The case of X Ai Hospital v. Sun X over labor contract dispute
The case of X Ai Hospital v. Sun X over labor contract dispute
[Keywords]
civil, validity of foreign-related labor contract, illegal termination of contract
[Case summary]
Sun X, British citizen and member of the Royal College of Pediatrics and Child Health, has practiced many years in the UK, and has over the past decade been working with Chinese and British hospitals in the departments of pediatric diabetes, internal medicine and pediatrics, respectively. After many rounds of negotiation, X Ai Hospital signed with Sun X a Labor Contract on June 19, 2021, and hired Sun X at a monthly salary of 100,000 yuan for working in Qionghai Bo’ao Lecheng International Medical Tourism Pilot Zone. And X Ai Hospital should handle for him the Application Form for Foreigner’s Work Permit and Short-Term Practice Permit for Foreign Physicians in China before he joined the hospital. The Medical Institution Practice License of X Ai Hospital bears its medical service scope as internal medicine and endocrinology. Sun X’s Short-Term Practice Permit for Foreign Physicians in China restricts his clinical practice to “working in the internal medicine department of XX international hospital”. Sun X joined X Ai Hospital on June 19, 2021 in the capacity of medical supervisor and took overall charge of the hospital’s medical works. While working with the hospital, Sun X treated basically child patients. X Ai Hospital has paid Sun X his salary between June 2021 and November 2021, a total of 453,693.64 yuan. On December 22, 2021, X Ai Hospital served a Notification of Termination of Labor Contract to Sun X, saying, “Sun X, as you take possession of the company’s business license, medical institution practice permit and other major certificates without the authorization of the company, and you have failed so far to obtain a lawful practice qualification… the company hereby decides: 1, to terminate the labor relationship with you as of December 22, 2021; and 2, request you to return the certificates above immediately to the company…”. Sun X signed the receipt of the notice. The same day, X Ai Hospital and Sun X signed and stamped the Application Form for the Deregistration of Foreigner’s Work Permit, where the ticked cause was “Termination of Employment Contract”. And Sun X has stopped working there every since.
On January 30, 2022, Sun X applied to Qionghai Labor Dispute Arbitration Commission for labor arbitration, and X Ai hospital submitted an arbitration counterapplication. The said arbitration commission did not make out any award within the time limit, and notified the parties to bring the dispute to the people’s court.
X Ai Hospital requested the people’s court to affirm the Labor Contract invalid, and to order Sun X to return the excess salary of 268,181.8 yuan over the other physicians of the hospital. Sun X lodged a countersuit, requesting the people’s court to terminate the Labor Contract, and to order X Ai Hospital to pay him the salary after December 16, 2021, a compensation and the lawyer’s fees.
[Verdict]
The court affirmed that the Labor Contract was terminated on December 22, 2021, ordered that X Ai Hospital pay to Sun X the salary of 73,563.22 yuan for the period of December 1 to 22, 2021, a compensation of 44,089.5 yuan, and the lawyer’s fee of 10,000 yuan, and that Sun X assist the hospital with the deregistration of work permit, and rejected the other requests of the two parties. After the judgement took effect, the court, learning that Sun X, failing to obtain resignation documents from X Ai Hospital, found it impossible to handle employment formalities, actively coordinated the two parties, outside the litigation, to invoke the “human harmony” philosophy and handle between them the resignation formalities, making it possible for Sun X to find jobs elsewhere, completing the case once for all, and promoting the substantive resolution of the dispute.
[Significance]
Business prospers with talents and talents drive prosperous business. Talents are the most important resources as well as the most critical power to boost economic development and comprehensive strength. To build a law-based, international, convenient business environment in Hainan Free Trade Port, talents with global vision are indispensable. To attract more and more high-level professionals, Hainan Free Trade Port need create a premium environment, both hard and soft, and a fair, transparent, efficient judicial service is a critical component of the soft environment. This case involves foreign-related labor dispute. During the trial of the case, the court adhered to the principle of equal protection to ensure equality of the Chinese and foreign parties in litigation status and rights, application of law, and legal protection, adhered to the concept of combining mediation with adjudication, and diversified, substantive dispute resolution, and took the initiative to contact the administration of Bo’ao Lecheng International Medical Tourism Pilot Zone, where the hospital is located, for joint mediation. After the mediation failed, the court started investigation by law, prudently verified the facts and medical backgrounds, evaluated the impact of information collection ability, information transparency and the degree of information disclosure upon foreign labor and local employer, and made out fair determinations on the liabilities of the parties in contract performance. Based on sufficient inquires, the court made out a negative judgment on the employer’s illegal termination of contract, which effectively ensured the legitimate rights and interests of the foreign labor on salaries, compensations and reasonable lawyer’s fees. This type of foreign-related labor disputes, if justly, effectively and properly handled, will boost the confidence of various professionals in the employment environment and the rule of law in Hainan Free Trade Port, and attract more talented people to work or start businesses in Hainan.
