Recently, a Shanghai court issued a first-instance decision in a case of dismissal from a company due to an employee's refusal to transfer. In 2020, Ms. Li reportedly received a transfer notice from the company - from a managerial position, she was transferred to a service position.
But Ms. Li refused to accept the transfer to another job. The parties failed to agree, and the company terminated the employment contract with her. Ms. Li initiated labor arbitration, but it was not supported. Ms. Li refused to accept the arbitration award and sued, demanding that the company pay 600,000 yuan in compensation and 230,000 yuan in overtime pay.
Ms. Li said that the transfer and dismissal of the company was a sham, and the point was to force employees to leave, so she did not agree to the transfer. However, the company said that due to the adjustment of the organizational structure, the parties failed to agree, which is the legal termination of the employment contract.
The court found that Ms. Li's department continued to operate and the company's termination of the employment contract was unreasonable, in the first instance, the court ruled that the company should pay more than 560,000 yuan in compensation and pay more than 30,000 yuan of wages recalculated for unused annual leave.