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Labor Contract Law

If an Employer violates this Law by seizing property from an employee as security or under some other guise, the labor administrative department shall order the same to be returned to the employee within a specific period of time and impose a fine on the Employer of not less than RMB 500 and not more than RMB 2,000 for each person; the Employer shall be liable for damages for any harm or loss caused to the employee as a result thereof. 

If an Employer retains an employee's file or property after the employee has terminated or ended the labor contract in accordance with the law, punishment shall be imposed in accordance with the provisions of the preceding paragraph. 

Article 85 If an Employer falls into any of the following circumstances, the labor administrative department shall order the Employer to pay labor remuneration, overtime wages or financial compensation within a specific period of time. If the labor remuneration is lower than the local minimum wage rate, the Employer shall pay the shortfall; if the payment is not made within the time limit, the Employer shall be ordered to pay extra damages to the employee at a rate of not less than 50% and not more than 100% of the amount payable. 

(1) failing to pay an employee his labor remuneration in full and on time as stipulated in the labor contract or as prescribed by the State;

(2) paying an employee labor remuneration below the local minimum wage rate;

(3) failing to pay overtime wages despite the arrangement for overtime work; or

(4) revoking or terminating a labor contract without paying the employee financial compensation pursuant to this Law. 

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