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Staffing & Labor

Labor Arbitration Enterprise Response Strategy and Evidence Preparation Guide

2026-07-10 CccSun Editorial

Labor arbitration is the statutoryprerequisite procedure for resolving labor disputes. Upon receiving an arbitration application, enterprises should respond actively, prepare evidence thoroughly, and protect their lawful rights and interests.

1. Arbitration Process

The statute of limitations for labor dispute arbitration is 1 year (from the date the party knew or should have known of rights infringement). Process: applicant submits arbitration application β†’ arbitration committee decides acceptance within 5 days β†’ serves application copy to respondent within 5 days after acceptance β†’ respondent submits defense within 10 days β†’ hearing (mediation β†’ award) β†’ tribunal concludes within 45 days from acceptance (may extend 15 days for complex cases). Those disagreeing with the award may sue in court within 15 days (except final awards).

2. Enterprise Response Essentials

Upon receiving arbitration notice: β‘  carefully review arbitration claims and facts/reasons, assess risk; β‘‘ submit defense within the defense period (failure to submit does not affect proceedings, but submission is recommended); β‘’ collect and organize evidence (labor contracts, wage records, attendance records, rules and regulations, termination notices, etc.); β‘£ prepare hearing attendees (HR head or legal, lawyer recommended); β‘€ consider mediation possibility. The employer bears the burden of proof for certain matters (e.g., dismissal, wage reduction, calculation of service years).

3. Evidence Collection Rules

In labor disputes, evidence employers must retain: labor contracts and attachments, employee handbook and sign-off records, wage payment records (at least 2 years), attendance records (at least 2 years), social security payment records, performance assessment records, reward/discipline decisions and delivery records, termination/ending notices and delivery evidence, training records, confidentiality and non-compete agreements. Electronic evidence requires original media retention; WeChat/email records require notarization or in-court demonstration.

4. Mediation and Enforcement

The arbitration tribunal must conduct mediation before issuing an award. If mediation reaches agreement, the tribunal issues a mediation document, which becomes legally effective upon signature by both parties (enforceable by compulsory execution). If mediation fails, an award is issued. Enterprises disagreeing with non-final awards may sue; for final awards (disputes over labor remuneration, work injury medical expenses, etc., not exceeding 12 months of local minimum monthly wage), may only apply for revocation to the intermediate court. Establishing a labor dispute early-warning mechanism and resolving through negotiation before arbitration is recommended.

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