Evidentiary Standards for Trade Secret Misappropriation in Labor Arbitration
PRC labor arbitration requires employers to prove contractual breach, asset confidentiality, and exact damages without statutory burden shifting.
Labor Arbitration Committee
Meaning
A specialized administrative tribunal handles disputes between employers and employees before they can be escalated to the civil court system. In Chinese employment law, the labor arbitration committee operates as a mandatory first step for resolving conflicts over wages, severance pay, non-compete clauses, and wrongful terminations. This administrative body ensures that employment disputes are processed rapidly and outside the standard judicial courts.
Statutory Jurisdiction
A strict rule mandates that all employment disputes must go through this administrative channel before a lawsuit can be filed. Under the labor arbitration committee rules, the tribunal holds exclusive jurisdiction over labor disputes arising within its geographical district. This includes cases involving foreign-invested enterprises, where local rules and provincial labor standards apply directly.
The decision issued by the tribunal is binding unless one of the parties appeals to a people’s court within fifteen days of receiving the ruling.
Arbitration Procedure
A formal complaint filed by an employee or employer initiates the dispute resolution process. This labor arbitration committee procedure involves a mandatory mediation phase where the arbitrator attempts to guide both parties toward a mutually acceptable settlement. If mediation fails, a formal hearing is scheduled, and the arbitrator reviews evidence, hears testimonies, and issues a written arbitral award.
Execution Remonstrance
A challenge arises when a party refuses to comply with a final arbitral award that has not been appealed. Under the labor arbitration committee framework, the winning party cannot execute the award directly but must petition the people’s court for enforcement. This step converts the administrative decision into an enforceable judicial order.