Sichuan Province Issues Implementation Rules for Final Arbitration Awards in Labor and Personnel Dispute Cases

Labor dispute cases in Sichuan Province will adopt the "final arbitration award" mechanism, effective from January 20, 2025.

Key Provisions:

1. Article 2
Disputes involving workers’ claims for labor remuneration, injury medical expense (work-related medical expenses), economic compensation, or damages shall be subject to final arbitration awards if the awarded amount for any single claim does not exceed 12 times the local monthly minimum wage.

o "Labor remuneration" includes:

• Normal working hours wages, performance-based pay, allowances, subsidies, bonuses, etc.

• Wages, performance pay, or bonuses tied to task completion or achievement of specific conditions.

o "Work-related medical expenses" include:

• Registration fees, examination fees, treatment fees, laboratory fees, surgery fees, hospitalization fees, and medication costs for work-related injuries (or occupational diseases).

o "Economic compensation or damages" include:

• One month’s wages for termination without 30 days’ prior written notice;

• Non-competition agreement compensation;

• Severance pay for contract termination;

• Double wages under Article 82 of the Labor Contract Law (for failure to sign written or open-ended contracts);

• Compensation for illegal probation periods;

• Damages for unlawful termination;

• Other compensations or damages.

2. Article 3
For claims involving multiple demands, final arbitration applies to individual claims not exceeding 12 times the local monthly minimum wage. The "minimum wage" refers to the standard at the time of the arbitration ruling.

3. Article 4
Disputes over working hours and rest/leave entitlements under national labor standards are subject to final arbitration regardless of the amount:

o "Working hours" disputes: Standard, comprehensive, or flexible working hour systems, and overtime pay disputes.

o "Rest/leave" disputes: Holidays, weekends, annual leave, maternity leave, sick/personal leave, nursing leave, family visit leave, marriage/funeral leave, childcare leave, and compensation for unused leave.

4. Article 5
Disputes over social insurance under national labor standards are subject to final arbitration regardless of the amount:

o Claims for work-related injury benefits, including:
Lump-sum disability grants, employment injury compensation, medical subsidies, meal allowances, nursing fees, disability allowances, assistive device costs, travel/accommodation for non-local treatment, labor capacity assessment fees, lump-sum death benefits, funeral grants, dependent pensions, and wage continuation during injury recovery.

o Claims for losses due to employer’s failure to pay social insurance (e.g., pension, unemployment, maternity, medical, or work-related injury benefits) where the social insurance agency cannot retroactively enroll the worker.