Nowadays, the recycling of bottles is not rare. It is rare that bottles are recycled only for destruction. What is even more rare is that the marketing manager in charge of recycling bottles uses the convenience of his office to send the high price of the business to the company established by his wife and mother-in-law. The result was dismissed by the company. Is it legally faulty for company managers to hand over their business to their own family? Can a recycling bottle of empty wine be used as a basis for a company’s claims to executives? Please look at the labor contract dispute case handed down by the Xuhui District Court recently.
Recycling bottles is a good deal
Jinsheng Wine Trade Co., Ltd. is an international trade and trading agency mainly engaged in alcohol trade. It specializes in the wholesale, import and export of alcoholic beverages. Since the second half of 2006, due to business needs, the company is looking for merchants that provide bottle recycling services to recycle designated brands of empty bottles. The selection and confirmation of service providers will be handled by Mr. Luo, the company’s newly appointed marketing manager. Mr. Luo came to Shanghai from Taiwan and was employed by Haosheng Company as the marketing director of the channel (the place where the wine was sold). The salary was 10,000 yuan per month. The labor contract stipulates: “If any of the parties terminates their employment, they must notify the other party one month in advance, except within seven working days in advance of the trial period. The company reserves the right not to notify the employee in advance if there is any dishonest or major mistake. Termination of employment rights."
In October 2006, under Luo’s “meticulous†planning, Haosheng Company and Changbao Labor Service Co., Ltd. signed an empty bottle recycling agreement. The main content was: Changbao Company reclaimed its designated city in the People’s Republic of China for Haosheng Company. The brand's empty bottle of wine, Chang Bao company under the supervision of the staff of the Sheng Sheng company to take pictures of empty bottles taken and crushed and destroyed, the cost is 5 yuan an empty bottle. In the following year and a half, Chang Bao Company recovered a total of more than 900,000 bottles of foreign wine, and Shengsheng Company paid more than 4 million yuan to Changbao Company.
Hidden and disgusted executives are fired
In May 2008, the foreign manager of the channel marketing of Weisheng Company was in a chat with other foreign wine traders, and it was learned by chance that Changbao's wine bottle return charge was much higher than that of similar market conditions. In order to solve this mystery, the foreign manager of the marketing channel asked Shengsheng to re-determine the service provider through bidding. The companies participating in the bidding included a total of 3 companies including Changbao Company, and the final service price of the successful bidder was 2.95 yuan for each wine bottle, which was a difference of 2.05 yuan from Changbao Company's recycling price.
The strange thing is that even though there is a lower quotation, Luo's supervisor still strongly urges Chang Bao as its business partner. In view of the high price quoted by Changbao Co., Ltd. and Luo Jun’s executives, Hao Sheng Company decided to conduct a background check on Chang Bao Company.
The investigation found that when the empty bottle recycling agreement was signed, Chang Bao Company had not yet been formally established; even more surprising was that the original legal representative of Chang Bao was the wife of Luo's supervisor, and the current legal representative was the mother-in-law of the mother-in-law. . In view of this, it is not surprising that Luo Guan is particularly proud of Chang Bao Company and that he collects expensive bottles at a high price.
On June 10, 2008, Haosheng Company issued a notice to Mr. Luo on the grounds of serious violations of labor discipline and company rules and regulations, and lifted the employment relationship between the two parties. In August of the same year, Haosheng Company applied for arbitration from the Shanghai Municipal Labor Dispute Arbitration Committee and requested Mr. Luo to compensate the company for the economic loss of 1.94 million yuan incurred during his employment. Mr. Luo filed a counter-claim and demanded that Shengsheng Company pay a total of more than RMB 32 million, including three-month notice of salary, illegal termination of labor contract compensation, and annual bonus. After the arbitration commission made a ruling, Haosheng Company refused to accept the lawsuit and filed a lawsuit with the court.
Defendants should be compensated as they see fit
During the trial, Weisheng Company claimed that during the period of serving as the company’s marketing director, the defendant took advantage of his powers and convenience, and did not make wine bottle recycling rates. He designated Chang Bao Company as a recycling service provider, and signed a contract with Chang Bao Company under deliberate arrangements. Bottle recycling service agreement. Changbao Company was actually operated and controlled by the defendant. The defendant traded with the extraordinary service price, and obtained huge profits from it. It caused major economic losses to Haosheng Company. Therefore, the defendant claimed compensation of 1.94 million yuan.
The defendant, Mr. Luo, argued that it was not the company’s own decision but the company’s decision that the company should become a service provider of Haosheng. The establishment and selection of Chang Bao Company was only a coincidence. The reason why the wife and the mother-in-law was not informed of the shareholder of Changbao Company was timely made to Yu Sheng Company, mainly to avoid suspicion. It is illegal for Shengsheng Company to unilaterally terminate labor relations. The difference in bottle recycling costs as a claim for economic losses is even more unlawful.
During the hearing, Haosheng Company submitted an application and commissioned the relevant organization to evaluate the value of empty wine bottle recycling, transportation and destruction services. After adopting the market comparison method, the evaluation of the service value concluded for 3.15 yuan per empty bottle.
The court held that from the analysis of the facts identified, the defendant, as the director of marketing, was responsible for the recovery of empty bottles of wine. The defendant handed over the business of recovering the empty bottle from Shengsheng Company to the company that his wife had not yet opened. This would be sufficient for the plaintiff to justify the defendant's false publicity and damage the interests of the company. The defendant’s actions are faulty and should bear corresponding responsibilities. As for the specific amount of compensation, since the business of recycling empty bottles is rather special, there is no universally agreed or established price in the market. Therefore, it is not reasonable to simply use the low price of the assessment company as a standard compensation, and the amount of compensation should be determined as appropriate. . Finally, the court sentenced the defendant to compensate the plaintiff, Yongsheng Wine Trading Co., for 150,000 yuan; the plaintiff, Yongsheng Wine Trading Co., paid 40,10 yuan of wages owed by the defendant.
In recent years, disputes involving the company’s senior executives infringing on the interests of the company have frequently appeared in courts. Analyzed from the legal level, the laborers, especially the senior management personnel of the company, have diligent and honest obligations to the company based on the labor relations with the employer. Specifically, it includes the obligation to act in good faith, not to undermine the interests of employers, not to compete in the industry, and not to disclose the employer’s business secrets or important information in other ways to others or to use for their own interests. Article 39 of the "Labor Law" in China stipulates: "If a worker seriously neglects his duty or engages in malpractice for personal gain, causing serious damage to the employer, the employer may terminate the labor contract." Article 55 of the "Shanghai Labor Contract Regulations" also stipulates: "Labor If the contracting party violates the labor contract, it shall bear corresponding responsibilities.†The defendant in the above case violated the honesty obligation to the company. His behavior was faulty and he should bear corresponding responsibilities.
Many companies lamented afterwards that senior management personnel used their positions to facilitate family-owned and family-friendly business operations to participate in inter-company transactions; using the technology and information held in their positions to harm the interests of the company was really hard to prevent. Nine shortages. Legal professionals believe that in terms of individuals, senior managers violate the prohibition on business competition and make use of their positions to facilitate the participation of family and family members. This reflects the lack of professional ethics and integrity; This reflects the lack of supervision institutions or the weakening of the supervisory functions. It needs to strengthen management and prevent them from taking the lead. The judge suggested that the company improve the relevant rules and regulations, establish supervision institutions, strengthen supervision functions, guide from the corporate culture level, and strengthen the sense of belonging and loyalty of senior managers.
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