Southern Perspective Shenzhen

Last week I posted a small article to emphasize the importance of Labor contracts and conditions. Whether you are an employer or employee, it is important to understand how to protect your interests. This week I will post a series of labor cases to show how they came out and where people went wrong. Here is a recent case I have reviewed to illustrate the importance of:

-Having a contract

-Having a work permit

-Know what rights you have

So, let’s start with the American

All foreigners are required to apply for a Work Permit for Foreigners if they want work in China. “Jack”, an American, failed to renew his work permit. Later, in no connection, the company he worked for removed him from his position as executive director, legal representative and general manager. “Jack” then leaves the company on May 12^th 2008.  “Jack” sues the company for back wages and “deprivation of his labor right and labor condition”. The fact is, the company had never signed a labor contract with him.

Since he did not have a labor contract, he could not be seen by the arbitration committee, which deals with employment disputes. He then filed a law suit and claimed he was owed:

- A labor contract to be signed and continue to be performed

- To repay back his expenses

- Pay double salary for the period the contract was not signed (2006 to 2008, laughable this guy)

The court ruled, in order to be protected by labor laws, all foreigners are required to apply for a Work Permit for Foreigners if they want work in China. He was not qualified to work in China and by working for the company; he had violated laws regulating employment of foreigners. “Jack” had no labor rights. They did say since he left on May 12th, 2008 he should get payment for 12 days salary and all other claims were denied.

How is your employment contract looking?