Theme Education Activity on "Promoting Justice and Building Core Values through Openness"

Typical Cases of Delayed Labor Remuneration

catalogue

1. Case of Wang Fengsheng Refusing to Pay Migrant Workers' Wages

2. Xu Chenghai's Refusal to Pay Labor Remuneration Case

1、 Case of Wang Fengsheng Refusing to Pay Migrant Workers' Wages

（1） Basic facts of the case

In June 2010, a construction company in Huludao signed a contract with a certain group to undertake the construction of six residential buildings in a community in Longgang District, Huludao City. The defendant Wang Fengsheng, as the project leader of a certain construction company, undertook the construction project of Building 15 in the residential area. Wang Fengsheng successively found Liu (mechanical worker), Yue (laying worker), Qiao (loose water worker), Tian (plumbing worker), Man (plastering and bricklaying worker), Yu (external wall insulation worker) and others, and immediately began construction. The project was completed in October 2011, during which Song, the person in charge of a construction company, paid more than 20 payments to Wang Fengsheng in cash, transfer, and other ways, with a total amount of over 2.3 million yuan. After the completion of the project, Wang Fengsheng changed his phone number and lost contact. The workers searched for Wang Fengsheng multiple times, but Wang Fengsheng evaded the workers with words such as "I don't have any money now" and "Party A hasn't settled the bill", refusing to pay the salary. Later, Wang Fengsheng lost contact again after writing IOUs to some workers. Due to the inability to settle between a certain group and a certain construction company (the 15th building project undertaken by Wang Fengsheng), a certain group announced the above situation in Huludao Daily on January 16, 2013. However, due to the inability to locate Wang Fengsheng, the project was unable to be settled. According to the verification of the Longgang District Labor Supervision Brigade, Wang Fengsheng has owed workers over 500000 yuan in wages. On January 13, 2014, the Labor Supervision Brigade of Longgang District Human Resources and Social Security Bureau issued a "Decision on Labor and Social Security Supervision Order to Correct" to a construction company, ordering them to pay wages. On January 22, a construction company paid Liu and Yu salaries of 100000 yuan and 50000 yuan respectively. After being arrested, the defendant Wang Fengsheng confessed to the criminal fact that he concealed and transferred the project payment by changing his phone number, evading payment, and refusing to pay the labor remuneration of the workers. However, there were objections to the amount owed. After Wang Fengsheng checked and reconciled with the above-mentioned workers one by one, he owed Liu 178500 yuan (a construction company had already paid 100000 yuan), Yue 10000 yuan, Qiao 4000 yuan, and Tian 30000 yuan, I owe a total of 60000 yuan to XXX and 65000 yuan to XXX (a construction company has already paid 50000 yuan), and I owe a total of 347500 yuan in wages to my employees. In December 2014, a construction company in Huludao fully paid this amount.

（2） Judgment results

After trial, the People's Court of Longgang District, Huludao City found that the defendant Wang Fengsheng, as the project leader under the name of a certain construction company, was the actual subject of workers' wages payment. After receiving the project payment, he fled and refused to pay the overdue wages of workers. The Labor Supervision Brigade of Longgang District Human Resources and Social Security Bureau issued and delivered the "Labor Security Supervision Order to Correct Decision" to a certain construction company, The defendant Wang Fengsheng, as the project leader of a certain construction company, was unable to find the defendant Wang Fengsheng due to his hiding behavior after receiving the order to correct the situation. It should be considered that the decision has been delivered to the defendant Wang Fengsheng. The defendant, Wang Fengsheng, evaded payment of labor remuneration to the workers through hiding, and the amount was relatively large. Despite being ordered by relevant government departments to pay, the defendant still did not pay, which constitutes the crime of refusing to pay labor remuneration. The prosecution's charges are correct and should be confirmed. Given that the defendant Wang Fengsheng voluntarily pleaded guilty and had already been paid the wages of workers by a certain construction company before the prosecution, a lighter punishment could be imposed. According to Article 276-1 and Article 52 of the Criminal Law of the People's Republic of China, the defendant Wang Fengsheng was convicted of refusing to pay labor remuneration and sentenced to one year and six months in prison, with a fine of RMB 100000.

（3） Typical significance

For a period of time, the phenomenon of some local employers refusing to pay workers' labor remuneration has been quite prominent, and the majority of workers, especially migrant workers, have become the main victims of refusing to pay labor remuneration. The Criminal Law Amendment (8) added the crime of refusing to pay labor remuneration. Courts at all levels attach great importance to using legal means to punish those who refuse to pay labor remuneration, and conscientiously implement the provisions on the crime of refusing to pay labor remuneration. Punishing the crime of refusing to pay labor remuneration in accordance with the law has played an important role in safeguarding the legitimate rights and interests of workers and promoting social harmony and stability.

