Understand Individual Labor Disputes to Protect Your Rights

Individual labor disputes are among the most common legal issues that arise during the employment relationship between employees and employers. Properly identifying the type of dispute and understanding the resolution process allows employees to proactively protect their legal rights while helping businesses minimize legal risks.

What is an Individual Labor Dispute?

An individual labor dispute is a conflict between an employee and an employer related to rights and obligations during employment. According to Article 179 of the 2019 Labor Code, individual labor disputes include:

• Disputes over dismissal or unilateral termination of labor contracts;

• Disputes over wages, bonuses, working hours, rest periods, and termination benefits;

• Disputes involving compensation for damages or disciplinary actions;

• Disputes when employers fail to fulfill contractual obligations;

• Disputes arising from collective bargaining agreements or internal labor regulations.

The term “individual labor dispute” often appears in cases where employees are unlawfully dismissed or leave a job without receiving adequate benefits.

Common Causes of Individual Labor Disputes

1. Unclear labor contracts
   Disputes frequently occur due to vague contract terms that do not clearly define job duties, salary, working hours, or termination policies.

2. Illegal unilateral termination
   Employers terminate contracts without legitimate reasons or fail to give proper notice. Conversely, employees who quit without notice may also face penalties.

3. Late wage or insurance payments
   Some businesses delay salary payments or fail to pay social insurance on time, leading to employee claims.

4. Improper disciplinary procedures
   Employers apply disciplinary measures without following proper legal procedures, causing disputes and even counterclaims.

Dispute Resolution Process

1. Direct negotiation
   The first step is to encourage direct negotiation between the employee and employer. If both parties reach an agreement, the dispute is resolved without involving authorities.

2. Mediation at the grassroots level
   If negotiation fails, either party may request mediation by a district-level labor mediator. However, in some cases (e.g. dismissal), employees may skip mediation and file directly with the court.

3. Filing a lawsuit
   If mediation fails or is not required, the employee can file a lawsuit at the competent People’s Court. The statute of limitations is:

• 1 year for labor contract disputes;

• 6 months for disciplinary or damage compensation disputes.

Important Notes

1. Collect evidence
   Employees should keep contracts, termination decisions, payslips, emails, and messages as proof. Lack of evidence is a common reason for losing cases.

2. Mind the statute of limitations
   Failure to act within the time limit can result in losing the right to sue. Timely action is critical.

3. Legal representation
   Parties may authorize a lawyer to represent them in court to ensure effective legal strategy and procedural compliance.

DEDICA’s Legal Support for Labor Disputes

DEDICA provides legal solutions for both employees and employers in individual labor dispute cases:

• Review case files and assess litigation feasibility;

• Draft lawsuits, negotiation minutes, and mediation records;

• Represent clients before authorities and courts;

• Advise on appropriate legal strategies.

Labor disputes are sensitive legal matters that directly affect employee rights and business reputations. Understanding the nature of the dispute and the resolution process helps both sides protect their legal interests. For support, contact DEDICA – our legal team is ready to assist you.

Contact DEDICA Law Firm for expert legal advice!
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