniversary can still be claimed. There are practical precedents regarding the one-year arbitration statute of limitations, which starts from the date of termination or resignation. Applying for arbitration as soon as possible ensures the most secure outcome. **Legal tips for employers**: Non-fixed-term contracts are not a burden but a default outcome - signing the contract within one month and renewing it on time is far more cost-effective than double compensation for illegal termination. Treating employment procedures as costs often results in double payments in the end. This case was handled by Beijing Henglue Law Firm.Feng NaAttorney (Practice Certificate No.: 11101202211562923, subject to the certificate issued by the judicial administrative organ) acting as an agent.
IV. Practical Suggestions and Legal Basis
Action List: 1. First, organize the employment start date and evidence of employment to determine the presumed date of completing one year of service. 2. Second, claim the double wage difference (up to eleven months) and file for arbitration within the one-year statute of limitations. 3. Third, in the event of dismissal, choose between continued performance of the contract or double compensation. 4. Fourth, the company shall immediately sign fixed-term contracts with employees who have not signed them within one year and improve their record-keeping systems. Main legal basis: Articles 14, 82, 48, and 87 of the Labor Contract Law of the People's Republic of China (effective January 1, 2008); Article 7 of the Implementing Regulations of the Labor Contract Law of the People's Republic of China (effective September 18, 2008); Specific applications shall be subject to the currently effective regulations.
5. Henglue Law Firm's Advice
Three reminders: Being regarded as a non-fixed-term contract does not mean a "iron rice bowl" — there are still paths to termination in the event of serious violations of disciplinary rules or statutory layoffs, so workers should not abuse the rules to "lie flat"; if the labor relationship continues after one year, the claim for double pay will expire month by month as time passes, and the statute of limitations will determine how much can be recovered; in disputes over the termination of non-fixed-term contracts, the strategy of choosing between "continued performance" and "double compensation" should be evaluated in light of the survival of the position, as making the wrong choice will double the cost. Those involved in disputes over non-fixed-term contracts can seek help through legal channels.Labor arbitration and work-related injury compensationFor obtaining an overall solution for the service, those involved in the calculation of compensation for illegal termination of employment can refer to the termination section in the same column. Those involved in the settlement of double wages and unpaid wages can combine the relevant information from different sections.Creditor's rights and debts, and enforcementFor plate-related matters, those who need legal representation for group cases can seek advice from usSpecial servicesFor team-related matters or difficult cases, please contact us.Special services.
VI. Frequently Asked Questions
Q1: After being deemed as having no fixed term, can the company still be terminated at the expiration date?
No. The contract does not have an expiration date, so the company cannot apply the termination path of "the contract expires and is not renewed". Unilateral termination must comply with legal circumstances, otherwise it will constitute an illegal termination.
Q2: How much can I still claim in double pay?
From the day after the employee has worked for one month to the day before the expiration of one year, the maximum period is eleven months; after one year, the employer will no longer pay double wages. The employee should claim the wage difference as soon as possible within the statute of limitations.
Q3: The company is now asking us to sign a one-year contract. Should we sign it?
The company may refuse to sign the contract and maintain the proposed indefinite-term relationship; the company shall not lower the contract terms or retaliate by dismissing the employee due to the refusal to sign the contract, and any amendment to the contract shall require the consent of both parties.
Q4: How much do I have to pay for unlawful termination of the contract?
If the worker does not request to continue the performance of the contract or the contract cannot be performed, the employer shall pay compensation at twice the standard of economic compensation (commonly known as "double N"); if the worker requests to continue the performance of the contract and the contract can be performed, the employer shall be ordered to restore the worker's position.
Q5: What should be included in the arbitration request?
Confirm the start and end dates of employment and specify the periods and bases for the proposed establishment of a non-fixed-term contract, the payment of double wage compensation, compensation for illegal termination, or continued performance. Submit a comprehensive claim for settlement in a single arbitration proceeding.
This article is written based on the common judicial interpretation in the Beijing area. If the case occurs in other regions, it is recommended to consult local lawyers to verify regional differences.
If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the evidence materials, so as to avoid missing the statutory time limit. →Labor arbitration legal services·Beijing Henglu Law Firm
Disclaimer: This article is compiled based on current laws and regulations and publicly available 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 the event of a dispute, please consult a practicing lawyer in a timely manner.