Legal Information

Firm news, insights on new laws, and frequently asked questions.

24 2026-10

Who should bear the losses caused by the suspension of construction at the construction site?

The responsibility for the losses caused by the suspension of construction at the construction site depends on the cause: If the employer fails to provide the site and funds as agreed, resulting in the suspension of construction, the employer shall compensate the contractor for the losses; if the suspension of construction is caused by the contractor's own reasons, the contractor shall bear the re...

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24 2026-10

If an employee resigns voluntarily, are they entitled to compensation?

Generally, employees who resign voluntarily will not receive compensation. However, according to Article 38 of the Labor Contract Law, if the employer is forced to terminate the contract due to statutory faults such as unpaid wages or failure to pay social insurance, the employee can claim economic compensation. It is important to keep evidence of the reasons for the termination.

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24 2026-10

Can I get compensation if the contract is terminated by mutual consent?

Upon mutual consent to terminate the labor contract, the employee is entitled to compensation in accordance with the law, provided that the employer initiates the termination and pays the economic compensation. The compensation shall be calculated based on the employee's length of service in accordance with Articles 36, 46, and 47 of the Labor Contract Law. However, employees who voluntarily termi...

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24 2026-10

Is there a cap on compensation for high-salaried employees?

There are statutory caps on the economic compensation for high-salaried employees who terminate their labor contracts: if the monthly salary exceeds three times the local average wage, the compensation shall be paid at three times the average wage; if the service period does not exceed 12 years, the compensation shall be calculated based on the average wage and the cap. The employee should first c...

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24 2026-10

Is the compensation for illegal dismissal doubled?

For the illegal termination of the labor contract, according to Article 87 of the Labor Contract Law, the employer shall pay compensation at twice the standard of economic compensation (2N); for the legal termination, only N or no compensation shall be paid, which is not simply double the salary.

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24 2026-10

How much compensation can I get if I've worked for less than half a year?

For those who have worked for less than half a year, the economic compensation shall be half a month's salary; for those who have worked for more than half a year but less than a year, it shall be one month's salary; and for those who have been illegally dismissed, the compensation shall be 2N times their monthly salary. The base amount shall include the average salary of the previous 12 months, i...

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24 2026-10

Does the monthly salary used for compensation include bonuses?

The monthly economic compensation includes monetary income such as bonuses, in accordance with Article 47 of the Labor Contract Law; the average monthly income of the previous 12 months is included in the year-end bonus and performance evaluation. If the unit only calculates it based on the basic salary, it is an underestimation.

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24 2026-10

Is the penalty clause in the household registration agreement valid?

The validity of the penalty for breaching the household registration agreement depends on whether it falls under the statutory service period. According to Article 25 of the Labor Contract Law, except for the service period and non-compete clauses, it is not allowed to stipulate penalties for workers' breach of contract. Therefore, the household registration agreement is likely to be invalid.

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24 2026-10

How should the service period for special training be stipulated?

If the employer provides specialized training and allows the employee to shorten the service period, according to Article 22 of the Labor Contract Law, the penalty for breach of contract shall not exceed the training fee and shall be apportioned according to the unperformed period, which must be based on the specialized training fee.

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24 2026-10

Can the rental deposit be used to offset the arrears in rent?

The deposit and the rent are both monetary debts, and they can be legally offset according to Article 568 of the Civil Code. However, the deposit is often of a guarantee nature, and there should be no dispute about its offsetting unless otherwise stipulated in the contract. It is recommended to keep the relevant documents for future reference.

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24 2026-10

Can I sue the landlord if the deposit is not refunded?

If the landlord fails to return the deposit without a valid reason after the lease expires, the lessee may sue to protect his rights; according to Articles 509 and 577 of the Civil Code, the deposit shall be refunded if there is no unpaid rent or damage. It is recommended to send a notice of reminder and keep the evidence first.

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24 2026-10

Can the agreed-upon consultation fee be reduced if it's too high?

The agreed consulting fee is not necessarily reducible. If it constitutes a manifestly unfair situation or if the service has not been provided, it can be revoked in accordance with Articles 147 to 151 of the Civil Code, or the fee can be reduced in accordance with Article 928. If no agreement can be reached through negotiation, litigation can be initiated.

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