Frequently Asked Questions

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...

Learn more >
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.

Learn more >
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...

Learn more >
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.

Learn more >
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.

Learn more >
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.

Learn more >
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.

Learn more >
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.

Learn more >
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.

Learn more >
24 2026-10

Can I still charge a service fee even if the entrusted matter hasn't been successfully handled?

Whether the attorney can charge fees for unsuccessful assignments depends on the nature of the assignment: if the intermediary fails to facilitate the transaction, he/she cannot request compensation but may claim necessary expenses; for general assignments, the fees are shared according to the degree of handling; and for risk-based legal services, if no results are achieved, the risk fee is usuall...

Learn more >
24 2026-10

How is the remuneration standard for an intermediary contract calculated?

The intermediary's remuneration is based on the premise of facilitating the conclusion of the contract. If there is an agreement, the remuneration shall be determined in accordance with the agreement; if there is no agreement, it shall be determined in accordance with the trade practices. If the intermediary fails to facilitate the conclusion of the contract, he/she shall not request remuneration,...

Learn more >
24 2026-10

What should I do if the client refuses to pay after the service is completed?

If the service is completed but the other party refuses to pay, you can first send a letter to urge payment and fix the delivery evidence. If no agreement can be reached, you can file a civil lawsuit in accordance with Article 579 of the Civil Code to demand payment of the remuneration and overdue interest. Please note that the statute of limitations for civil actions is three years.

Learn more >