Viewpoint | Research (II) on Disputes over Year-end Awards


Published:

2022-12-15

The agreement of the year-end bonus usually has the following forms: (1) If the labor contract does not stipulate or the rules and regulations do not stipulate the year-end bonus, the employer is not required to issue the year-end bonus to the worker. This is the due meaning of the principle of "agreed priority" in the distribution of year-end awards. The distribution of year-end bonuses is not the legal obligation of the employer. As a means of motivating workers, the employer has a certain degree of autonomy. Shanghai No.1 Intermediate People's Court (2014) Shanghai No.1 Zhongmin San (Min) Zhongzi No. 1511 Civil Judgment held that a Tibetan army advocated that a company should have a clear agreement with a company to pay year-end bonus every year. Now a Tibetan army and a company have no written agreement on the payment of the above bonus, and have not provided a company with a written stipulation on the need to pay employee bonus, therefore, a Tibetan army believes that a company's promise to pay a fixed year-end bonus lacks evidence and does not support it. (2) If the labor contract does not stipulate the year-end bonus and the rules and regulations do not stipulate the year-end bonus, but there is a special agreement on the distribution of the year-end bonus, the special agreement on the distribution of the year-end bonus shall be observed. The special agreement for the payment of year-end bonuses is a written agreement reached by both parties to the labor relationship on the basis of equality and consultation. As long as the agreement does not violate the mandatory provisions of laws and administrative regulations, it should be observed and implemented. The Beijing Higher People's Court (2015) Gao Min Shenyu Civil Judgment No. 02898 held that the "Wage Agreement" was voluntarily signed by a law firm and Di Moukai, and did not violate the mandatory provisions of laws and administrative regulations. The current Di Moukai claims that the "Wage Agreement" clause on early resignation without year-end bonus is invalid and insufficient basis. The "Salary Agreement" stipulates that a law firm will evaluate Di Moukai's work throughout the year from January 1 to 31, 2014. Di Moukai resigns before the year-end bonus evaluation and will not issue the year-end bonus. However, Di Moukai resigned on December 2, 2013. Therefore, according to the agreement of the Salary Agreement, the ownership of a certain law does not issue Di Moukai's year-end bonus. The reason for resignation filled in by Di Moukai in the "Employee Resignation Registration Form" is personal. According to law, a law firm should not pay Di Moukai economic compensation for the termination of the labor contract. The original judgment did not support Di Moukai's claim, which was not improper. (3) If the labor contract stipulates the year-end bonus or rules and regulations, but does not stipulate or stipulate the payment conditions or payment standards, the employer shall pay the year-end bonus in full or pay the year-end bonus according to the amount of previous years. If the employer does not stipulate the payment conditions, it is deemed that the laborer receives the year-end bonus without any additional conditions; if the year-end bonus is not specified, the year-end bonus shall be paid in full amount, however, if it is not possible to determine the amount to be issued, it may be issued based on the amount of previous years. (4) If the labor contract or rules and regulations stipulate the year-end bonus and its payment conditions and payment standards, the employer shall issue the year-end bonus in accordance with the agreement or regulations. If both parties have made specific agreements on the payment of the year-end bonus, they shall abide by the relevant agreement. The employer shall not refuse to pay the year-end bonus on conditions not agreed or stipulated in advance. Shanghai No.1 Intermediate People's Court (2014) Hu Yi Zhong Min San (Min) Zhong Zi No. 1310 Civil Judgment holds that the main reason why an insurance company advocates not to pay Miao Mou Gang's 2012 year-end bonus is that the company has not completed the targets issued by the group and all employees have not paid year-end bonus, but the interim measures formulated and implemented by an insurance company clearly stipulate that the total annual bonus for management sequence employees shall not be less than twice the monthly basic salary, however, it is not stipulated that the payment of the year-end bonus is based on the company's completion of the annual target issued by the group, and an insurance company has not provided evidence in the lawsuit to prove that the actual payment of the year-end bonus over the years is based on the company's completion of the annual target issued by the group. Therefore, the original trial confirmed that an insurance company should pay its 2012 annual bonus at twice the monthly basic salary of Miao Mougang, which is not inappropriate.

