By Xu Xiaodan King & Wood Mallesons’ Commercial & Regulatory group
Answers to Questions on Trial of Labor Disputes (IV) (“Answers (IV)”] was released by the Zhejiang High People’s Court and the Labor Disputes Arbitration Commission of Zhejiang Province on 30 December 2016. These clarify some common questions about judicial practice and existing rules. The following questions arise:
Is an employee entitled to double his salary if statutory clauses are not included in his employment contract?
Pursuant to Answers (IV), if an employment contract omits statutory clauses (such as employment duration, job duties, remuneration, labour protection, working conditions) but there is a genuine intention for the parties (employer and employee) to establish an employment relationship, the contract is likely to be deemed valid. The employee’s claim for double his salary will not be supported. In this situation, the parties can negotiate any omissions in the contract. Failing this, relevant provisions from collective contracts (if any), laws and regulations can be applied.
Continue Reading Latest Judicial Guidance on Labor Disputes in Zhejiang Province