Law & Policy

Three SAP Vice Presidents Sue Company For Disguised Dismissal

Zhang Xuesong, Wang Wen and Cai Jianming, three vice presidents of SAP China, have issued a statement through a lawyer that the parties will seek labor dispute arbitration and if the arbitration is unsuccessful, they will sue SAP China for disguised dismissal.

Early in July 8, 2008, Zhang Xuesong, Wang Wen and Cai Jianming, according to local media reports, expressed displeasure with the adjustment of the company's organizational structure in a public meeting and they were then dismissed from their positions. Over the past month, the three former vice presidents and SAP China have reportedly had arguments about the legality of SAP China's dismissal.

Chen Qingguang, a lawyer for Zhang Xuefeng, says that the labor contract is still in its period of validity and SAP China's behavior goes against China's Labor Contract Law. Chen told local media that the three persons have been trying to recover the labor relations, but have received no response. Therefore, they decided to seek labor dispute arbitration. If the arbitration is unsuccessful, they will bring SAP China to court for a civil action.

Chen adds that the possibility for the three former vice presidents to return to SAP China is small, so the future negotiation will be focused on the amount of material compensations. Although SAP China currently agrees to a compensation, the detailed plan is not acceptable and the persons involved are ready to initiate arbitration at any time.

Founded in 1972 and headquartered in Walldorf, Germany, SAP is one of the leading collaborative business solutions providers and an independent software supplier. Owning branches in more than 50 countries, SAP first established its Chinese branch in Beijing in 1995 and then extended to Shanghai, Guangzhou and Dalian. SAP's partners in China include IBM, HP, Sun, Accenture, Digital China and Hisense.

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