Frequently Asked Questions

24 2026-9

Can performance bonuses be deducted at will?

The performance-based salary may not be deducted at will: any deduction without a system or assessment basis is considered an unlawful deduction; according to the "Interim Regulations on Wage Payment", the monthly deduction shall not exceed 20% of the total salary, and the statute of limitations for seeking legal redress through arbitration is one year.

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24 2026-9

What should female employees do if they are subject to a pay cut during their pregnancy?

It is illegal to reduce a pregnant woman's salary during pregnancy. Article 5 of the "Special Provisions on Labor Protection for Female Workers" prohibits reducing a pregnant woman's salary. Any unilateral salary reduction is invalid and the employer can be required to make up the difference. If the employer refuses to correct the situation, the employee can claim economic compensation and the emp...

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24 2026-9

What materials are needed to prepare for a labor arbitration case?

To apply for labor arbitration, you need to prepare three types of materials: a copy of the application form and the main materials, evidence of the labor relationship, and evidence corresponding to the request. Arbitration is free of charge, with a statute of limitations of one year, and the case must be concluded within 45 days, which can be extended by 15 days. If the employer holds evidence, y...

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24 2026-9

Is it legal for outsourced employees and regular employees to receive different treatment?

True outsourcing does not involve labor relations, and unequal treatment is not necessarily illegal. However, if the outsourcing is actually a form of labor dispatch, it must comply with the principle of "equal pay for equal work" as stipulated in Article 63 of the Labor Contract Law. The dispatch positions must meet the "three characteristics" and not exceed 10% of the total number of employees. ...

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24 2026-9

How can employees reconcile with the arbitration company?

After an employee files for arbitration, the company has three paths to reach a settlement: withdraw the application before the trial; sign and accept the arbitration mediation agreement, which becomes effective and enforceable; assess the risk of losing the case before making an offer, and the compensation for illegal termination is twice the amount of economic compensation (Article 87).

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24 2026-9

If an employee refuses to move to the new office location after the company relocates, will they receive compensation?

If an employee refuses to relocate with the company, are there any circumstances in which they may receive compensation? For relocations across cities, if no agreement can be reached, the employment contract may be terminated in accordance with Article 40 of the Labor Contract Law, with compensation equal to one month's salary for each completed year of service. If the employee is dismissed for ab...

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24 2026-9

When resigning, if I haven't used up all my annual leave, can it be converted into salary?

It can be converted: If the employee has not taken annual leave at the time of resignation, the employer shall pay 300% of the daily wage (including the normal wage) as compensation. The compensation shall be calculated based on the number of calendar days that have passed in that year. If the number of days is less than one full day, no compensation will be paid. The employee should apply for arb...

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24 2026-9

Can the balances in Alipay and WeChat be frozen by the court?

Yes. The balance in Alipay and the WeChat Wallet belong to the debtor's property rights, and the court can freeze and confiscate them through online monitoring; within 30 days after the pre-litigation preservation, the debtor must file a lawsuit. The frozen funds should be reserved for daily necessities, and the debtor can apply for the unfreezing of the funds after fulfilling the obligation.

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24 2026-9

What should I do if I miss the deadline for creditor's declaration?

If you miss the declaration period, you can make a supplementary declaration before the final distribution of the bankruptcy estate, in accordance with Article 56 of the Enterprise Bankruptcy Law. The distribution that has already taken place will not be re-distributed. The review and confirmation expenses shall be borne by the declarant himself. It is necessary to declare as soon as possible to a...

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24 2026-9

Can I still pursue the debt if the debtor has been sentenced to prison?

The sentencing does not exempt civil debts: the sentenced person can be sued as usual and a judgment can be made in absentia. It should be noted that the statute of limitations is three years. As for illegal fund-raising, the recovered funds will be used to repay the debts, and in the event of the debtor's death, the heirs will pay off the debts within the scope of the estate.

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24 2026-9

How can enterprises conduct contract management to prevent bad debts?

Pre-contract credit investigation, keeping records of contract performance, and graded collection of overdue payments can significantly reduce bad debts. This includes agreeing on payment deadlines and penalties, retaining invoice and account statement evidence, promptly pursuing collection and litigation within three years, and applying for property preservation simultaneously for large-scale deb...

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24 2026-9

Do the debts of one spouse have to be repaid by the other spouse?

According to Article 1064 of the Civil Code, joint debts signed by both spouses or used for daily family life are considered joint debts; if the debts exceed the daily needs, the creditor must provide evidence to prove that the debts are used for joint living. The divorce agreement cannot be used to oppose the creditor's claims.

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24 2026-9

Is it legally supported for a child to repay their parent's debts?

The principle of "the son paying off the father's debts" only applies within the scope of inheritance. According to Article 1161 of the Civil Code, the heirs shall pay off the debts within the actual value of the inherited estate, and if they renounce the inheritance, they shall not be liable for the repayment of the debts.

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24 2026-9

Do I need to give my consent if the debt is transferred to someone else?

According to Article 551 of the Civil Code, the transfer of debt must be agreed to by the creditor, and it will not take effect without the creditor's consent. According to Article 552, the debtor will be jointly liable for the debt. The debtor should give a written response promptly upon receiving the notice of transfer.

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