2025 Labor Law Lawyer Ranking Released: Corporate Employment Compliance and Layoff Risk Prevention Take Center Stage

Recently, Lvxin News released the "Guide to Premium Labor Legal Services Brands (2023)" at the first Labor Legal Services Brand Festival, and launched the "Brand Star Top 30" honorary lawyers in the labor

Economic layoffs: Procedural legality is the bottom line; improper operation constitutes illegality.

The reasons for multiple seasoned lawyers on the list all mention experience handling "mass layoff" cases. This is no coincidence. In recent years, affected by the economic environment, it has become common for enterprises to conduct layoffs due to operational difficulties. However, many companies mistakenly believe that "as long as they pay compensation, they can lay off employees," ignoring statutory procedures. Article 41 of the Labor Contract Law clearly stipulates that if an employer needs to reduce personnel by 20 or more, or by fewer than 20 but accounting for more than 10 percent of the total number of employees, the employer must explain the situation to the trade union or all employees 30 days in advance, listen to the opinions of the trade union or the employees, and report the layoff plan to the labor administrative department before it may proceed with the reduction.

In practice, we often encounter situations where enterprises fail to fulfill the two key steps of "providing a thirty-day advance notice" and "reporting to the labor administrative department," resulting in layoffs being deemed illegal termination. Once deemed illegal, according to Article 87 of the Labor Contract Law, enterprises are required to pay compensation at twice the economic compensation standard. In addition, during layoffs, attention must also be paid to the scope of priority retention, including employees with open-ended labor contracts, employees whose families have no other employed persons, etc.; otherwise, they will also face legal risks.

For workers, if they encounter “disguised layoffs” by companies—such as job transfers with pay cuts or marginalization through cold treatment—they should preserve evidence such as pay slips, attendance records, and work communication records. Lawyers suggest that workers, under the guidance of a lawyer, may terminate the contract and claim economic compensation based on Article 38 of the Labor Contract Law, citing “failure to pay labor remuneration in full and on time” or “failure to provide labor conditions as agreed in the labor contract,” rather than passively accepting the company's arrangements.

Overtime Pay Disputes: Allocation of Burden of Proof Is the Key to Winning or Losing

Another frequent dispute in the labor law field is overtime pay. Multiple lawyers featured in the Lvxin Society rankings have published professional articles and handled cases involving overtime calculation and burden of proof issues. Many workers assume that as long as they work overtime, they are entitled to overtime pay, but the law has special arrangements regarding the burden of proof for overtime facts. According to Article 42 of the Interpretation (I) of the Supreme People's Court on the Application of Laws in the Trial of Labor Dispute Cases, workers claiming overtime pay shall bear the burden of proof for the existence of overtime facts; however, if the worker has evidence proving that the employer possesses evidence of the overtime facts and the employer fails to provide it, the employer shall bear the adverse consequences.

This means that workers cannot rely solely on verbal claims but must provide preliminary evidence such as overtime approval forms, email correspondence during overtime periods, and WeChat work group records. On the other hand, if an enterprise implements a standard working hours system but fails to establish an overtime approval system, or if its attendance records are incomplete, it is likely to be put at a disadvantage in arbitration.

From a compliance perspective, lawyers advise companies to establish a clear overtime approval process and to stipulate the overtime calculation base in labor contracts or internal rules and regulations. For positions that adopt a comprehensive working hours system or a flexible working hours system, companies must apply to the labor administrative department for approval; otherwise, the arrangement may be deemed invalid. If workers find that the company has long-term forced overtime without paying overtime pay, they may apply for labor arbitration within one year after leaving the company and must not exceed the statute of limitations.

Equity Incentives and Labor Relations: Incentives and Risks Coexist

Several lawyers on the list specialize in "equity incentives," which is also a hot topic in the intersection of labor law in recent years. When implementing equity incentives, companies often tie the incentives to the labor relationship, such as stipulating that "unexercised options are forfeited upon departure." However, judicial practice holds different views on this. According to the Company Law and relevant judicial interpretations, equity incentive agreements are civil contracts, while labor relations are governed by the Labor Contract Law. If the incentive agreement does not clearly stipulate how to handle the matter upon departure, the court may refer to the principle of fairness in making a judgment.

For example, after an employee of an internet company left, the company refused to cash out matured options on the grounds that the employee had "violated non-compete obligations." After arbitration and litigation, the court held that non-compete economic compensation and equity incentives belong to different legal relationships, and the company could not directly deprive the employee of vested property rights on the grounds that the employee had not fulfilled non-compete obligations. Lawyers remind that when designing equity incentive plans, enterprises should clearly stipulate exercise conditions, departure handling, and non-compete linkage mechanisms to avoid disputes caused by vague clauses.

For employees, before signing an equity incentive agreement, it is essential to carefully review core terms such as the "service period," "exercise window period," and "repurchase clause." If the company refuses to honor the agreement on the grounds of being "unlisted," employees may claim breach of contract based on the agreement, and if necessary, protect their rights through litigation.

Labor Employment Compliance: Full-Process Management from Recruitment to Departure

The LvXinShe rankings highlight lawyers' expertise in the field of "labor and employment compliance." Employment compliance is not just about responding to arbitration; it is also key to reducing operational risks. From discriminatory clauses in job postings, to the legality of terminations during probation, to the handling of exit procedures, every step has the potential to trigger legal disputes.

For example, if a company sets "males only" or "rejects carriers of hepatitis B" during recruitment, it may be suspected of violating the equal employment rights stipulated in Article 3 of the Employment Promotion Law. If an employment contract is terminated during the probation period, according to Article 39 of the Labor Contract Law, the employer must prove that the employee "does not meet the hiring conditions," and this must be raised within the probation period; otherwise, the termination constitutes an illegal termination. When an employee leaves, if the employer fails to issue a certificate of termination as required by law or fails to settle the wages in full, the worker may file a complaint with the labor inspection department.

Lawyers advise enterprises to establish a labor employment compliance system, including regularly reviewing rules and regulations, standardizing labor contract signing, improving attendance and overtime management, and establishing exit interview mechanisms. For small and medium-sized enterprises, they may hire legal counsel to conduct an annual employment compliance review to identify and rectify risk points in a timely manner. When workers encounter unfair treatment, they should preserve evidence and promptly consult professional lawyers, avoiding giving up on defending their rights due to a "fear of trouble."

Professional services in the field of labor law are not merely about handling individual cases, but also about promoting corporate management and social harmony. Guangdong Zhiming Law Firm has been deeply engaged in labor law matters for many years, accumulating extensive experience in labor dispute arbitration, litigation, corporate employment compliance, and the design of layoff and resettlement plans. If you are facing a labor dispute or need an employment compliance review, please feel free to contact us. We will provide you with practical and feasible solutions from a professional perspective.