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The biggest headache for the HR department is the fake sick leave, such as, an employee went to a hospital and registered for an appointment with the doctor, however, he left after got the registration receipt; an employee brought a fake sick leave certificate; or an employee asked for sick leave regarding his back pain continually. In order to eliminate the fake sick leave, many enterprises require employees to submit documents related to sick leave in their rules and regulations. Those documents including registration receipts, sick leave certificates, medical records, drug lists, inspection reports, hospitalization summaries, etc., by which the…

Recently, we received a consultation from company A, stating that its counterparty had breached the contract, whether they could “Tanking”? For example, they can suspend the supply. When there is an economic downturn, defaults become common. Many companies may have the same concern as company A. From the perspective of litigation, such concern involves the issue of fulfilling the First Performance of the Right of Defense. Article 526 of the “Civil Code” stipulates that, “Where both parties have obligations towards each other and there is an order of priority in respect of the performance of the obligations, and the party…

A company with a longer history may have more senior managers who are going to retire. The successors are ambitious. As the old saying goes, “There is a radish in every pit”, so there must be conflicts of interest between those senior managers and their successors. In Japan, many companies implement a “fixed service year system”, which means that companies would adjust the positions of those senior managers from the management positions to the assistant positions or other specialized positions. The purpose is to vacate the “pit”, allowing the successors to have longer time to take over relevant responsibilities. Then,…

Mr. Wong invested in his friend’s company many years ago. The company has not made any profit for those years. Wong did not care, because he only subscribed for 5% of the company’s registered capital, which is not a real loss. Last year, the company’s business license was revoked, but the rest shareholders remained silent. Wong held the opinion that the company’s business license was revoked, which has the same consequence as a person’s death, the shareholders would only bear the limited liability equal to their subscribed capital contribution, for him, the maximum loss would be CYN 50,000. Unexpectedly, Wong…

Among all kinds of labor disputes, the retirement dispute is the fewest. However, there are many details regarding the management of retirement. Here is a Q&A list for those details for reference. (* The retirement age is a complicated topic, and we have analyzed in the previous article, so this list will not mention this topic.) Q1: When will a labor contract of a retiring employee be terminated? A1: There are two choices, that is, an employee enjoys basic pension insurance benefits or reaches retirement age. However, when an employee reaches retirement age before he/she could enjoy basic pension insurance benefits, can…

Miss A ordered a piece of furniture at a store. The next day, the store called and begged her to modify the order with the reason that, “the furniture ordered by Miss A is an old model which has been just sold out, there is a similar new model at the same price.” Miss A refused the store’s suggestion and planned to cancel the order. Coincidentally, Miss B also ordered a piece of furniture at the same store, and she even paid a prepayment. Later, Miss B wanted to cancel the order, but the store refused Miss B’s cancellation and…

There are 5 main circumstances that a company may claim for compensation against an employee. The circumstances are, (1) the employee brings damage to the company’s property; (2) the employee infringed a third party’s rights while working, and the company has compensated the third party; (3) the employee infringes the company’s trade secrets; (4) the employee embezzles the company’s property; and (5) the company has undertaken expenses which are not employer’s responsibilities, such as the company overpays for social security, or pays medical expenses first for the employee. If the company claims for compensation from the perspective of employment, the…