Can employees refuse to be transferred due to business needs and no salary reduction?

Mondo Workplace Updated on 2024-01-30

Yang Yuexin joined a development group company in Shenzhen on April 1, 2020 as a senior manager of exhibition management center planning. The term of the labor contract is from April 1, 2020 to June 30, 2023, and the monthly wage standard is 25,000 yuan.

The "Labor Contract" signed by the two parties stipulates that Yang Yuexin's position can be adjusted due to the needs of the company's production and operation. Employee Handbook 22.7. It is stipulated that any of the following behaviors shall be regarded as a serious violation of the company's rules and regulations and shall be punished for terminating the labor contract: ......3) Refusal to obey the company's work arrangement, and still do not arrive at the post at the specified time after being notified.

In December 2020, the company's organizational structure was adjusted, and the exhibition management center was abolished and transferred to the marketing management center. Yang Yuexin's job position was adjusted from the senior planning manager of the exhibition management center to the planning manager of the marketing management center, and the two positions correspond to the highest level of the company's internal ranks. Yang Yuexin disagreed.

On January 20, 2021, the company issued the Notice of Termination of Labor Contract, which stated:

Notice of termination of labor contract.

Yang Yuexin: Due to the needs of the company's management, you will be transferred from the exhibition management center to the marketing management center, and the salary and benefits will remain unchanged. According to the "Group Rank System" for job matching, in view of your disobedience to the company's transfer arrangement, the company will terminate the labor contract with you in accordance with the law. After the company's research and decision, the labor contract will be terminated with you on January 21, 2021. On January 21, 2021, Yang Yuexin's company computer, OA system, and WeCom were revoked by the administrator.

On January 4, 2021, Yang Yuexin applied for labor arbitration, demanding that the company promise to correct the position as a senior manager and pay compensation for the illegal termination of the labor contract in accordance with the promise of the offer letter.

On March 1, 2021, the arbitration commission made an award: 1. The company shall pay compensation of RMB 53,479 for the illegal termination of the labor contract78 yuan;2. Yang Yuexin's other arbitration claims were rejected.

Dissatisfied, the company filed a lawsuit, asking the court to rule that it did not need to pay compensation of RMB 53,47978 yuan;

The first-instance judgment stated that the company's adjustment of Yang Yuexin's position was the company's exercise of the right to independent operation and management.

The court of first instance held that in order to adapt to the changes in the development of the market economy, an enterprise is an independent market operator that adjusts and arranges its specific business operations, management methods, organizational structure and position setting out of production and operation needs in order to adapt to the changes in the development of the market economy, which falls within the scope of the employer's autonomy in operation management and employment.

In this case, the company revoked Yang Yuexin's department due to business needs, and subsequently adjusted Yang Yuexin's position, which is the company's exercise of the right to independent operation and management.

Yang Yuexin's positions before and after the adjustment are the highest level of internal rank C, and the company has been paying wages in accordance with Yang Yuexin's monthly salary standard, and Yang Yuexin's salary and treatment remain unchanged before and after the transfer.

In summary, the company's transfer of Yang Yuexin is reasonable and necessary, and the arrangement does not violate the contract, nor violates the mandatory provisions of the law, nor does it have the nature of punishment or insult, and the employee has the obligation to obey. However, Yang Yuexin clearly stated that she did not agree to the job transfer, and did not provide evidence to prove that she had reasonable reasons for not being able to work after the job transfer, so Yang Yuexin's refusal to transfer was a serious violation of the company's rules and regulations, and the company terminated the labor contract with Yang Yuexin on this basis, which was in accordance with the law, and Yang Yuexin's litigation request for the company to pay compensation had no factual and legal basis, and this court did not support it.

The judgment of the first instance is as follows: the company is not required to pay Yang Yuexin RMB 53,479 in compensation for illegally terminating the labor contract78 yuan;

Yang Yue was not convinced and appealed.

The second-instance judgment: the company adjusted the organizational structure for the needs of production and operation, and after the adjustment of Yang Yuexin's position, the rank and salary were not reduced, nor was there any insult, and the transfer was legal.

