Logo L&E Global

China: The Employer is held not liable against the Employee due to Employee’s own duties of HR management

The Employer is a newly established company and the Employee was onboard and appointed as vice general manager and operation director without entering a written employment contract with the Employer. Pursuant to the PRC Labor Contract Law, where the employers fail to enter into written employment contract with the employees after one month since joining, such employer is liable to provide double normal monthly salary to the affected employees up till the service period reaches one year. The Employee filed a case against the Employer to claim Employer’s payment of double monthly salary. The Court of First Instance and the Appellate Court both ruled in favor of the Employer. The Courts came to the ruling based on: (1) the Employee’s work duties include HR management; (2) the Employee should have notified the Employer for timely execution of written employment contract with him; and (3) it is not fair for the Employee to receive any additional compensation due to the failed fulfillment of his own work duties.