Publications

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…

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.…

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…

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…

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…

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…

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…

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…

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…

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.…