The court of second instance held that the employment relationship between Yang Yuexin and the company was legal and valid. The focus of the dispute in this case was whether the company should pay Yang Yuexin compensation for illegally terminating the labor contract.

The court held that whether the company had illegally terminated the employment relationship with Yang Yuexin was mainly focused on whether the company's adjustment of Yang Yuexin's position was legal.

According to the provisions of the "Labor Contract", the company can adjust Yang Yuexin's position due to production and operation needs.

In this case, the company adjusted the organizational structure for production and operation needs, and after the adjustment of Yang Yuexin's position, the rank and salary were not reduced, nor was it insulting, and the transfer was not in line with the contract and did not violate the mandatory provisions of the law.

As an employee, Yang Yuexin should obey the company's reasonable job transfer arrangement, and her refusal to transfer violates the company's "Employee Handbook"22.7, the company terminated the labor relationship with Yang Yuexin accordingly, in accordance with the law.

The evidence submitted by Yang Yuexin in the second instance, which was accepted by this court, could not prove that the company reduced Yang Yuexin's rank or salary after adjusting her position, so Yang Yuexin's appeal for compensation for illegal termination of the labor contract has no factual and legal basis, and this court does not support it.

In summary, Yang Yuexin's appeal request is not sustained and is not supported by this court. The facts found by the original trial court were clear and the law was correctly applied, and this court upheld it. In accordance with the provisions of Article 170, Paragraph 1 (1) of the Civil Procedure Law of the People's Republic of China, the judgment is as follows:

The appeal was dismissed and the original judgment was affirmed.

Case No.: (2021) Yue 03 Min Zhong No. 27021 (the party is a pseudonym).

Practical reference: Regarding the issue of job transfer, Case 14 of the Notice on the First Batch of Typical Cases of Labor and Personnel Disputes jointly issued by the Ministry of Human Resources and Social Security and the Supreme Court holds that Article 8 of the Employment Promotion Law of the People's Republic of China stipulates that "employers enjoy the right to employ employees independently in accordance with the law. "As a market entity, an employer should make appropriate adjustments to the position and place of work of its employees according to its own production and operation needs, which is an important part of exercising the autonomy of employment and is indispensable for its normal production and operation. However, at the same time, the exercise of the employer's employment autonomy must also meet certain conditions and scope within the framework of relevant laws and policies, such as the employer must make a reasonable explanation of the adjustment of the position or work location, so as to prevent the employer from retaliating against or indirectly forcing the employee to leave the job voluntarily, that is, to prevent the abuse of his rights.

In arbitration and judicial practice, the following factors are generally considered in the reasonableness of the adjustment of the post or work location:

1.Whether it is based on the production and operation needs of the employer;

2.Whether it is a major change to the employment contract;

3.Whether it is discriminatory or insulting to workers;

4.whether it has a significant impact on labor remuneration and other working conditions;

5.Whether the worker is qualified for the position to be adjusted;

6.Whether the employer provides necessary assistance or compensation measures after the inconvenience adjustment of the workplace.

The Interpretation of the Supreme People's Court on Issues Concerning the Application of Law in the Trial of Labor Dispute Cases (II) (Draft for Comments) also makes similar provisions:

Article 20 [Review Standards for Unilateral Adjustment of Job Position and Workplace by Employers] In the case of labor disputes arising from the unilateral adjustment of the position or place of work by the employer, the employer shall bear the burden of proof to prove the legality of the adjustment of the position or workplace.

In any of the following circumstances, the people's court shall make a determination if a worker claims that the adjustment of the position or place of work is unlawful:

1. It does not conform to the provisions of the labor contract or the rules and regulations of the employer;

2) It is not for the objective needs of the employer's production and operation;

3) There are adverse changes in the wages and other working conditions of the workers and the necessary assistance or compensation measures are not provided;

4) The worker is objectively incompetent for the adjusted position;

5) There are discriminatory or insulting circumstances;

6) Violating laws, administrative regulations, and other such provisions.

Where an employer illegally adjusts a job position or work location, and the worker requests to terminate the labor contract and pay economic compensation on the grounds that the employer does not provide working conditions, the people's court shall support it.

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