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  • 2025-12-03
  • 5 minutes Read
Can a company arrange for its employees to take a long-term leave when it is under poor operating performance?

Case 1: In April 2023, the company notified Zhu that due to its poor operating performance, it would arrange for him to take a leave of absence. It would pay him labor remuneration in accordance with legal provisions, and the resumption date would be announced separately. The company paid him full salary in the first month and then paid him at the minimum wage standard thereafter. During the leave, Zhu repeatedly asked about the resumption date, but the company only replied, “Wait for further notice”. Half a year later, Zhu filed an application for labor arbitration on the grounds that…

  • 2025-11-05
  • 5 minutes Read
How to Determine the “Contract Signing Location” for Electronic Contracts?

With the development of electronic information technology, electronic contracts are increasingly widely used in commercial activities. Some electronic contracts stipulate that “the court at the contract signing location shall have jurisdiction”. However, due to the paperless and cross-regional nature of electronic contracts, how to determine the “contract signing location” of electronic contracts? The agreement with a specific location which shall have the actual connection with the agreement. According to Article 35 of the “Civil Procedure Law”, parties to a contract may, by written agreement, choose a court with jurisdiction over a dispute that has an actual connection to the dispute,…

  • 2025-11-05
  • 4 minutes Read
Does Employees’ “Assemblies” a legal action in China?

Case 1: In August 2023, a property management company proposed converting the employment form of labor contract to labor dispatch, Miao and several other employees refused such proposal. In early September 2023, the company arranged a training for employees, but Miao and several other employees refused to participate. Instead, they gathered at the residential community where their posts were located for several consecutive days, marched in a line, and chanted slogans. ((2024) Hu 0115 Min Chu No. 34302) Case 2: From October 25 to 28, 2016, employees of an energy company gathered on the green space at the entrance of…

  • 2025-09-29
  • 5 minutes Read
Issues related to Debt Repayment in Kind

In recent years, debt disputes have occurred frequently. Many companies are short of cash flow, and choose to repay debts with real estate, vehicles, goods, and other items. Many creditors are unwilling to accept debt repayment in kind. Compared with cash, debt repayment in kind involves many risks. However, under the current economic situation, if the risks of debt repayment in kind are fully considered in advance, it can still be a second-best option. Generally speaking, debt repayment in kind mainly involves risks in four aspects: Ownership of the Item Before accepting debt repayment in kind, the creditor should carefully…

  • 2025-09-29
  • 3 minutes Read
Can you require the employee to return the paid economic compensation after the labor relationship has been restored?

Company A notified Long of the termination of the labor contract and paid the economic compensation. Long then filed a labor arbitration application requesting the restoration of the labor relationship, and the labor arbitration commission ruled in favor of Long. After the labor relationship restored, Company A required Long to return the paid economic compensation, but Long refused. Company A initiated a new labor arbitration proceeding, claiming the paid economic compensation and other payments. The labor arbitration commission, the court of first instance, and the court of second instance all upheld Company A’s claim. [(2024) Yue 01 Min Zhong No.…

  • 2025-09-03
  • 4 minutes Read
Did you issue the correct invoice for the assignment of creditor’s rights?

In business activities, scenarios such as the assignment of creditor’s rights, transfer of debts, or collection/payment on behalf of others are not rare. While all parties may reach an agreement on the flow of funds, but may ignore the tax treatment, specifically, “how to issue invoices”. Article 18 of the “Measures for the Administration of Invoices” stipulates: “Units and individuals that sell goods, provide services, or engage in other business activities and collect payments for external business transactions shall issue invoices to the payers; under special circumstances, the payer shall issue invoices to the payee.” Therefore, business activities are the…

  • 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
  • 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
  • 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…