Employees’ Obligation of Truthful Disclosure when Concluding Labor Contracts

 

 

Gu was the candidate interviewed for a position in an electronic company on 29 May 2014. He filled out the application form and stated that he graduated from Fuyang Science and Technology College and achieved the degree of Junior College. On the bottom of the application form, Gu signed a statement that all the information he filled out was true and correct, and if any concealment or false information is found, the company is entitled to terminate the labor relationship without any compensation. On 4 June 2014, Gu was hired and entered into a three-year term labor contract with the company. The Employee Handbook of the company specifically stipulated that "employees who lie on their resumes about false personal information shall be dismissed". In 2018, the company reviewed on the application forms of all employees and found that Gu’s academic information could not be verified on the national educational website. The so-called Fuyang Science and Technology College was not a qualified college recognized by the Ministry of Education. Therefore, the company decided to terminate the labor relationship with Gu according to Labor Contract Law and rules of its Employee Handbook. However, Gu claimed against the Company for the compensation on the ground of wrongful termination. This case was submitted to the labor bureau and later went on trial in the court.

 

The court held that Gu cheated the company about his academic degree to obtain the position, which shows lack of integrity and breach of the principle of good faith. Since the company has notified the trade union, it is entitled to terminate the labor relationship without any compensation to Gu. The court decided in favor of the company.

 

The principle of good faith has been used in many areas of law and also has great significance in Labor Law. According to Article 8 of Chinese Labor Contract Law, the employer has the right to acquire the basic information of employees which is directly related to the labor contract, (example.g., the employees’ age, education background, technical abilities) which shall be provided by the employee truthfully. In fact, candidates may lie on resumes about credentials or past experience to draw recruiter’s attention or simply make their resumes look good. However, if the employer makes clear job requirements for academic degree or qualification certificate when recruiting, which are directly related to the specific job and labor contract, false statement may get the employee be involved in fraudulent allegations. Under the above circumstance, the employer is entitled to terminate the labor relationship with the employee, even though the employee is proved to be qualified for the current position. 

 

As for the employer, it should strictly review the personal information provided by candidates. If the job has special requirements for academic qualifications, it shall be specified in detail in the job description. Meanwhile, it shall be emphasized in the labor contract and Employee Handbook that dishonesty will never be tolerated but leads to the unemployment line.