Author: Lawyer Liu Zhengao
Original Title: Can Chinese Law Intervene When Crypto Exchange Employees Are Fired?
Introduction
Recently in the crypto circle, a small incident occurred where an employee of a virtual currency exchange was fired and claimed on social media that they were dismissed without reason to avoid legal compensation.
The exchange also responded on its official social media account, not only rejecting the former employee's statement but also asserting that the company legally terminated the labor contract and immediately provided an N+1 compensation plan during the employee's departure, which was not accepted.
This "departure controversy" has caused some public opinion on social media, especially on overseas platforms where crypto friends gather.
As a web3 lawyer, Lawyer Liu will not discuss the emotional rights and wrongs of this incident. Instead, we will analyze the legal issues, especially labor employment issues in the crypto circle.
[The rest of the translation continues in the same manner, maintaining the original structure and translating all text while preserving the <> tags and their contents.](II) Be Wary of Disguised Dismissal Based on "Performance"
Some crypto workers have reported that before leaving, companies suddenly lower their position or salary on the grounds of "performance not meeting standards" or force automatic resignation through "position adjustments".
Lawyer Liu suggests: Employees have the right to request the company to disclose performance assessment standards and data. If the company has malicious dismissal, they can claim compensation for illegal termination (Articles 48 and 87 of the Labor Contract Law).
(III) Apply for Arbitration Promptly after Resignation to Prevent Exceeding the Statute of Limitations
According to Article 27 of the Labor Dispute Mediation and Arbitration Law, the labor arbitration statute of limitations is 1 year, calculated from the date of knowing or should have known about the rights infringement.
Lawyer Liu suggests: After being dismissed or discovering the company's illegal actions, one should quickly defend rights in writing and submit a labor arbitration application to avoid missing the statute of limitations.
IV. Conclusion
From a legal perspective, virtual currency exchanges are indeed a very novel industry. Especially under the premise that mainland China defines virtual currency business activities as "illegal financial activities", domestic crypto workers are definitely in an absolutely disadvantaged position. Web3 practitioners working directly for exchanges have even less legal recourse in mainland China, which requires familiarity with legal provisions of the exchange's registration location, actual operating location, and place of employment, especially labor law regulations.
Singapore recently imposed stricter regulations on web3 practitioners, requiring them not only to be familiar with industry knowledge but also to understand some legal knowledge. Or to seek legal advice from professional web3 lawyers.
In the future, the virtual currency industry will face increasingly strict global regulation and business contraction pressures, making labor disputes more frequent. Exchanges should comply with employment practices, and employees need to enhance their rights protection awareness. More "cross-border labor relationship" judicial disputes may emerge, and it is recommended that employers and laborers clearly specify legal application and dispute resolution methods when signing contracts. Strive to resolve conflicts at the initial stage.
