Frequently Asked Questions

24 2026-9

When it comes to contract disputes, which is better to choose between arbitration and litigation?

There is an arbitration agreement, so the case can only be arbitrated and the arbitration decision is final. If there is no agreement, the case can go through two levels of litigation. For labor disputes, however, an exception applies: they must first go through arbitration, and the statute of limitations is one year. When signing the contract, it is necessary to clearly stipulate the dispute reso...

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24 2026-9

Do I need to hire a lawyer to handle labor arbitration?

Labor arbitration can be applied for by oneself or entrusted to a lawyer to represent; lawyers play a substantial role in providing evidence, calculating the amount of compensation, and responding to court hearings. The statute of limitations for arbitration is one year, so it is advisable to evaluate and make decisions as soon as possible.

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24 2026-9

How to choose between civil litigation and arbitration?

Arbitration is final and not subject to appeal, while litigation involves two instances and a final ruling; labor disputes must first go through arbitration, with a one-year statute of limitations. This article compares the scope of acceptance, procedures, and costs to help you choose the right path to protect your rights.

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24 2026-9

How should a company respond if an employee files a labor arbitration against them?

Within 10 days of receiving the arbitration application, the respondent shall submit a defense statement. The arbitration shall be concluded within 45 days, which may be extended by 15 days. If the evidence held by the unit is not provided, the unit shall bear the adverse consequences. If the respondent does not agree with the arbitration award, he/she shall file a lawsuit within 15 days.

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24 2026-9

How can enterprises draft legally valid and effective labor contracts?

The employer shall sign a written labor contract with the employee within one month after employment, and all necessary clauses must be included in the contract. If the contract is not signed within the prescribed time limit, the employer shall pay the employee twice the normal wage for up to 11 months, and the contract shall be deemed to be a contract of indefinite duration after one year.

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24 2026-9

Can I apply for arbitration in the event of a contract dispute?

Commerical contract disputes require an effective arbitration clause, and the arbitration decision is final; labor disputes apply the principle of "arbitration precedes litigation", with a one-year statute of limitations and free arbitration. These two types of procedures should not be confused with each other.

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24 2026-9

What are the risks if an employee handbook is illegal?

The employee handbook cannot be used as a basis for dismissal if it has not undergone a democratic process or been made public; in the case of illegal dismissal, the employer must pay compensation equivalent to twice the economic compensation, and the worker may apply for arbitration within one year.

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24 2026-9

What should companies do when it's difficult to collect accounts receivable?

The collection of accounts receivable can be combined with reconciliation letters, lawyer's letters, payment orders, preservation and enforcement; pay attention to the three-year statute of limitations and the two-year enforcement statute of limitations, and the signing of the reconciliation letter can interrupt the statute of limitations.

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