2、 Case of Xu Chenghai Refusing to Pay Labor Remuneration

（1） Basic facts of the case

In 1999, the defendant Xu Chenghai invested with Lin Dianjie and Cui Shuxia to establish Jilin Jinma Industrial Co., Ltd., which mainly engages in wholesale and retail of daily necessities. The defendant Xu Chenghai made an external investment and registered Jilin Dade Investment Co., Ltd. with Zhang Jianjun on October 22, 2008. The legal representatives of both companies are the defendant Xu Chenghai.

In November 2008, Leng Shukui, an investor in Shengcai Coal Mine in Jiaohe City, approached the defendant Xu Chenghai to invest in his coal mine. On November 18 of the same year, Leng Shukui served as the legal representative of the first party, Jiaohe Shengcai Coal Mine, Xu Chenghai represented Dade Investment Co., Ltd. as the second party, and Dade Company's shareholder Zhang Jianjun as the third party. The three parties signed a "Cooperation Agreement", with the first party contributing 12 million yuan to the renovation and mining of the Shengcai Coal Mine in Jiaohe City, along with all fixed assets and large equipment and materials. The profit shall be distributed at a ratio of 47% to Party A, 45% to Party B, and 8% to Party C. The cooperation period shall be from the date of the first payment of funds by Party B and Party C to the cessation of resource depletion in the mining area.

On May 16, 2011, the three parties signed a "Termination of Cooperation Agreement", in which Party A and Party C abandoned Shengcai Coal Mine and operated it solely by Party B's Dade Company. Party B compensated Party A with 10000 tons of raw coal and 300000 yuan in cash. If Party A cannot fully purchase 10000 tons of raw coal within two years, the ownership of the coal mine belongs to both parties. In December 2011, more than 339000 yuan of wages were owed to 174 workers, including Hou Jianfeng and Zhang Guangqiu. The municipal government borrowed and distributed more than 290000 yuan to the workers (some of whom will receive them in the future). In August 2012, the Jiaohe City Labor Supervision Brigade ordered him to pay the unpaid wages of workers, but Xu Chenghai refused to pay the wages of workers by hiding.

From May 2011 to the end of 2012, the defendant Xu Chenghai operated Jilin Dade Investment Co., Ltd. and Jilin Jinma Industrial Co., Ltd., which owed more than 380000 yuan in wages to 11 employees of the company, including Lin Dianjie, Zhang Yang, Liang Zhiqiang, and Sun Mingyan. On March 28, 2013, the Labor Supervision Detachment of Jilin City ordered it to pay the unpaid wages of workers, and Xu Chenghai refused to pay the wages of workers by hiding.

（2） Judgment results

After trial, the People's Court of Jiaohe City, Jilin Province found that the defendant Xu Chenghai refused to pay the wages owed to the workers during his actual operation of the Shengcai Coal Mine in Jiaohe City, as well as the wages of the employees of Jilin Dade Investment Co., Ltd. and Jilin Jinma Industrial Co., Ltd. who were legal representatives, in a large amount. Despite being ordered by the labor supervision authority to pay, he still did not pay. His behavior has constituted the crime of refusing to pay labor remuneration. According to the relevant provisions of the Criminal Law, the defendant Xu Chenghai was sentenced to one year in prison and a fine of RMB 70000 for refusing to pay labor remuneration.

（3） Typical significance

The issue of defaulting on the wages of migrant workers has once become a hot topic of social concern. Amendment 8 of the Criminal Law includes the crime of "refusing to pay labor remuneration" in the criminal law. After several years of crackdown, great achievements have been made, but such crimes still occur from time to time. As a business operator, one should operate legally and with integrity. When difficulties arise in business operations, one should face them correctly and solve them properly, rather than resort to evasive methods. The defendant in this case suffered losses due to poor management, but fled, resulting in a large number of workers' labor remuneration being unable to be paid, and the amount was relatively large. His behavior constitutes the crime of refusing to pay labor remuneration, but has not yet caused serious consequences. According to Article 276-1 of the Criminal Law, a person shall be sentenced to fixed-term imprisonment of not more than three years or criminal detention, and shall also, or shall only, be fined. This case sentenced the defendant to fixed-term imprisonment while also imposing a fine, demonstrating the crackdown of the criminal law.