A labor arbitration notice: the employer’s first steps

Record service and procedural deadlines

Check the named respondent, arbitration commission, claims and attachments. Article 30 of the Labor Dispute Mediation and Arbitration Law requires the respondent to submit a defense within ten days of receiving the copy of the arbitration application. Failure to submit a defense does not stop the arbitration.

Record the defense, evidence and hearing dates separately. Check the actual documents and applicable rules; do not assume that one deadline covers every procedural task.

Build a record for each claim

Separate claims for wages, overtime, compensation or other relief. For each, record the employee’s basis, the company’s position, supporting documents and evidence gaps. Preserve the source, date and version of each record.

Article 6 addresses evidence held and managed by the employer and the adverse consequences of not providing it. Article 44 of SPC Interpretation (I) on Labor Disputes also allocates the burden of proof for disputes arising from employer decisions such as dismissal or pay reduction.

Review procedural objections during arbitration

The general arbitration limitation period is one year under Article 27, but the same provision includes interruption, suspension and special rules for unpaid wages during an ongoing employment relationship. The termination date alone is not enough to assess every claim.

Article 20 of SPC Interpretation (II) restricts a party from first raising a limitation defense in subsequent litigation where its own failure caused it not to raise that defense during arbitration. The provision includes a new-evidence exception. Assess limitation and jurisdiction issues at the arbitration stage.

Assess settlement against the evidence

Compare the available evidence, procedural position and business objectives. If settlement is pursued, define the scope, payment conditions, timing and steps to conclude the pending procedure.