Liaoning company rules annual bonus and annual leave 2 choices 1, court: violation of labor Law

2022-07-18 0 By

Liaoning Fushun a company formulated a “Year-end bonus Management Measures” and “Welfare Management Measures”, which stipulates that employees to get “year-end bonus” and welfare, need to meet the conditions of “annual leave”;At the same time, the year-end bonus shall be the monthly average salary of the previous year. If the accumulated sick leave exceeds 15 days, one month shall be deducted in the calculation of the total performance of the 12 months.After retiring in February 2020, Mr. Liu, an employee of the company mentioned above, complained to fushun Labor Supervision Bureau about the company’s failure to implement the national annual leave compensation.After the supervision bureau issued the Supervision and Rectification Directive, the company paid 3,172.41 yuan as compensation for Liu’s unused annual leave in 2018.In 2018, the company had given Mr. Liu a “year-end bonus” of 3,050 yuan for not taking a vacation, and repeatedly asked him to return the bonus he had received, the latter refused to return, the company then filed a lawsuit, asking the court to return Mr. Liu 2018 “year-end bonus”.In 2021, the Xinfu District Court of Fushun city made a first-instance judgment rejecting the company’s lawsuit.The company appealed to the Fushun Intermediate Court.Recently, China Adjudication documents website published the second trial of the case, fushun Intermediate Court made a final judgment on January 17 this year: rejected the appeal, uphold the original judgment.Do not implement worker system of annual vacation for a long time, the company said the company reply for year-end bonus as compensation, according to their retail mall is the largest local residents, except rest every year the Spring Festival, the first to fifth closed shop, the mall to open for business, most of the staff so give up vacation time, stick to the work, to ensure the normal operation of mall.For a long time, the company has not implemented the annual leave system.In view of this, the company formulated the “Welfare Distribution management Measures”, “Year-end reward management Measures”, the provision of year-end reward and spring break during the vegetable gold and other benefits, to give a certain amount of compensation to employees who did not take annual leave.According to the Year-end Bonus Management Measures formulated by the company on December 10, 2015, “I. Scope of year-end bonus payment: 1. Employees who do not take annual leave due to the operation and production of the enterprise.2. Personnel on the job (personnel in the payroll and retirees in the current year).1. My average monthly salary of the previous year will be used as year-end bonus, which will be assessed and calculated in 12 months.2. According to the annual attendance assessment, one month’s amount will be deducted from the accumulated sick leave of one month;If the accumulated leave exceeds half a month, one month will be deducted;Those enjoying annual leave are not subject to these administrative measures.”According to the Measures for the Administration of Welfare Provision formulated on December 31, 2015, “The payment of vegetable and gold (welfare during the Spring Festival) : 1. According to the annual attendance assessment, the payment will be divided into 12 equal parts, that is, if the monthly attendance is less than two thirds, one part will be deducted.2. Temporary workers and probationary staff (subject to the issuing time) will not be issued.3. No payment will be made to retirees (who have left their posts).4. Annual leave will not be granted to those who enjoy it.”According to the content of the company’s defense, the system of “two options for annual leave and year-end reward” has been implemented until now.Mr. Liu retired from the above company in February 2020.Because he/she did not take annual leave in 2018, the company will pay him/her 3050 YUAN as compensation in the form of “year-end bonus and vegetable gold” (year-end bonus 2550 yuan + Spring Festival vegetable gold 500 yuan).After retirement, he complained to fushun Labor Supervision Bureau, reflecting that the company did not implement the national annual leave compensation problem.On November 5, 2019, fushun Municipal Labor Supervision Bureau issued a labor security supervision and rectification instruction to the company, instructing the company to change the compensation method for employees who did not take annual leave, and to make implicit compensation into explicit compensation.In July 2020, the company paid Mr. Liu RMB 3,172.41 for his “unused annual leave compensation” in 2018.The company believes that Liu has already received two compensations for his unused annual leave in 2018, and according to the company’s regulations, annual leave and year-end benefits such as bonuses cannot be combined.Therefore, the company repeatedly asked Mr. Liu to return the 2018 year-end bonus and year-end welfare, a total of 3,050 yuan, which the latter refused to return.The court found that the company’s provision of “two options” between annual leave and year-end benefits violated the Labor Law, so the company filed a lawsuit to the Xinfu District Court in Fushun city, requesting the defendant, Mr. Liu, to return the previous compensation for year-end bonuses.The court issued a first-instance ruling in 2021 dismissing the company’s claim.The company appealed to the Fushun Intermediate Court.Mr. Liu believes that the company’s welfare distribution methods and year-end bonus management methods are seriously illegal.Article 5 and Article 7 of regulations on Annual Leave for Employees and Article 10 of Measures for Implementation of Paid Annual Leave for Enterprise Employees provide that when annual leave is not taken, the company shall pay 300% of salary to employees and other benefits shall not be used instead.The benefits such as salary and remuneration for unused annual leave in 2018 that he received are legally obtained.After his retirement, he complained to fushun Labor Supervision Bureau in accordance with the law, which issued rectification instructions to the company after investigation, requiring the company to pay Mr. Liu for his annual leave in 2018.Mr. Liu also mentioned that the company illegally deducted 8,400 yuan from its year-end bonus on the grounds that it had caused adverse effects to the company by complaining to labor supervision in accordance with the law.Mr. Liu sued, and on June 3, the Xinfu District Court ordered the company to pay Mr. Liu the dividend.The court of second instance held that the company bound the employee’s annual bonus and other benefits with the right to annual leave, and had to give up the right to take annual leave if it wanted to obtain the benefits, which violated the basic legal principle of “Labor Law” to protect the legitimate rights and interests of workers, and the purpose of “Regulations on annual leave for workers” to protect workers to enjoy annual leave.Therefore, the appeal that the company compensates for unused annual leave in the form of year-end rewards and welfare is not supported.The court held that the 3,050 yuan that the company had paid to Mr. Liu belonged to the annual bonus in 2018, while the 3,172.41 yuan paid under the order of the Supervision Bureau belonged to the compensation for unused annual leave in 2018, which were completely different in legal nature and significance and did not belong to the situation of repeated payment.Therefore, the company’s appeal request for Mr. Liu to return 3,050 yuan has no factual and legal basis and cannot be supported.In summary, on January 17, 2022, the court of second instance made the final judgment: the appeal was rejected and the original judgment was upheld.Source: Nine Factions News