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a man sued the company for "lowest salary" and was fired. the court ruled that the company's salary reduction and termination of the labor contract were illegal and required the company to compensate the fired employee according to law.

2024-09-16

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"the company made a decision to reduce my salary and demote me illegally. not only did the union fail to supervise and correct the situation according to the law, but it also failed to act and acted arbitrarily, which seriously violated my legal rights and interests."

on the afternoon of september 15, mr. li told the huashang daily dafeng news reporter that his lawsuit against the trade union committee of shenzhen special economic zone jianfa environmental technology co., ltd. (hereinafter referred to as shenzhen jianfa) had been filed for nearly a year and he hoped that a verdict would be made as soon as possible.

before the demotion and salary cut, the company verbally informed him that he had been ranked last in the assessment for two consecutive years.

mr. li introduced that he was born in the late 1980s and went to shenzhen city, guangdong province to develop his career after graduating from university.

"on july 7, 2020, i signed a labor contract with shenzhen jianfa and became an employee of the company."

mr. li introduced that shenzhen jianfa is a state-owned enterprise. the labor contract stipulates that mr. li's labor remuneration is a monthly basic salary plus an annual performance salary. the contract will start from july 8, 2020 and end on august 22, 2021.

"after my contract expired in august 2021, the company did not renew my contract, but i have been working normally in the company."

mr. li said that in late april 2022, the company verbally informed him that he would be demoted and his salary would be reduced on the grounds that he had been ranked last in the performance appraisal for two consecutive years, but did not specify the specific amount of the salary reduction and the demotion. he did not know the total assessment score and the process of the last-place assessment, and the company did not contact him to confirm the performance appraisal results. in addition, the assessment process was inconsistent with the performance management method formulated by the company (not formulated through democratic procedures, no job review and evaluation was organized, and no public announcement was made, etc.), so he raised objections and repeatedly asked the company to provide written performance appraisal materials for the previous two years and each quarter, but the company refused to provide them.

the company cuts wages, and the union agrees

dissatisfied with the labor arbitration result, he sued the company in court

"at the end of april 2022, after my salary was paid, i found that i was nearly 2,000 yuan short, which confirmed that the company had indeed reduced my salary."

mr. li said that after his salary was cut, he reported it to the company leaders many times, but the problem has not been solved. in desperation, he filed a labor arbitration with the shenzhen bao'an district labor and personnel dispute arbitration committee on august 16, 2022, demanding that the company pay him the salary difference of 7,972 yuan from may 1 to august 31, 2022; pay the performance salary difference of 17,000.51 yuan from july 8, 2020 to december 31, 2021; and pay the double salary difference of 175,953.72 yuan during the period when the labor contract was not signed.

mr. li said that unfortunately, the shenzhen bao'an district labor and personnel dispute arbitration committee believed that although he raised objections to the company's salary cut, he did not appeal as required; and he did not raise any objections when the company distributed year-end bonuses in 2020 and 2021. therefore, he did not fully support his claims, but only ruled that the company pay him a performance salary difference of 268.58 yuan from july 8, 2020 to december 31, 2021; and pay him a double salary difference of 135,623.32 yuan for the period during which he did not sign a labor contract.

mr. li was dissatisfied with the arbitration result and sued the company in the shenzhen baoan district court at the end of october 2022.

he appealed the first-instance judgment, and the second-instance court basically supported his appeal.

mr. li said that the bao'an district court of shenzhen city believed that since he discovered that his salary had been reduced in may 2022, he had not submitted evidence to prove that he had followed the relevant procedures for the appeal and exercised his rights to appeal, and that the company's adjustment of his salary had been confirmed and agreed by the trade union, so his claim was not supported.

on january 16, 2023, the bao'an district court ruled at the first instance that shenzhen jianfa shall pay mr. li an annual performance salary of rmb 268.58 from july 8, 2020 to december 31, 2021 within ten days from the date of effectiveness of this judgment; pay the double wage difference of rmb 135,623.32 for the period during which the labor contract was not signed; and pay attorney fees of rmb 2,685.74.

"i was dissatisfied with the first-instance court's decision and appealed to the shenzhen intermediate people's court."

mr. li introduced that the shenzhen intermediate people's court held in the second instance that shenzhen jianfa lacked factual and legal basis for reducing his salary based on the unpublished assessment results and the assessment method passed in 2021, so it changed the judgment on august 7, 2023 as follows: shenzhen jianfa shall pay mr. li the annual performance salary difference of rmb 17,000.51 from july 8, 2020 to december 31, 2021 within ten days from the date of effectiveness of this judgment; pay double salary of rmb 145,138.46 for not signing a labor contract; pay legal fees of rmb 3,362; and pay the salary difference of rmb 7,972 from may 1, 2022 to august 31, 2022.

mr. li said that after the final judgment of the shenzhen intermediate court was issued, he and his company both applied for a retrial to the guangdong high court. on july 16, 2024, the guangdong high court ruled to reject the retrial requests of both parties.

