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Mr. L joined company S in October 2012, and did not inform S of his medical treatment history. In 2016, S found L had been identified as a grade 8 labor dysfunction. S believed that L’s labor contract was concluded by use of fraudulent, so S terminated the labor contract. A dispute arised. In practice, if an employee conceals medical treatment history, some employers would terminate the labor contract in accordance with Article 26 of the “Labor Contract Law” on the grounds that the relevant labor contract was concluded by use of fraudulent. S is one of those employers. Some…

In May 2019, Zhang borrowed 100,000 CNY from Lee for purchasing an apartment. Zhang issued an IOU, in which Zhang promised to repay in 1 year. Later, due to the epidemic, Lee was afraid that he would not able to recover the debt on the due time; he planned to ask Zhang to repay earlier. Lee went to Zhang’s home, and Zhang was not at home, but Lee met Zhang’s classmate Sun who visited Zhang’s parents. Lee told Sun about Zhang’s debt, Sun decided to offer a guarantee and signed on the IOU. In May 2020, Zhang failed to repay…

Lee had worked for 11 years, and was diagnosed with lung cancer after he had joined the new company for less than 1 year. Lee took sick leave. The company decided that Lee’s medical treatment period (hereinafter referred to as the “Period”) should be 6 months which is calculated in accordance with his working years. However, Lee insisted that his illness was a special disease, so the Period should be 24 months. They had the disputes on the Period. Regarding the Period for employees suffering from special diseases, the Lao Bu Fa [1995] No.236 stipulates that for employees suffering from…

Company B is a large-scale multinational motorcycles enterprise, which has registered several trademarks with English characters “HONDA” and relevant graphics, in the 12th trademark category in China in 1988 and 1998. An overseas Company M commissioned a domestic Company H to manufacture motorcycle parts marked with “HONDAKIT”, and those parts would be exported to Myanmar. To be noted that Company M required Company H to highlight HONDA, and narrow down the size of KIT. Because Company B had filed the above mentioned trademarks with the customs for IP protection, the customs detained the parts marked with “HONDAKIT”. Company B filed…

Article 39 of the “Labor Contract Law” stipulates that where an employee has committed a serious breach of the employer’s rules and regulations, the employer could unilaterally terminate the labor contract without any compensation. According to this article, if an employer has listed the behaviors which shall be determined as a serious breach, then will the employer unilaterally terminate the labor contract without any risk? In practice, the answer is negative. In the “Guidance and Reference for Civil Trial” (Volume 1, 2012), the Supreme People’s Court points out that, “on the determination of a serious breach of the employer’s rules…

An automatic renewal clause is very common in the commercial contracts, in which the parties plan to keep a long-term cooperation, such as strategic cooperation agreements, lease contracts, intellectual property licensing agreements, and so on. Normally, such clause is a standardized clause, and many companies are used to ignore it. Take the case (2019) Jing 0108 Min Chu No. 22059 for example, Company J signed a “Cloud Service Agreement” with Company K. The agreement states that J provides cloud service to K; the agreement is valid for 1 year, if either party does not intend to extend the agreement, it…

We have discussed the salary for suspension in the last issue, and this time the topic is the period for suspension. When an employee is involved in a violation of internal rules and regulations, or suspected in a violation of laws and regulations, the employer may require the employee to be suspended for investigation; and the suspension period is determined case by case. The period may be several days, such as, in the case (2014) Su Zhong Min Zhong Zi No. 03635, it is 3 days; or several months, such as, in the case (2019) Jing 02 Min Zhong No.…