Foreigner Promised Bonus, But It’s Gone—Can He Get It Back?

Source: OT-Team(G), 广州市中级人民法院

The Guangzhou Intermediate People's Court has recently published a case involving a foreign labor dispute.

In this case, K, a foreign employee, joined a trading company as a manager on June 1, 2019. The two parties signed an employment contract, specifying that K's salary would consist of a base wage plus various allowances, paid monthly via bank transfer. The trading company is a wholly owned subsidiary of a shipping company, and Li, the legal representative of the shipping company, is also the sole shareholder.

On November 28, 2022, Li informed K via WeChat that, due to the strong performance of the trading company, a special bonus would be awarded to K. Li also sent an email to the finance department of the trading company, instructing them to issue the bonus to K. However, the bonus was never paid.

In October 2023, K resigned from the company and later filed a lawsuit, demanding the company pay the promised bonus.

The court explained that Li, as the actual controller of the trading company, had instructed the finance department to issue the bonus and clearly identified K as the recipient. Considering the company's past bonus distribution practices, the court concluded that Li's actions could be interpreted as the company's official intent. Furthermore, the bonus was directly linked to the company's profits and K's performance as a manager, categorizing it as labor compensation rather than a gift. Given that the conditions for issuing the bonus had been met, the court determined that the company was legally obligated to pay it.

This case is a typical example of the protection of foreign workers' rights in China. Under the "Regulations on the Administration of Employment of Foreigners in China," foreign workers are entitled to legal protections regarding minimum wage, working hours, rest and leave, and labor safety and health.

The publication of this case underscores the importance of safeguarding the employment rights of foreign talent, bolstering market confidence in China's legal environment, and encouraging more foreign workers to contribute to the country's economic development.