Could Jurisdiction Be Restricted at Where Employer Locates?

  • 29 Aug 2019 5:08 PM
    Message # 7854725

    In practice, in consideration of favorable interest of lawsuit, many employers will stipulate in labor contracts, agreements of dismissal and competition restraint agreements that only the court at the place of residence of the employer have the jurisdiction, which intends to exclude the jurisdiction at the place of the performance of the labor contract in accordance with the Claus 34 of the Civil Procedure Law. Now the question is:is it effective of such agreement of the jurisdiction domination in labor contract?

    [Case Senatio]

    Li was employed since 1st of August, 2015 as sales. The registration place of the employer was in Hong Shan District of Wu Han city, while the performance place of the labor contract was in Chao Yang District of Beijing. The agreed period of the employment was from 1st August, 2015 to 30th July, 2018. The clause 12 of the labor contract stipulated: "The procedure to solve labor dispute is … The party who does not accept the arbitration result may file a lawsuit at the people's court of the registration place of the employer within 15 days upon the date of receiving the arbitral award." This clause 12 is one of the format terms of the labor contract.


    When there was a labor dispute between Li and the employer occurred, Li applied arbitration to the Labor Arbitration Committee of ChaoYang District in Beijing, which was rejected. Li then filed a law suit at the people's court of ChaoYang Districtin Beijing. During the replying time, the employer filed the objection to the jurisdiction and requested to transfer case to the people's court of Hong Shan District in Wu Han city. 

    [View of Court]

    The performance place of this labor contract is in ChaoYang District in Beijing. And the jurisdiction of labor disputes shall belong to the basic people's court where the employer is registered or the labor contract is performed. The format term regarding the jurisdiction domination deprives the litigation right of employee and causes inconvenience of employee. Such term therefore shall be ineffective. And the court of ChaoYang District of Beijing has the legal jurisdiction of this case. 

    [View of PW & Partner]

    PW & Partners deem that labor contract is kind of special from common civil & commercial contracts. The parties of a labor contract are of unequal relationship. Namely, employee is normally at weaker position of the contract. If it is allowed that employer stipulates specific jurisdiction in labor contract, it would deprive the right of employee to choose jurisdiction domination and cause remarkable unfavorable situation when employees try to fend for themselves.     


    Secondly, regarding the jurisdiction of labor disputes, the clause 8 of Interpretation of the Supreme People's Court on Several Questions Concerning the Application of Law in the Trial of Labor Dispute Cases (hereinafter referred as "Juridical Interpretation of Labor Disputes") stipulates clearly that basic people's court where employer is registered or labor contract is performed has the jurisdiction of labor dispute cases. Moreover, neither Labor Dispute Mediation and Arbitration Law nor "Juridical Interpretation of Labor Disputes" empowers employer and employee have the right to specify the jurisdiction in an agreement.


    In another word, for the jurisdiction of labor dispute cases, it shall be subject to the provisions of the law and the juridical interpretation.


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