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    The Situation That The Employer And The Worker Can Agree On The Liquidated Damages Together.

    2015/10/30 23:09:00 22

    EmployerWorkerLiquidated Damages

    If a laborer violates the stipulations of the competition restriction, he shall pay liquidated damages to the employer in accordance with the contract.

    Mr. Li, a graduate student in a university, entered a company after graduation.

    When Mr. Li was in office, the company settled the procedures for entering Beijing, and agreed on three years' service period and the corresponding penalty.

    Second years after joining the office, Mr. Li proposed leaving the office and relieved labor relations, but the company did not pfer the files to Mr. Li.

    Mr. Li sued the company for file pfer procedures, and the company asked Mr. Li to pay a breach of contract for breach of the service period.

    In the trial, the company claimed that when Mr. Li entered the office, the company settled the procedures for entering Beijing, and the two sides agreed on the three years' service period and the corresponding penalty for breach of contract.

    Before Mr. Li paid the liquidated damages, the company did not have to deal with Mr. Li for the file pfer procedure.

    To this end, the company submitted a letter of commitment signed by Mr. Lee when he joined the office.

    One of them is: "Mr. Li is a fresh graduate enrolled by the company, and I have signed the three year labor contract with the company to complete the procedures for settling in Beijing. Now I solemnly promise that I will strictly fulfill this requirement.

    Labor contract

    For any reason, if I fail to fulfill the term of the labor contract, I agree to pay the company's economic loss and breach of contract damages.

    In this regard, Mr. Lee endorsed "

    Letter of undertaking

    "Authenticity", but does not recognize the purpose of proof.

    According to the court's trial, Mr. Li and the company had no objection to the fact that the labor relations between the two sides had been lifted, so the Court confirmed the fact.

    According to the fiftieth provision of the labor contract law, the employing unit shall, within fifteen days after the termination or termination of the labor contract, pfer the files and social insurance relations to the laborers, so the company shall file the pfer procedures for Mr. Li according to law.

    With regard to the issue of liquidated damages, the relevant labor laws and regulations in China clearly stipulate that in addition to violating the terms of service stipulated in the training agreement and in violation of the obligation of prohibition of competition, the employer shall not stipulate that the employer shall bear the penalty for breach of contract.

    Therefore, the agreement on breach of contract due to the procedures for settling in Beijing is invalid in violation of relevant laws and regulations.

    Finally, the court did not support the company's request for payment of liquidated damages.

    According to China's labor contract law, the situation that employers and workers can agree on liquidated damages is only limited to two situations: special training and competition restriction.

    First, employing units to provide special training expenses for workers, and if they engage in professional and technical training, they may conclude an agreement with the worker and agree on the term of service.

    If a worker violates the stipulations of the service period, he shall pay liquidated damages to the employer in accordance with the contract.

    The amount of penalty shall not exceed the training fee provided by the employer.

    The liquidated damages paid to the laborers by the employer shall not exceed the training expenses that should be apportioned in the part of the service period that has not yet been fulfilled.

    Secondly, the employer can stipulate the competition restriction clause in the labor contract or confidentiality agreement with the laborers who have the obligation of confidentiality, and stipulate that the laborer will give the laborers economic compensation within the time limit of the competition according to the termination or termination of the labor contract.

    Therefore, in addition to the above statutory circumstances,

    Employing unit

    No liquidated damages shall be agreed with the workers.

    In this case, the two sides signed a letter of undertaking for settling the procedures for entering Beijing, and thus agreed that breach of contract for breach of service period, which violated labor laws and regulations, should be invalid.

    Therefore, the court's request for equipment company was not supported.


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