1.Basic Facts of the Case
Miss Zhao joined Company A on June 3, 2022, serving as the store manager of a store in the Shenyang area in Northeast China. On December 30, 2024, Company A issued a "Notice of Termination of Labor Contract" to Miss Zhao, stating that due to significant changes in objective circumstances, the store where Miss Zhao worked could no longer continue operations, resulting in the impossibility of fulfilling the labor contract between both parties. After multiple negotiations, no agreement was reached, and therefore, the notice informed Miss Zhao that the labor contract between both parties would be terminated on that date.
2.Accepting entrustment
In January 2025, lawyer Wu Zhiheng officially accepted the commission. Since Miss Zhao was in the Northeast and unable to meet with lawyer Wu Zhiheng, the two parties could only communicate online. Despite the long distance, fortunately, after long-term communication between the two parties, lawyer Wu Zhiheng, after fully understanding the facts and analyzing the case, summarized the focus of the case:
Firstly, Company A claims that due to significant changes in objective circumstances, it is unable to continue its operations, leading to the impossibility of fulfilling the labor contract between both parties. Whether the impossibility of fulfilling the contract is caused by significant objective changes, Company A should bear the burden of proof.
Second, even if significant changes occur that are sufficient to affect the performance of the labor contract, Company A should first negotiate with Miss Zhao to change the content of the contract. The negotiation content should be about changing the job position while retaining the labor relationship.
III. After significant changes in objective circumstances, if Company A is indeed unable to provide a new position, does not have the conditions to offer a position, and there is no operability in negotiating with the employee to change the content of the labor contract, resulting in the failure to achieve the purpose of the contract, the employer may terminate the labor contract.
IV. If an employer terminates the labor contract based on the above reasons, it shall also pay economic compensation in accordance with the standards set forth in Article 47 of the Labor Contract Law, which is commonly referred to as "N".
In addition, according to Article 40 of the Labor Contract Law, if the labor contract is terminated due to changes in objective circumstances, the employer must notify the employee 30 days in advance. If advance notice is not possible, the employer shall pay the employee an additional one-month salary in lieu of the advance notice period, which is commonly referred to as "+1". The total of the above is N+1.
3. Get to the point and determine the arbitration claim
After carefully analyzing the case, lawyer Wu Zhiheng quickly determined the arbitration request. He proposed an arbitration claim amounting to a total of 52,641.95 yuan, including compensation for the illegal termination of the labor contract, unpaid annual leave salary, wage differences, and attorney fees.
In addition, during the communication process of the case, lawyer Wu Zhiheng keenly noticed that although the client's workplace was in the northeast, the business license of Company A was registered in Shenzhen. According to the "Regulations on Promoting Harmonious Labor Relations in the Shenzhen Special Economic Zone", in labor dispute arbitration and litigation cases, if the employee wins and the lawyer's fee paid by the employee is within 5,000 yuan, the employer can bear the cost.
In order to minimize the litigation costs for the client, lawyer Wu Zhiheng stood unreservedly in the client's shoes, fully protecting the client's interests. He set the lawyer's agency fee at 5,000 yuan and initiated arbitration at the Shenzhen Labor and Personnel Dispute Arbitration Commission.
四. Arbitration Award
The Shenzhen Labor and Human Resources Dispute Arbitration Committee held that Company A had not submitted any evidence to prove that there were no other job positions available for Miss Zhao, nor had it submitted any evidence to prove that it had negotiated with Miss Zhao regarding the change of the content of the labor contract and that the two parties failed to reach an agreement. Therefore, Company A should bear the legal consequences of failing to provide evidence, and thus, Company A's dismissal was illegal.
Finally, the Shenzhen Labor and Personnel Dispute Arbitration Commission ruled in accordance with the law that Company A shall pay Ms. Zhao a total of 52,002.05 yuan for compensation for the termination of the labor contract, unpaid annual leave salary, wage differences, and legal fees, basically fully supporting our arbitration request.
律师介绍
Wu Zhiheng is a full-time lawyer at Guangdong Hebang Law Firm and currently serves as a member of the Private Economic Promotion Professional Committee of the Guangzhou Lawyers Association. He specializes in contract disputes related to sales, leasing, construction engineering, private lending, marriage and family matters, personal injury compensation cases, as well as administrative and criminal cases. During his six years of practice, he has participated in and represented hundreds of cases. He has also been involved in consulting work for multiple advisory units, including government administrative departments and companies.
Contact information: 15626472780 (also available on WeChat).