the court determined that the company's unilateral termination of the labor contract was illegal and ordered the company to pay compensation according to law

mr. li said that what he did not expect was that just a few days after he sued the company in accordance with the law, on november 9, 2022, the company suddenly issued him a "notice of termination of labor contract". it unilaterally announced that the labor contract would be terminated from that day and compensate him for economic losses of 64,523.33 yuan.

he was dissatisfied with this and filed a labor arbitration again, requesting the company to pay him the wage difference of 4,810.69 yuan from september 1 to november 11, 2022; pay the difference of 118,309.42 yuan in compensation for illegal termination of the labor contract; and pay him a performance salary of 58,493.41 yuan in 2022.

on august 31, 2023, the shenzhen bao'an district labor and personnel dispute arbitration committee ruled that shenzhen jianfa shall pay mr. li within 5 days from the date of effectiveness of the ruling: the wage difference of rmb 4,810.69 from september 1, 2022 to november 11, 2022; the performance wage difference of rmb 14,553.87 from january 1, 2022 to november 11, 2022; and the compensation difference of rmb 7,943.17 for illegal termination of the labor contract.

mr. li said that he was dissatisfied with the arbitration result and filed a lawsuit with the bao'an district court again. on november 24, 2023, the bao'an district court ruled at first instance that shenzhen jianfa shall pay mr. li a salary difference of rmb 4,810.69 from september 1, 2022 to november 11, 2022, a performance salary difference of rmb 5,165.27 from january 1, 2022 to november 11, 2022, a difference of rmb 72,870.4 in economic compensation for illegal termination of the labor contract, and a lawyer's fee of rmb 2,280.84 within ten days from the date of effectiveness of this judgment.

futian district court second court summons

"after the first-instance verdict was announced, shenzhen jianfa appealed. on august 26 this year, the shenzhen intermediate people's court rejected the appeal in the second instance and upheld the original verdict."

mr. li said that at this point, the two cases he filed against shenzhen jianfa have all come into effect and the compensation awarded has all been received.

the union agreed to the company's demotion and salary cut, believing it was illegal, and sued the other party for an apology and compensation for losses.

"representing and safeguarding the legitimate rights and interests of employees is the basic duty of the trade union. when the company illegally implemented performance appraisals, demoted me, and terminated my labor contract, the trade union not only failed to perform its duties and obligations in accordance with the law, and promptly investigated, supervised, and corrected the company's illegal behavior, but instead organized a trade union committee meeting to agree to the company's demotion and salary reduction, and directly agreed to the company's termination of my labor contract during the arbitration period. the company's trade union never notified me of the relevant decisions made, excluding my right to know, participate in, and supervise the work of the trade union."

the company decided to terminate the labor contract with mr. li, and the union replied that it agreed

mr. li said that in october 2023, based on the ruling of the court and arbitration body that the company had violated the law, he sued the company's trade union for inaction and misconduct in the shenzhen futian district court.

in the relevant evidence provided by mr. li, the reporter from huashang daily dafeng news saw: on april 18, 2022, the shenzhen jianfa trade union agreed that the company would reduce mr. li's salary; on november 3, 2022, the trade union agreed that the company would terminate the contract with mr. li.

mr. li said that in its written "reply" in the relevant case, the company believed that the salary cuts and demotions were legal on the grounds that the decisions were agreed upon by the trade union. the trade union failed to supervise and correct the company's illegal acts, which seriously infringed upon his legal rights and interests, and the trade union should bear tort liability.

in his complaint, he asked the court to order the shenzhen jianfa labor union to apologize to him in writing and pay him 30,000 yuan in compensation; and the union to bear the litigation costs of the case.

mr. li introduced that the case was heard twice in the futian district court on january 5 and september 2 this year, and is currently awaiting a verdict.

he said that during the trial, shenzhen jianfa trade union argued that the trade union did not make a "decisive" action, but responded to the corresponding opinions according to the company's internal procedures. in other words, the trade union did not make a decision to demote him, reduce his salary, or terminate his labor contract, and did not cause any actual damage to his rights. the trade union's actions were to implement internal management regulations, which belong to the company's internal governance matters and do not have external legal effect. they are not within the scope of civil cases heard by the court.

the union also argued that it did not commit any infringement against mr. li, did not cause any infringement damage to mr. li, and therefore did not need to bear any infringement liability. mr. li's various claims lacked factual and legal basis, and the court was requested to dismiss mr. li's lawsuit in accordance with the law.

"it has been almost a year since the case was filed, and there has been no result. i hope the court will make a judgment in accordance with the law as soon as possible." mr. li said.

on september 14, a staff member in charge of the case at the shenzhen futian district court told the huashang daily dafeng news reporter that the verdict of mr. li's lawsuit against the shenzhen jianfa trade union will be announced soon, and asked mr. li to wait patiently for a few more days.