How Should Salary Standards Be Determined When Terms Are Unclear?

This article is reprinted from Shaanxi Workers’ Daily

Mr. Baishitong:

I am the owner of a building materials processing factory, operating on a small scale with few employees. I usually go out to secure orders and run the business, while the factory manager, Old Zhao, handles production. Old Zhao has been a friend of mine for many years, is very capable, and is fully responsible for recruitment, production, and quality control. However, a few months ago, Old Zhao was involved in a traffic accident and suddenly passed away. The factory’s work immediately fell into chaos. I finally managed to organize the production schedule, but then encountered a labor dispute. A new employee, Xiao Xiao, had only worked for three weeks before starting to take sick leave. I was already overwhelmed and had to find someone to fill in. I told him directly that if he couldn’t work, he could leave, since we didn’t sign a contract, and I could pay him the wages for the first three weeks immediately. But Xiao Xiao firmly refused, saying that this was illegal, and claimed that Old Zhao promised him a monthly salary of 5500 yuan when he was hired, and demanded to be paid his wages during his work period and compensation for illegal termination of the labor contract. However, as I understand, the wages of regular employees in our factory are about 4500 yuan. Xiao Xiao has only worked for three weeks, and no contract has been signed. Now that Old Zhao has passed away, he is making baseless claims. Please advise, in this situation, how should I determine his wage standard? If I want to dismiss him now, do I need to pay compensation?

Reader: Zhai Qiang

Comrade Zhai Qiang:

The “Labor Contract Law” stipulates that when an employer hires a worker, it must truthfully inform the worker of the job content, working conditions, work location, occupational hazards, safety production, and labor remuneration. The employer and the worker should sign a written labor contract, clearly specifying key terms such as contract duration and wages. If no written contract is signed at the time of employment, and the agreed-upon wages are unclear, the wages for newly hired workers shall be based on the standards stipulated in the collective contract; if there is no collective contract or it does not specify wages, equal pay for equal work shall apply. Additionally, the law clearly states that if a worker is ill or injured outside of work, and remains within the medical treatment period, the employer cannot terminate the contract on the grounds of unfitness for the position; otherwise, it constitutes illegal termination, and the employer must bear the responsibility of paying compensation for illegal termination. Xiao Xiao has been employed for less than a month and has not signed a contract. If he cannot provide evidence that he and the factory agreed on a monthly salary of 5500 yuan, then his wage agreement is unclear. You can determine his wage standard based on the legal provisions above. As for compensation for illegal termination, as long as Xiao Xiao’s sick leave is genuine, if you terminate the contract during his medical period, it would indeed violate legal regulations. If Xiao Xiao does not request reinstatement, you should pay him compensation for illegal termination.