Frequently Asked Questions

28 2026-9

After marriage, if the parents contribute to buying a house, who will own the property in the event of a divorce?

After marriage, if the parents contribute funds to purchase a house and the house is divided upon divorce, the nature of the contribution and its registration will be taken into account: if it is explicitly stipulated that the contribution is only for the children and registered under the name of one of them, it is considered personal property and will not be divided. Otherwise, it will be presume...

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28 2026-9

Is the pre-marital property still considered personal property if it's sold after marriage and then a new house is purchased?

Before marriage, if the house is sold and then purchased again after marriage, the funds can be traced back and are not commingled. If the house is still registered under the original owner's name, it remains personal property. However, if the funds are commingled or the buyer's name is added to the title, the house may be converted into jointly owned property.

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28 2026-9

After the company merger, are the labor contracts still valid?

After the company merger, the original labor contract remains valid and shall be performed by the successor unit. If the termination of the contract is illegal due to failure to register or rectification and withdrawal, the employee can claim for the continuation of the contract or compensation.

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28 2026-9

Does the non-compete agreement still count if no compensation is provided?

The non-compete agreement shall be compensated; if no compensation is agreed upon, it shall be paid at 30% of the employee's salary in the 12 months prior to his/her departure. If the employer fails to pay the compensation within three months, the employee may terminate the agreement, and the term of the agreement shall not exceed two years.

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28 2026-9

How are retired re-employed staff compensated if they get injured?

Most retirees who are rehired establish a labor relationship, and in the event of an injury, the compensation shall be apportioned according to fault in accordance with Article 1192 of the Civil Code; those who have not enjoyed pension benefits and meet the requirements of a labor relationship may be recognized as work-related injuries.

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28 2026-9

Do I need to pay personal income tax on the severance pay when I resign from my job?

The severance pay for leaving a job is exempt from personal income tax if it is within three times the average local salary of workers in the previous year, and the excess part shall be subject to the comprehensive income tax rate table separately; the consultation on the tax calculation method shall be consistent with the illegal termination of the employment contract.

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28 2026-9

Can I apply for arbitration if the company doesn't pay the provident fund?

Simply making up for the arrears in housing provident fund does not fall within the scope of arbitration. Instead, the employee should file a complaint with the management center in accordance with the "Regulations on the Administration of Housing Provident Fund" to order the employer to make up for the arrears. For the case of unpaid social insurance leading to the termination of the employment c...

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28 2026-9

Is it legal to deduct three days' salary for one day of absenteeism?

On the day of absenteeism, the employer does not have to pay wages, but deducting an additional two days is considered illegal deduction, which violates Article 15 of the "Interim Regulations on Wage Payment" and Article 50 of the "Labor Law". The employee can file a complaint or request arbitration to recover the deducted wages.

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28 2026-9

How to sue a company for not repaying a loan to an individual?

If the company refuses to repay the money borrowed from an individual, the individual can file a lawsuit against the company at the court in the company's registered address or the place of contract performance, based on the contract and the transfer receipt. If the interest rate does not exceed four times the LPR, and the shareholders fail to make the actual payment or withdraw the funds, they ma...

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28 2026-9

What should I do if the guarantor doesn't repay the loan?

If the borrower fails to repay the loan on time or the guarantor refuses to assume responsibility, the creditor may sue both the debtor and the guarantor together; in the case of joint and several guarantee, the creditor may directly pursue recovery. It is essential not to let the guarantee lapse during the six-month guarantee period, and the creditor should protect his rights in accordance with A...

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