China: The Employee is ruled to Have Established Employment with the Company Before University Graduation

The Employee entered into an Agreement with and started to work at the Company two months before his graduation from university. In the Employment Agreement, both parties have agreed on the work position, probationary period, monthly salary and total service period (3 years). The Employee continued to work at the Company after he graduated from university and then left the company thereafter. The Employee then filed a case against the Company to claim determination of his service period at the Company before university graduation also as employment relationship. Both the Court of First Instance and the appellate Court ruled in favor of the employee. The Courts came to the ruling based on: (1) the university student status will not necessarily extinguish the application of employment relationship; (2) the purpose of service at the Company is for employment rather than university assignment and (3) the Employee checks the general characteristics of employment relationship, i.e. he was regulated by the Company, compensated for service and reimbursed of expenses.