A South Korean worker and a Chinese tech company settled a labor dispute via remote mediation in Shaanxi, resulting in RMB 40,000 in compensation paid within 15 days.
Tags:Source: OT-Team(G), 法治日报
A labor dispute between a South Korean worker and a Chinese technology company has been settled through remote mediation, with the company ultimately agreeing to pay more than RMB 40,000 (about US$5,600) in compensation.
According to Legal Daily, the case was handled by the Xixian New Area People’s Court in Shaanxi Province.
In July 2023, Mr. Kim, a South Korean national, signed a five-month employment contract with a technology company in Shaanxi. When the contract expired, the two sides did not sign a new written agreement, but Kim continued working for the company.
He remained with the company until July 2025, when he left for personal reasons and returned to South Korea.
The dispute emerged after his departure. Kim sought additional compensation over the failure to sign a written employment contract. After several rounds of communication failed to resolve the matter, he applied for labor arbitration.
The arbitration ruling required the company to pay more than RMB 200,000 in additional compensation. The company rejected the ruling and took the dispute to the Xixian New Area People’s Court.
The case presented challenges on both sides. Kim was in South Korea and was unfamiliar with China’s labor arbitration and judicial procedures, while the company maintained that its employment practices were compliant. It also argued that Kim’s claim had exceeded the applicable arbitration limitation period and questioned both the compensation claim and the amount sought.
Rather than allowing the dispute to become a lengthy cross-border legal process, the two sides were brought into a series of remote mediation sessions.
Through video calls, Kim was given explanations of how labor arbitration and court proceedings are connected in China, as well as the rules concerning limitation periods and relevant wage and industry standards. He was also informed that Chinese law protects the lawful rights and interests of foreign workers on an equal basis.
At the same time, discussions with the company focused on the circumstances surrounding the employment relationship, including Kim’s contribution as a high-tech professional, the importance of having a written employment contract, the potential compensation obligations arising from the lack of one, and the company’s actual operating situation.
At first, neither side was willing to give much ground. As the discussions continued, however, the parties gradually moved away from their initial positions and began considering a negotiated settlement.
To further reduce the cost and inconvenience of participating from overseas, the court used its online “Shared Court” platform to conduct remote mediation. Kim joined from South Korea, while the company participated from China.
During the online sessions, the parties went through the disputed issues one by one and discussed possible solutions. With the key legal issues clarified and both sides given an opportunity to explain their positions, the dispute gradually moved toward a settlement.
The parties eventually reached an agreement during the proceedings.
Considering that the applicable arbitration limitation period had expired, along with factors including the costs of continued litigation, Kim’s contribution to the company and the company’s operating conditions, the two sides agreed that the company would pay Kim more than RMB 40,000 in compensation.
The cross-border labor dispute was settled within about one month.
The company subsequently fulfilled the agreement, paying the compensation to Kim within 15 days of the mediation settlement.
The case thus ended without the need for prolonged cross-border litigation, with both sides reaching a settlement through online mediation.
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