When the company employs the general manager, the performance objectives are agreed in the labor contract. In order to ensure the achievement of the performance, the two parties also signed an agreement, in which the general manager pledged the house held by himself and promised to make up the company's interests with the realization value of the house property if the performance could not be completed as scheduled. Later, the company dismissed the general manager and filed a civil lawsuit, demanding him to bear the liability for breach of contract. Recently, the Intermediate People's Court of Suzhou City, Jiangsu Province, concluded the labor contract dispute case and dismissed the company's lawsuit according to the law. In January 2019, a company in Gansu signed an employment contract with the defendant Liu, who was appointed as the general manager of the company's East China Sales Office and agreed on performance goals. As the general manager, Liu is responsible for the company's product sales and business performance. In July of the same year, the company signed an agreement with Mr. Liu to agree on the overall revenue indicators of the first project of the East China Branch. In order to ensure the achievement of the goal, Mr. Liu mortgaged the house held by himself and promised to supplement the company's interests with the realization value of the house if the performance could not be completed as scheduled. Later, Liu signed the annual business performance responsibility letter issued by the company. On September 20 of the same year, the company terminated the labor relationship with Mr. Liu on the ground that he could not continue to be employed, and ordered him to leave the company. At the same time, the company asked Mr. Liu to sign an agreement on the ground that he would be held responsible for using the real estate if the goal was not completed, stipulating that Mr. Liu must complete the project payment collection before the beginning of 2020. If it could not be completed, the company would reserve the right to continue to collect debts from Mr. Liu and use the property transfer as compensation. The agreement also agreed that Liu would establish a sales team independently and operate independently. Later, the company sued to the court with the above agreement, asking Liu to bear the breach of contract losses and compensate with the house under his name. The Company believes that the labor relationship between the two parties was terminated on September 20, 2019, and the agreement signed on that day is a civil contract relationship. However, Liu believes that the above agreement is only an expectant agreement for the company's internal business objectives of hiring employees. After the court of first instance rejected the original petition according to the law, the company refused and filed an appeal. The second instance of Suzhou Intermediate People's Court held that the premise for judging whether Liu should pay compensation for breach of contract was to analyze the nature and effectiveness of the agreement, performance responsibility letter and employment contract signed by both parties. According to the law, the manager of a company shall sign a labor contract with the board of directors. In this case, the employment contract signed between the company and Liu has the necessary terms of the labor contract, so Liu is an internal worker of the company. The practice of signing an agreement on the day of dismissal on September 20, 2019 is obviously that the company wants to investigate the losses caused to the company by Mr. Liu during the existence of the labor relationship based on the newly formed civil relationship between the two parties due to the agreement, and impute all the responsibilities to Mr. Liu. As a social law, the labor law adheres to the principle of preferential protection of workers in terms of legislation. In the field of compensation for damages, the specific performance is that workers assume responsibility on the premise of intentional or gross negligence. However, the civil law adjusts the legal relationship between equal subjects, and the compensation for breach of contract losses does not presuppose that the defaulting party has fault. For the company, it is more beneficial for the company to "transform" the performance damage caused during the existence of labor relations into civil relations, including civil contracts, for adjustment. It is also easier to transfer the business operation risks of the employer.
Edit：Hou Wenzhe Responsible editor：WeiZe
Source：chinacourt.org
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