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Unit defaults on wages, can workers detain property?

Update time:2021/5/12 15:31:22 Browse times:638

Article Introduction

Lien is a common right of the parties to the contract under the contract relations such as transportation and entrusted processing. Can workers take possession of the employer's property in the labor relations? In this case, the courts of first instance and second instance have completely opposite opinions on the same legal relationship, which is the basic condition for the exercise of the lien, and come to the opposite conclusion. Unfortunately, both the first instance and second instance, are simply affirmed or denied, and do not explain the reason thoroughly. As a review article, this article does not fundamentally solve this legal problem, but from the general civil law rules in the field of labor relations to carry out a superficial introduction.

Introduction: Units do not pay the full amount of labor remuneration, economic compensation, workers detain their custody, possession of the unit's property, can it? Or, do workers have a lien on the unit's property?

Case: Units defaults on wages, workers detain cars

Lu Haiyun was formerly the deputy general manager of the Yangtze River Delta Commodity Exchange Ltd.. (the "Yangtze River Delta Company"), and the Yangtze River Delta Company purchased a car and delivered the car to Lu Haiyun for his work. In February 2014, the company terminated the employment relationship with Lu Haiyun due to a serious violation of company rules. Lu Haiyun agreed to terminate the employment relationship with the company but did not agree to the return of the car because the company owed wages, social insurance premiums and economic compensation so he had creditor's rights with the company. He claimed that he had lawful possession of the car on the basis of employment and may exercise the lien on the car until the company paid off the expenses.

Court: support of the first instance and correction of the second instance

The company filed a lawsuit to the court to request Lu Haiyun to return the car.

The People's Court of Chongan District in the first instance held that Lu Haiyun lawfully possessed the car on the basis of employment relationship, and the company owed him wages and economic compensation, so Lu Haiyun had the right to exercise the lien on the car, and did not uphold the company's request for Lu Haiyun's return of the car.

Wuxi Intermediate Court held after trial that the lien could not be exercised on the claim arising from the employment relationship, and the car was not the subject matter of the employment relationship between the parties and did not meet the constitutive requirements of the "same legal relationship". The employment relationship between the parties had been terminated and Lu Haiyun had lost the basis to lawfully possess the car. The second instance held that the application of law by the court of first instance was wrong, which should be corrected, and ordered Lu Haiyun to return the car to the Yangtze River Delta Company.

Lawyer's Comment: Civil rules cannot necessarily be applied to employment relationship

Lien, a civil right, is common in contract disputes such as contracts of carriage and contract of entrusted processing, and cannot be extended to different legal relationships unless the law expressly provides. This case is a labor contract dispute, and the labor law does not authorize the right of lien on the property of the employer. Whether a lien can be applied to employment disputes needs to be considered in the following aspects:

First, adjust the difference of subjects. Civil law rules adjust the personal and property relations of equal subjects, but labor relations are based on the subordinate attributes of personality and economy. The equality of employers and workers in the legal status cannot eliminate the inequality of their substantive status.

Second, the principle of protection is inconsistent. In employment relationship, whether in legislation, law enforcement or judicial activities, all embody the principle of protecting laborers in favor of equal protection as the most basic principle in civil activities.

Third, the application of civil rules in employment relationship needs to be restricted. Many basic legal principles or systems in civil law, such as autonomy of will and equal compensation, are greatly restricted in employment relationship. Many norms in employment law have established the system and channel of protection for labor claims. As for the preservation of debts, such as subrogation, cancellation, and lien in the performance of contracts, the private relief of laborers will lead to the unfair of civil claims and debts, and damage the basic legal system of property rights and claims in civil legal relations, so it cannot be applied to employment claims.