The agreement of the year-end bonus usually has the following forms:

 

(1) If the labor contract does not stipulate or the rules and regulations do not stipulate the year-end bonus, the employer is not required to issue the year-end bonus to the worker.This is the due meaning of the principle of "agreed priority" in the distribution of year-end awards. The distribution of year-end bonuses is not the legal obligation of the employer. As a means of motivating workers, the employer has a certain degree of autonomy. Shanghai No.1 Intermediate People's Court (2014) Shanghai No.1 Zhongmin San (Min) Zhongzi No. 1511 Civil Judgment held that a Tibetan army advocated that a company should have a clear agreement with a company to pay year-end bonus every year. Now a Tibetan army and a company have no written agreement on the payment of the above bonus, and have not provided a company with a written stipulation on the need to pay employee bonus, therefore, a Tibetan army believes that a company's promise to pay a fixed year-end bonus lacks evidence and does not support it.

 

(2) If the labor contract does not stipulate the year-end bonus and the rules and regulations do not stipulate the year-end bonus, but there is a special agreement on the distribution of the year-end bonus, the special agreement on the distribution of the year-end bonus shall be observed.The special agreement for the payment of year-end bonuses is a written agreement reached by both parties to the labor relationship on the basis of equality and consultation. As long as the agreement does not violate the mandatory provisions of laws and administrative regulations, it should be observed and implemented. The Beijing Higher People's Court (2015) Gao Min Shenyu Civil Judgment No. 02898 held that the "Wage Agreement" was voluntarily signed by a law firm and Di Moukai, and did not violate the mandatory provisions of laws and administrative regulations. The current Di Moukai claims that the "Wage Agreement" clause on early resignation without year-end bonus is invalid and insufficient basis. The "Salary Agreement" stipulates that a law firm will evaluate Di Moukai's work throughout the year from January 1 to 31, 2014. Di Moukai resigns before the year-end bonus evaluation and will not issue the year-end bonus. However, Di Moukai resigned on December 2, 2013. Therefore, according to the agreement of the Salary Agreement, the ownership of a certain law will not issue Di Moukai's year-end bonus. The reason for resignation filled in by Di Moukai in the "Employee Resignation Registration Form" is personal. According to law, a law firm should not pay Di Moukai economic compensation for the termination of the labor contract. The original judgment did not support Di Moukai's claim, which was not improper.

 

(3) If the labor contract stipulates the year-end bonus or the rules and regulations stipulate the year-end bonus, but the payment conditions or payment standards are not agreed or stipulated, the employer shall pay the year-end bonus in full or pay the year-end bonus according to the amount of previous years. If the employer does not stipulate the payment conditions, it is deemed that the laborer receives the year-end bonus without any additional conditions;If the base number of year-end bonus has been stipulated, but no calculation standard has been stipulated, the year-end bonus shall be paid in full; if only the year-end bonus is agreed, but the amount to be paid cannot be determined, it can be paid according to the amount of previous years.

 

(4) If the labor contract or rules and regulations stipulate the year-end bonus and its payment conditions and payment standards, the employer shall issue the year-end bonus in accordance with the agreement or regulations. If both parties have made specific agreements on the payment of the year-end bonus, they shall abide by the relevant agreement.The employer shall not refuse to pay the year-end bonus on conditions not agreed or stipulated in advance. Shanghai No.1 Intermediate People's Court (2014) Hu Yi Zhong Min San (Min) Zhong Zi No. 1310 Civil Judgment holds that the main reason why an insurance company advocates not to pay Miao Mou Gang's 2012 year-end bonus is that the company has not completed the targets issued by the group and all employees have not paid year-end bonus, but the interim measures formulated and implemented by an insurance company clearly stipulate that the total annual bonus for management sequence employees shall not be less than twice the monthly basic salary, however, it is not stipulated that the payment of the year-end bonus is based on the company's completion of the annual target issued by the group, and an insurance company has not provided evidence in the lawsuit to prove that the actual payment of the year-end bonus over the years is based on the company's completion of the annual target issued by the group. Therefore, the original trial confirmed that an insurance company should pay its 2012 annual bonus at twice the monthly basic salary of Miao Mougang, which is not inappropriate.

 

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