Appeal Court Affirms the Decision: Cost of Layoff without cause: Severe Statutory Punitive Damages

Late of year 2006, O. John started his service as president for a European held company in Xiamen, Fujian, China. On December 10, 2008, while he was waiting for company’s car to pick him up as back from home trip for his father funeral, he was told that no need to come back to office. Consultation and negotiation did not help to work out an amicable settlement. O. John had to file litigation in the district local court, claiming overdue salaries and part of the statutory punitive damages.

Simon Lee Esq. and Linda. D. May represented O. John on the proceeding. Friday April 24, 2008, the judge found that there is a bona fide employment relationship between the company and O. John. The company has no acceptable cause to lay off O. John, especially in such a sudden way without 30 days prior notice. The company shall pay statutory punitive damages, plus the overdue salaries.

The Company appealed the case, but the appeal court overturned its appeal and maintains that Cost of Layoff without cause: Severe Statutory Punitive Damages.

Supported by this appeal judgement,  O. John may file further litigation, claiming the double pay of the previous 11 month’s salaries as another statutory punitive damages and compensation.