Triumph Against Unlawful Dismissal: Securing Double Severance and Legal Fee Reimbursement in Shenzhen

This case ranks among the more challenging ones my team has encountered, yet I felt compelled to share this account to affirm that justice and the rule of law are indeed present in China. The path to success is seldom straightforward; however, with perseverance, victory is attainable in time.

Before delving into the details of the case, I must express my gratitude to my client, whom I’ll refer to as Ronald, for his unwavering trust in my abilities. Without his steadfastness, we would not have reached such a favorable outcome.

For reasons of confidentiality, ‘Ronald’ is a pseudonym. Overjoyed with the successful resolution I secured, Ronald generously sent a box of wine as a token of his appreciation.

Ronald sought my counsel after being dismissed by his agency following rejections from three different schools. To provide some context, Ronald was contracted by an agency that assigned him to various teaching positions, a practice known legally as “labor dispatchment.” According to Ronald’s contract, the agency retained the authority to terminate his employment if he were to be rejected by three schools, a stipulation that they invoked to justify his dismissal.

Ronald was understandably upset about being terminated without just cause and approached me to inquire if I was willing to take on his case. Upon reviewing his contract, I too concluded that his dismissal was unlawful, as there appeared to be no legitimate grounds for the agency’s action.

 

We initiated legal proceedings against the school and entered formal labor arbitration. Regrettably, the arbitrator’s decision was not entirely in our favor. While our claim for unpaid wages was upheld, the request for severance pay was denied. The arbitrator was of the opinion that there were valid grounds for Ronald’s dismissal. I was deeply dissatisfied with this outcome, as I believed the ruling to be unjust and felt that the arbitrator needed a refresher course in labor law.

Despite this setback, there was a silver lining. Post-trial, Ronald promptly received his termination letter and secured a new position with a significantly higher salary. Demonstrating his trust in me once more, Ronald opted to appeal the decision. It was time for round two in court.

During the appeal, we achieved a resounding victory. The presiding judge unequivocally informed the agency’s legal representatives that their conduct was unlawful, effectively erasing the complacency from their expressions.

Ronald was awarded double the severance pay amounting to 27,302.82 Yuan, along with a reimbursement of 5,000 Yuan for legal expenses.

Although the actual legal costs exceeded 5,000 Yuan, this figure represents the maximum reimbursement allowed under the law. Shenzhen has unique regulations (applicable only within this locality and not in other cities) mandating that the losing employer is liable to cover up to 5,000 Yuan of the winning party’s legal fees.

So, what constitutes wrongful termination and warrants double severance? In China, dismissal of an employee is generally unlawful unless it involves criminal acts or extremely serious misconduct. Grounds such as “insufficient job performance,” “issuance of three written warnings,” “sleeping on the job,” or “yelling at students” are not considered valid for termination.

In essence, being let go before your contract expires constitutes illegal termination in 99% of cases. I have successfully represented numerous clients who were dismissed immediately after giving a 30-day resignation notice. If you find yourself in a similar situation, I urge you to reach out to me. I will review your case and advise you on the legality of your employer’s actions. Please note, I do not charge any consultation fees for written consultations!