Law & Policy

Siemens China Loses Lawsuit Against Former Employee

Shanghai Pudong Labor Dispute Arbitration Commission has judged Siemens (SI) China to be the loser on an appeal in which it sought CNY300,000 in compensation from a former employee who refused to work for the company for three years after a two-year training period.

Siemens China sued Peng Jia, who signed a two-year contract with FESCO Nanjing in 2005 and was dispatched by the FESCO to work in Siemens. Though Peng signed a training agreement with Siemens on July 11, 2005, he didn't want to work for the company after his contract with FESCO Nanjing expired this year. As a result, he was sued by Siemens who asked for compensation. However, SPLDAC believed that the employer of Peng should be FESCO Nanjing instead of Siemens, hence it made this judgment.

Siemens has not made any comment on the arbitration result.

In 2005, Siemens China launched a training program called "Sales 100" for newly graduated college students. Under this program, students are asked to work for Siemens for three years after a two-year training offered by Siemens, or they need to pay up to CNY300,000 to Siemens.

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