The Application of the Principle of Good Faith in Employment

Article 3 of the "Labor Contract Law" stipulates that the conclusion of a labor contract shall follow the principle of good faith. Furthermore, Article 26 stipulates that a labor contract which is concluded by use of fraudulence is invalid. The above-mentioned provisions are the main legal basis for the application of the principle of good faith in employment. However, if…

Read More

The “Interpretation of Supreme People’s Court on the Application of Punitive Damages in Hearing Civil Cases of Infringement upon Intellectual Property Right” has been implemented on March 3, 2021

In recent years, the revised "Trademark Law", "Copyright Law", and "Patent Law" have added punitive damages clauses and raised the upper limit of statutory damages. However, the guidance on applying punitive damages clauses is not clear. On March 2, 2021, the Supreme People's Court issued the "Interpretation of Supreme People's Court on the Application of Punitive Damages in Hearing Civil…

Read More

How to set the guarantee term after the implantation of the “Civil Code”

Compared with the previous “Guarantee Law” and the relevant judicial interpretations, the “Civil Code” which came into force on Jan. 1, 2021 has amended the guarantee term. According to the “Civil Code”, where there is no agreement in the contract between the creditor and the guarantor on the guarantee term or such agreement is unclear, the guarantee term shall be…

Read More

Whether you can fire an employee for smoking?

When you read this title, you may have two reactions: (a) employees who are addicted to smoking think this is too harsh; (b) other employees who are the victims of “second-hand smoke" take it as a good idea, because it can prohibit more people from smoking in the working place. Which one is the right answer? Let’s see. The first…

Read More

Whether manufacturers shall be responsible for distributors’ liabilities for selling fakes?

“X Sports Franchise Store” is an online store which has the authorization of a well-known brand H Racket. The store purchased some counterfeit rackets at low prices, and mixed those fakes with the real ones. H Racket found the store had sold fakes, so it terminated the authorization. However, some consumers believes that H Racket’s authorization is the reason for…

Read More

Can enterprises prohibit employees from going hometown for the Spring Festival with the excuse of epidemic control?

The 2021 Spring Festival is approaching, but the epidemic becomes severer in many cities. Almost all the local governments have called on citizens to stay at their current cities during the Spring Festival, many universities have announced that students could leave the campus upon the approval of the universities. In view of the reactions of local governments and universities, considering…

Read More

Whether You can Use the Evidence Obtained in Breach of Contract?

Company Y required Company X to construct an E system, and provide maintenance services. Based on Y’s requirement, in the contract, both parties agreed that X’s staffs could only communicate and send documents by using the mailboxes provided by Y, and X’s staffs could not copy, or forward to other mailboxes. During the implementation of the contract, X’s staffs forwarded…

Read More

If the debtor does not know the existence of a guarantee, whether the guarantor could directly seek for compensation to the debtor after assuming the guarantee liability?

In May 2019, Zhang borrowed 100,000 CNY from Lee for purchasing an apartment. Zhang issued an IOU, in which Zhang promised to repay in 1 year. Later, due to the epidemic, Lee was afraid that he would not able to recover the debt on the due time; he planned to ask Zhang to repay earlier. Lee went to Zhang’s home,…

Read More

Whether 24 months medical treatment period shall be directly applied to employees suffering from special diseases?

Lee had worked for 11 years, and was diagnosed with lung cancer after he had joined the new company for less than 1 year. Lee took sick leave. The company decided that Lee’s medical treatment period (hereinafter referred to as the “Period”) should be 6 months which is calculated in accordance with his working years. However, Lee insisted that his…

Read More