Case Background
We represented an overseas construction project employee (Plaintiff) in a labor dispute against a large Chinese engineering and construction enterprise (Defendant). The Plaintiff was assigned to a project site in a South Asian country in February 2009. No written labor contract was signed. In November 2009, the Defendant unilaterally terminated the relationship. The Plaintiff claimed approximately RMB 400,000+ in total compensation for illegal termination, wage arrears, and overtime pay.
Core Case Disputes
1. Disagreement on Labor Relationship Nature
- Plaintiff’s Claim: A de facto labor relationship existed.
- Defendant’s Defense: It was a service relationship and the Plaintiff was “illegally employed.”
2. Conflict over Remuneration Standard Recognition
- Plaintiff: Agreed position was Project Manager, entitled to corresponding salary.
- Defendant: Only paid according to Civil Engineer standards.
3. Legal Application of Working Hour System
- Defendant’s Claim: Overseas projects apply an irregular working hour system.
- Plaintiff’s Rebuttal: The system lacked approval from the labor administration authorities.
4. Legality of Dismissal Dispute
- Whether the termination procedure complied with Article 39 of the Labor Contract Law.
Our Representation Strategy
1. Rigorous Labor Relationship Argumentation
- Organized an evidence chain: wage payment records, work instruction emails, project appointment documents.
- Cited Article 1 of the “Notice on Relevant Issues Concerning the Establishment of Labor Relations” to lock in the three essential elements of a de facto labor relationship.
2. Precise Calculation of Wage Arrears
- Retrieved salary standards for the same position within the same project.
- Invoked Article 82 of the Labor Contract Law to claim double wage payment for the unsigned contract period.
3. Compliance Verification of Working Hour System
- Proved the Defendant failed to obtain approval for an irregular working hour system.
- Argued that overseas projects still adhere to China’s standard working hour system.
4. Illegal Termination Compensation Framework
- Based on Article 87 of the Labor Contract Law, claimed compensation (2N).
Case Result
The court ruled (upholding the arbitration award):
- A labor relationship existed between the parties (February 13, 2009 – November 13, 2009).
- The Defendant illegally terminated the labor contract and was ordered to pay compensation of RMB 26,482.76.
- Wage arrears of RMB 62,482.83 were fully supported.
- Double wage payment of RMB 116,551.72 for the unsigned contract period was approved.
- Claim for unpaid annual leave wages was dismissed (employment duration less than one year).
Case Insights
1. Key Risk Control Points in Cross-border Employment
**Risk Linkage** **Compliance Requirement**
Contract Signing Written contract mandatory for overseas work
Working Hour System Special overseas systems require domestic approval
Termination Procedure Dismissal notice must meet statutory requirements
2. Evidence Management Standards
- Retain written records of job appointments and salary confirmations for overseas work.
- Wage payments must specify itemized details (base salary/overseas allowance).
3. Rigor of Sovereign Law Application
- Chinese enterprises’ overseas projects remain subject to Chinese labor law jurisdiction.
- Burden of proof for “illegal employment” defenses rests with the employer.
