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  • 2025-09-03
  • 4 minutes Read
Whether a female employee on maternity leave could get the performance-based salary?

Ms. Wong worked as a Business Manager in a company. Her labor contract stipulated that her salary consisted of a basic salary and a performance-based salary. The performance-based salary was CNY1,500 per month during the probation period and CNY2,500 per month after the probation period expired. She found the company had not paid the performance-based salary during the maternity leave, then filed an application for labor arbitration. The labor arbitration commission, the court of first instance and the court of second instance all ordered the company to make up the difference in the performance-based salary (see details in the Judgment…

  • 2025-08-12
  • 3 minutes Read
Rules on the disposal of the balance of the “three funds” of foreign-invested enterprises has been released

The “Law on Sino-foreign Equity Joint Ventures” and its implementing regulations, which were abolished on January 1, 2020, stipulated that foreign-invested enterprises should withdraw reserve funds, staff incentive and welfare funds, and enterprise development funds in accordance with the law (hereinafter referred to as the “three funds”). On January 1, 2020, the “Foreign Investment Law” came into effect, stipulating that foreign-invested enterprises are also subject to the “Company Law”, but a five-year transition period was granted to foreign-invested enterprises established in accordance with the original laws (i.e., until December 31, 2024). According to the “Company Law”, foreign-invested enterprises are not…

  • 2025-08-12
  • 5 minutes Read
When can the substitute transaction rule be applied?

Company A and Company B signed a contract stipulating that Chinese cabbage would be priced at CNY130 per ton. However, when A came to pick up the goods for the second time, B increased the price to CNY 350 per ton. A refused B’s proposal and eventually had to purchase from other sellers at a price higher than the original price. Afterwards, A filed a lawsuit against B, demanding the price difference. Whether A’s claim will be supported by the court? (2024) Lu 0283 Min Chu No. 12625 Article 60 of the “Interpretation of the Supreme People’s Court on Several…

  • 2025-08-12
  • 3 minutes Read
Managing tips regarding female employees who return to work before the maternity leave has been expired

Ms. Ning is a financial staff. She started working on the first day after giving birth and returned to work one month later. The company paid her salary as normal, and she also received maternity allowances. Later, the company requested Ning to return the salary paid during her maternity leave on the grounds that she had abused her power to issue herself a salary during that period. However, both the labor arbitration commission and the court rejected the company’s request. (See (2023) Jing 0111 Min Chu No. 15574 judgment for details) This is a typical case regarding salaries for female…

  • 2025-07-01
  • 3 minutes Read
“Implementation Plan for Further Improving the Credit Repair System” has been implemented from June 22, 2025 

Chinese government has adjusted its supervision of market entities from ex-ante regulation to ex-post regulation for more than a decade. During this process, the credit information publicized by enterprises has become a key indicator. Once publicized for non-compliant behaviors, enterprises’ transactions, financing, and other activities may be affected. For this reason, the government has also taken many measures to allow enterprises with non-serious or eliminated illegal and dishonest behaviors to rebuild their credit under certain conditions. On September 1, 2021, the SAMR issued the “Administrative Measures for Credit Repair in Market Supervision”, which stipulated the applicable scenarios, application processes, and…

  • 2025-07-01
  • 5 minutes Read
Contract fraud or Crime of contract fraud?

In a loan contract, if the borrower stats his real estate and a car to prove that he has solvency, but in fact he has neither. The lender could not recover the debt by civil litigation. Can the lender claim for the criminal liability for the crime of contract fraud? The answer to this question is the difference between contract fraud and the crime of contract fraud. The mainstream view holds that whether the party has the purpose of illegal possession is the key to distinguishing between contract fraud and the crime of contract fraud. In practice, to determine this…

  • 2025-07-01
  • 4 minutes Read
If an employee got injured during a business trip abroad, whether such injury could be considered as a work-related injury?

Mr. Ho was dispatched by the company to work in Africa, where he accidentally fell from an operating platform and suffered a fracture. After receiving treatment at a local hospital in Africa for 22 days, Ho returned to China and was transferred to a local hospital for continued treatment. After discharge, Ho applied for the determination of the work-related injury. The company had purchased work-related injury insurance for Ho in Africa, so it suspended Ho’s domestic social security. If the local social security bureau determined Ho’s injury as a work-related injury, the company would have to pay additional work-related injury…

  • 2025-06-03
  • 5 minutes Read
The “Interpretation on Several Issues Concerning the Application of Law in Handling Criminal Cases of Intellectual Property Infringement” has been effective since April 26, 2025

Regarding the application of law in criminal cases of IP infringement, the Supreme People’s Court and the Supreme People’s Procuratorate (hereinafter referred to as the “Two Heads”) previously issued three judicial interpretations in 2004, 2007, and 2020. With the emergence of new, complex, and high-tech criminal acts involving IP infringement, the “Criminal Law Amendment (XI)” in 2021 significantly revised the provisions on crimes related to IP infringement. Against this backdrop, on January 19, 2023, the Two Heads released the “Interpretation on Several Issues Concerning the Application of Law in Handling Criminal Cases of Intellectual Property Infringement (Draft for Comment)” for…

  • 2025-06-03
  • 5 minutes Read
Cautions related to guarantees provided by third parties

Guarantee is one of the important means to ensure the recovery of creditor’s rights. When a third party provides a guarantee for a debtor, the creditor shall carefully assess whether the guarantee is valid and enforceable. So, as a creditor, what are cautions related to guarantees provided by third parties? Firstly, from the perspective of the guarantee subject, when a third party provides a surety guarantee, it is necessary to confirm its capacity to provide the guarantee. This issue involves two aspects:(1) Is the subject prohibited from acting as a guarantor? and (2) Are there any legal preconditions for this…

  • 2025-06-03
  • 4 minutes Read
Keep the mixed employment by affiliated enterprises in the right track

In practice, many affiliated enterprises engage in mixed employment. Typical scenarios of mixed employment include two situations: 1. Workers provide labor for two or more affiliated enterprises simultaneously. For example, A serves as the legal counsel for a group company and, due to the lack of legal staff in a subsidiary, A also undertakes legal work for the subsidiary. 2. Workers provide labor alternately for two or more affiliated enterprises. For example, A, an engineer, was assigned to work on a project for a Beijing-based affiliate, and after completing the project, is reassigned to a Guangzhou-based affiliate for another project.…