Frequently Asked Questions

24 2026-9

How are the severance pay and compensation calculated for employees who are dismissed?

The severance pay is calculated as one month's salary for each completed year of service, and half a month's salary for less than six months of service. The compensation for unlawful termination is 2N. Claims must be filed for arbitration within one year after the termination, and the monthly salary shall be calculated based on the average of the last 12 months before the termination.

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24 2026-9

How should a company respond if it is subject to labor arbitration?

The company should submit a defense statement within 10 days after receiving the copy of the arbitration notice. The arbitration process is generally completed within 45 days, and the employer bears the burden of proof for issues related to dismissal and wages.

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24 2026-9

How to define the scope of the non-compete agreement?

The non-compete clause is limited to senior executives, highly skilled personnel, and personnel involved in confidential matters, with a maximum duration of 2 years. If the geographical scope of the agreement is too broad, it may be subject to restrictive interpretation or be partially invalidated.

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24 2026-9

How to avoid the legal risks of large-scale layoffs in enterprises?

A layoff of more than 20 people or accounting for more than 10% of the total is considered a large-scale layoff. The employer must provide a notice 30 days in advance, solicit opinions from the employees, and report the layoff to the labor department. Violating these requirements may result in a compensation of 2N times the employee's monthly salary.

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24 2026-9

How to protect one's rights when an executive violates the non-compete agreement and jumps to a competitor?

When executives change jobs to the same industry, they can arbitrate to claim breach of contract penalties and continue to fulfill their non-compete obligations. If the compensation is not paid monthly for more than three months, the employee can terminate the agreement. It is better to fix the evidence as soon as possible rather than later.

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24 2026-9

How can enterprises develop a legally valid and effective employee handbook?

The employee handbook must undergo a democratic process, be publicly announced, and contain legal content. If any of these three requirements are not met, it may not be accepted by the arbitration tribunal. The process of formulating the handbook shall comply with Article 4 of the Labor Contract Law.

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24 2026-9

Who bears the attorney's fees in a non-compete dispute?

In principle, the legal fees for non-compete agreements shall be borne by each party. If the agreement stipulates that the breaching party shall bear the fees, such request may be supported. The duration of the non-compete agreement shall not exceed 2 years, and the compensation shall be 30% of the average monthly salary.

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24 2026-9

What should I do if a friend borrows money and doesn't pay it back, and there's no loan agreement?

You can still sue even without a loan note: transfer records, chat logs, and call recordings can prove the lending relationship. The statute of limitations for litigation is three years. It's important to secure evidence as soon as possible and keep records of debt collection efforts.

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24 2026-9

Can companies apply for property preservation during debt collection?

For corporate debt collection, applicants can apply for property preservation. The court will issue a ruling on the application for pre-litigation preservation within 48 hours, and applicants are required to provide a guarantee. Lawsuits must be filed within 30 days, and the maximum preservation fee is 5,000 yuan, which can be guaranteed by a letter of guarantee.

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24 2026-9

How to deal with a corporate debt crisis?

The four-step process for handling corporate debt crises includes: sorting out debt assets, negotiating deferral and installment payments, debt restructuring or bankruptcy reorganization, and individual repayment that can be revoked within six months. It is necessary to take timely measures to minimize losses.

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24 2026-9

Will the enforcement of the couple's joint debts implicate the spouse?

The identification and relief of spouses' property in the enforcement of joint debts: three types of situations involving joint debts and joint signatures, the rules for seizing jointly owned property, and spouses' right to raise objections to enforcement within 15 days.

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24 2026-9

What are the methods for collecting overdue payments from enterprises?

There are five approaches to collecting debts from enterprises: account reconciliation letters, lawyer's letters, payment orders, pre-litigation preservation and litigation, commercial mediation, and forced execution; for large-scale debts, it is advisable to first secure the debts and then negotiate with the debtors.

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24 2026-9

What should I do if I haven't received a promissory note even though I've lent money?

You can still sue even without a promissory note: Use transfer records and chat recordings to supplement the two requirements of "agreement and delivery". First, secure the evidence and then sue within the three-year statute of limitations.

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24 2026-9

Can I require the other party to bear the attorney's fees in a private lending transaction?

Civil loan attorney's fees: If there is an agreement in the promissory note, the court generally supports it. If there is no agreement, each party generally pays for their own fees. The litigation fees shall be borne by the losing party in accordance with Article 29 of the "Measures for the Payment of Litigation Fees".

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24 2026-9

What should I do if a friend borrows money and doesn't pay it back?

If a friend borrows money and refuses to repay it: First, send a written reminder to keep evidence. Then, within the three-year statute of limitations, sue them based on the transfer records and chat records. After winning the lawsuit, you can apply for forced execution.

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