Frequently Asked Questions

24 2026-10

Is it legal for the company to use compensatory time off to offset overtime work during normal working hours?

On rest days, employees can choose between compensatory leave and a 200% salary increase for overtime work. For regular overtime work, employees are generally paid at a rate of 150% of their normal salary. On statutory holidays, the salary rate is 300%, and compensatory leave is not allowed as an alternative. Compensatory leave must be of equivalent duration and reasonable in terms of timeframe.

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24 2026-10

Can I claim overtime pay if I volunteer to work overtime?

Volunteer overtime work generally cannot claim overtime pay: it requires three elements, namely, the unit arranges or retroactively approves it, occupies time outside working hours, and engages in work-related matters; except for disguised forced overtime, the fact of overtime work shall be proved by the worker.

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24 2026-10

Can overtime work on statutory holidays be replaced by compensatory leave?

Overtime work on statutory holidays cannot be replaced by adjusting working hours. Article 44 of the Labor Law stipulates that overtime work shall be paid at not less than 300% of the wage, and the insufficient payment shall be made up. Special working hours, except for those approved by the competent authority, shall not be allowed.

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24 2026-10

Are on-duty work and overtime the same thing?

On-call duty is not the same as overtime work. On-call duty mainly involves being on standby and ready to respond, and the compensation is determined by agreement. Overtime work must be arranged by the employer, with pay rates of 150% for extended working hours, 200% for rest days, and 300% for statutory holidays. The determination of the status of overtime work depends on the evidence provided.

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24 2026-10

During the secondment period, who should pay the salary?

During the period of secondment, the salary is generally paid by the original employing unit, and the labor relationship remains unchanged, with the original contract being honored. During the period of secondment, the original unit shall bear the responsibility for work-related injury insurance.

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24 2026-10

How to determine the jurisdiction court for disputes over payment of goods?

The disputes over payment shall be governed by the court of the defendant's domicile or the place of performance of the contract. Where there is a written agreement, the disputes shall be governed by the agreement; where there is no agreement on the place of performance, the place where the party receiving the money is located shall be the place of performance of the contract.

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24 2026-10

Can a bank statement be used as evidence of a debt?

The invoice, once confirmed by both parties, can be used as the core documentary evidence to determine the amount of the debt. The invoices prepared unilaterally need to be corroborated by the contract, the delivery note, and the transaction records. Standardizing the invoicing process and keeping the original copies will facilitate the provision of evidence in litigation.

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24 2026-10

How to sue a customer for unpaid debts and recover the money owed?

If a customer defaults on payment, you can sue to recover the debt. Within the three-year statute of limitations, you should organize contracts, delivery notes, account statements, and collection records. If necessary, apply for property preservation. After winning the lawsuit, apply for forced execution in a timely manner.

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24 2026-10

Is it considered a guarantee if the guarantor only signs the IOU?

Whether signing a promissory note alone constitutes a guarantee depends on the position of the signature and the intention of the signer. Generally, signing in the "Guarantor" section constitutes a guarantee, while signing in a blank area poses extremely high risks and should be avoided at all costs.

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24 2026-10

Does the court support interest-bearing IOUs?

Compound interest is not always unsupported: The maximum interest rate for private lending is four times the one-year LPR at the time of the contract's establishment. The court will not support the part of the compound interest that exceeds the standard, and the total principal and interest will be capped at the maximum amount calculated based on the initial principal.

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