In August, Jacob approached me with the intent to resign from his position, providing his employer with a 30-day notice on the 21st. His school, however, refused to accept this, citing a clause in his labor contract that mandated a 60-day notice period. Such clauses are commonly included in labor contracts, though they are not legally enforceable—the standard notice period required is indeed 30 days.

Jacob initially engaged a local attorney, but due to language barriers and unsatisfactory representation, he sought my services.

Our primary objective was straightforward: to enable Jacob to resign lawfully. I advised him to verify whether his employer had been contributing to his social insurance—a common oversight by employers who mistakenly assume it’s not mandatory for foreign workers. As anticipated, his employer had not made the necessary payments.

We obtained a document from the social insurance bureau confirming this omission. This document was pivotal, allowing Jacob to terminate his labor contract immediately without the standard notice period and to seek severance compensation based on his tenure.

After delivering a formal statement of contract termination to his employer, we proceeded to file for labor arbitration. The employer’s response was hostile, including threats of legal action, blacklisting, and deportation.

They attempted to compel Jacob to forfeit his August salary and pay a penalty to the training center amounting to 30,000 Yuan, which we categorically rejected. I urged Jacob to vacate his employer-provided accommodation promptly and to cease all communication with the school.

Despite their intimidation tactics, including unfounded accusations and attempting to exploit Jacob’s foreign nationality, we remained steadfast.

They resorted to fabricating stories that the Foreign Experts Bureau and the Public Security Bureau suspected Jacob of illicit employment, aiming to intimidate him. These claims were baseless. To reassure Jacob, I personally contacted both authorities and confirmed that he was not under any suspicion or investigation.

The manager also falsely asserted that Jacob would have no chance in any legal proceedings in China due to his foreign nationality. He boasted of strong connections with local officials, suggesting that these ties would cause the case to be dismissed before it could even commence.

On October 20th, a member of my legal team was dispatched to represent Jacob in Shandong, where the training center had engaged a local attorney for their defense.

Labor arbitration is renowned for its expeditious process compared to traditional court proceedings, often concluding within 60 days. We initiated the process on September 13th, and the arbitration committee scheduled the hearing for just 37 days later. It’s worth noting that the typical wait time for a hearing date is around 30 days; the additional week was due to the National Holidays.

The hearing proceeded very smoothly. However, the training center’s manager displayed unprofessional behavior, labeling us as unscrupulous lawyers and betrayers for defending a foreign national.

Following the hearing, the training center reduced Jacob’s so-called “release fees” from 75,000 Yuan (composed of a 30,000 penalty and 35,000 for August’s salary) to 50,000 Yuan, citing a breach of contract. This was a last-ditch effort to infringe upon Jacob’s legal rights, as they anticipated a loss in the case.

I need to stress that any punitive clauses in an employment contract regarding resignation are legally void. Regardless of what the contract stipulates about penalties for leaving, such provisions are not enforceable.

Needless to say, we rejected their offer outright. We were not about to capitulate with success on the horizon. The social insurance claim was our trump card—a decisive, unbeatable play that guaranteed our victory.

Ultimately, the Labor Arbitration Committee ruled in our favor, awarding Jacob a total of 76,625 Yuan. This sum included wages for August and September (up to his departure on the 5th), severance pay, and a refund of his housing deposit, all payable within ten days.

 

The attached document is the official ruling from the Labor Arbitration Committee. Apologies for the image quality; it was provided under less-than-ideal circumstances.

If you find yourself in a similar predicament, please reach out. This case underlines the protection afforded by Chinese law against unlawful employment practices. Do not endure

exploitation from illegal employers.