[Direct answer]Yes. If the company fails to pay the worker's wages in full and on time, the worker may terminate the labor contract in accordance with Article 38 of the Labor Contract Law of the People's Republic of China, and claim economic compensation in accordance with Articles 46 and 47 (implemented on January 1, 2008) - one month's salary for each completed year, six months or more but less than one year shall be counted as one year, and less than six months shall be compensated with half a month's salary. Operational steps: First, send a written notice of forced termination (stating the reason for unpaid wages) to the employer, and then apply for arbitration; the amount of unpaid wages and evidence of the worker's length of service are the two main supporting documents. In similar cases handled by Henglue Law Firm, a worker was forced to terminate the contract due to the company's two-month wage arrears, and was awarded more than 290,000 yuan in economic compensation.

1. Problem background and typical scenarios

The company hasn't been able to pay salaries for two or three consecutive months, and employees are torn: if they resign, will it be a waste of effort? Passively waiting for the company to lay off employees seems like a distant prospect. The forced termination system is specifically designed for this situation — it disguises the form of "active resignation" as the essence of "company breach of contract," and provides full compensation.

II. Key points of contention

First, the form and content of the notice of forced termination of employment - if the reason for termination is written incorrectly, the entire notice may be rendered invalid. Second, the determination of the fact of unpaid wages - review of defenses such as operational difficulties, delayed performance evaluations, and shareholder profit-sharing arrangements. Third, the determination of the base amount for economic compensation - whether it includes base salary plus performance bonuses or only base salary. Fourth, the precondition issue of whether an employment relationship exists.

III. Professional analysis by Henglue Lawyers

The two cases from different perspectives shed light on both sides of the rules. On one side, the worker prevailed: Zhang, an employee of a telecom company with a non-fixed-term labor contract and a monthly basic salary of 7,917 yuan plus variable performance bonuses, was owed wages for November and December 2021 that were not paid until the end of January 2022. Zhang sent a notice of forced resignation on January 15, 2022, citing the company's failure to pay wages on time and in full as the reason for termination. The arbitration court and the first- and second-instance courts all supported his request for economic compensation. The first-instance court ordered the company to pay 295,207.08 yuan in termination compensation and 40,347.66 yuan in unpaid annual leave wages, and the second-instance court upheld the judgment. There are two key takeaways from this case: the continuous calculation of seniority across affiliated companies (with no changes in work location or overlapping social insurance payments since 2009, and overlapping legal representatives), and the inclusion of performance bonuses in the calculation base despite the company's failure to provide evidence of consultation during the job transfer. On the other side, there's the issue of preliminary review. In a case handled by Henglue Law Firm involving a shareholder's labor relations, a technical director sent a notice of forced termination demanding 2,120,000 yuan in unpaid wages and compensation. The lawyer defended against the claim by emphasizing the lack of personal dependency and economic subordination—the parties signed a cooperation agreement, the employee held 20% virtual equity, worked independently, and had social insurance registered elsewhere. The court ruled that no labor relationship existed, and both the wage and compensation claims were dismissed due to lack of legal basis. The combined lessons from these two cases are: to obtain compensation for forced termination, first, the worker must establish a labor relationship (employee status with management and salary payments); second, there must be evidence of unpaid wages; and third, the procedure must be correct (written notice stating the reason for unpaid wages). If any of these conditions are not met, the claim may be dismissed. This case was handled by Beijing Henglue Law Firm.Xue SuhuaThe lawyer (practice license number: 11101201211769926, subject to the certificate issued by the judicial administrative organ) acts as the agent.

IV. Practical suggestions and legal basis

Action List: 1. First step: Preserve evidence of unpaid wages (such as interrupted payroll records, chat records demanding payment, and pay slips). 2. Second step: Deliver the notice of forced termination via EMS or by hand, with the reason stated as failure to pay labor compensation in full and on time. 3. Third step: File an arbitration claim within one year after leaving the job, listing unpaid wages, economic compensation, and unpaid annual leave wages. 4. Fourth step: Apply for forced execution if the company refuses to comply. Main legal basis: - Article 38, Article 46, Article 47, and Article 85 of the Labor Contract Law of the People's Republic of China (with additional compensation for late payment), effective January 1, 2008; - Article 27 of the Labor Dispute Mediation and Arbitration Law of the People's Republic of China (effective May 1, 2008); - Specific application shall follow the currently effective regulations.

5. Henglue Law Firm's Reminder

Three reminders: Never write "personal reasons" or "family reasons" in your resignation letter. If the reason stated in the letter does not match the actual unpaid salary, your request for compensation will likely be denied. If you file a complaint about unpaid salary immediately after the incident, it will leave a clear record, rather than waiting until a year later to initiate arbitration. When claiming compensation, use the standard calculation based on the total salary (including performance bonuses). If the company insists on calculating it based solely on the basic salary, require them to provide the legal basis and negotiation records. For cases involving unpaid salary and economic compensation, you can file a lawsuit through legal channels.Labor arbitration and work-related injury compensationFor services related to the continuous calculation of working years and the identification of related entities, please refer to the labor relations section in the same column. For services related to the enforcement and preservation of unpaid wages, please consult the corresponding section.Creditor's rights and debts, and enforcementFor consultation on plate-related matters involving intertwined cooperation relationships and equity disputes, please feel free to contact us.Business and contract disputes in enterprisesFor team members, please contact us for difficult casesSpecial services.

VI. Frequently Asked Questions

Q1: Can I get compensation even if I'm owed a few days' wages?

In practice, occasional, minor, and promptly rectified defaults may not necessarily be considered as "failing to pay in full and on time". However, cases of persistent and significantly overdue unpaid wages are more likely to be supported. The determination of such cases should take into account the duration and amount of the arrears. It is recommended to seek legal advice before taking any action.

Q2: How is the economic compensation calculated?

The compensation shall be calculated based on the average monthly salary earned in the twelve months prior to the termination of the employment contract. For each completed year of service, one month's salary shall be paid as compensation; for service periods exceeding six months but less than one year, one month's salary shall be paid; for service periods less than six months, half a month's salary shall be paid. However, the monthly salary shall not exceed three times the local average social wage, and the maximum compensation period shall not exceed twelve years.

Q3: Is it necessary to give 30 days' notice before being forced to resign?

No, it's not necessary. If the employment contract is terminated in accordance with Article 38 of the Labor Contract Law, there's no need to give 30 days' notice. The termination will take effect once the notice is delivered; however, the notice must be in writing and specify statutory reasons such as unpaid wages.

Q4: The company said it's having operational difficulties. Can they be exempt from liability?

No. Financial difficulties are not a legal reason for refusing to pay wages. If it is necessary to delay the payment, the employer should consult with the trade union or the workers and specify a clear time limit. Delaying the payment without consultation still constitutes failure to pay wages in full and on time.

Q5: How long will it take to get the money from the arbitration?

Arbitration cases are generally concluded within 45 days, and the time limit can be extended by 15 days in complex cases. After the arbitral award takes effect, if the company fails to perform its obligations, the applicant can apply for compulsory enforcement. If the clues to the debtor's assets are sufficient, the recovery of the debt will be faster. The overall process will vary depending on the specific case.

The above Q&A is mainly based on the judicial practice in Beijing. There may be differences in the adjudication opinions 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 materials, 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 promptly.