Sina Financial News Recently, the China Judgment Document Network released the civil judgment of the second instance of the labor dispute between Galaxy Securities and Zheng Zhili. Zheng Zhili, a former employee of Galaxy Securities, participated in Guotai Jun'an IPO project, but no related project bonus was received due to subsequent resignation. Zheng Quanzhi then sued his old owner Galaxy Securities to the court, which ruled that Galaxy Securities would pay him 896000 yuan of performance bonus for Guotai Jun'an project.
According to the data, on July 1, 2007, Zheng Zhili joined the Galaxy Securities Company. On January 21, 2008, both parties signed a written labor contract with a term from January 1, 2008 to December 31, 2010. After the expiration of the contract, both parties will renew the labor contract until December 31, 2013. On August 31, 2013, both parties signed《 Galaxy China Securities employees<Labor Contract>Supplementary Agreement. On December 20, 2013, Zheng Zhili signed the Labor Relations Management Notice. On January 1, 2014, both parties signed a non fixed term labor contract. On August 25, 2015, Zheng Zhili resigned.
During his tenure, Zheng Zhili participated in the project of "Guotai Jun'an Securities Co., Ltd. IPO" (i.e. "Guotai Jun'an Project"), which was approved for issuance on June 9, 2015.
During the lawsuit, Zheng Zhili submitted the Administrative Measures for the Performance Distribution of the Investment Bank Headquarters of China Galaxy Securities Co., Ltd. to the court. Article 51 of the Measures stipulates that the award amount standard for issuance and underwriting projects: in principle, the award amount for issuance and underwriting projects shall be implemented according to the conditions listed in the following table. The investment bank headquarters shall, according to the difficulty, project scale The project implementation cycle and other factors can be adjusted appropriately. The table shows that if the net income of the project is more than 100 million yuan (including 100 million yuan), the amount of award commitment (retroactive probation period) is 5 million yuan, and the amount of award commitment (after January 1, 2011) is 8 million yuan. Both parties agree that Zheng Zhili's contribution to Guotai Jun'an project is 11.2%. According to Article 22 of the Measures for the Management of Performance Distribution of the Investment Bank Headquarters of China Galaxy Securities Co., Ltd., the project net income=project income - consulting agreement expenditure (if any) - business agreement expenditure (if any) - project direct expenses - expected expenses incurred during the continuous supervision of the project.
The court of first instance held that according to the facts ascertained, both parties recognized that Zheng Zhili should enjoy performance bonus when participating in Guotai Jun'an project.
In the lawsuit, Galaxy Securities claimed that the return of Guotai Jun'an project was only 24516000 yuan, while the project expenditure was 40090300 yuan, so the net income of the project was negative and the conditions for distribution were not met. However, during the trial, Galaxy Securities Company admitted that it and Guotai Jun'an Company had undertaken projects with each other and had a wide range of accounts. The amount of 24516000 yuan received was the amount after offsetting each other's accounts. Galaxy Securities has not yet submitted the original accounting accounts, the transaction records of account information in the same period issued by the bank and other evidences to prove the actual arrival of accounts after being explained by the court. Galaxy Securities also recognized that Guotai Jun'an should pay 1721781.25 million yuan.
In addition, Galaxy Securities Company has issued the performance award of Guotai Jun'an project to its employees before the receipt of the 24516000 yuan collection claimed by it. Therefore, the court held that the opinion of Galaxy Securities Company that does not meet the conditions for distribution has no factual and legal basis, and the court refused to accept it.
According to Article 51 of the Measures for the Management of Performance Distribution of the Investment Bank Headquarters of China Galaxy Securities Co., Ltd., if the project's net income is more than 100 million yuan (inclusive), the amount of award undertaken (after January 1, 2011) is 8 million yuan. The Financial Statement of Project Closure submitted by Zheng Quanyi to the court shows that the income received from Guotai Jun'an project is 1721781.25 million yuan. Galaxy Securities called it the contract amount and accounts receivable, but the actual cost should be deducted.
Therefore, Galaxy Securities submitted its own calculation statement to the court, which showed that the actual expenditure of Guotai Jun'an project was about 40.0903 million yuan. However, Galaxy Securities also failed to provide evidence such as original accounts and bank transaction records to the court to support its claim. The court refused to accept the argument of Galaxy Securities.
And even according to the claim of Galaxy Securities, the actual expenditure of Guotai Jun'an project is RMB 40.0903 million, the net income of the project is still more than RMB 100 million, and the team's commitment award amount is still RMB 8 million. Both parties agree that the contribution of Zheng Zhili in Guotai Jun'an project is 11.2%, so the performance bonus of Zheng Zhili in Guotai Jun'an project should be 8 million yuan * 11.2%, totaling 896000 yuan. Galaxy Securities Company should pay Zheng Zhili the above performance bonus.
In the case of labor dispute between Zheng Zhili and Galaxy Securities, the People's Court of Xicheng District, Beijing has issued a civil judgment (2017) J0102MC No. 33702, and China Galaxy Securities Co., Ltd. paid Zheng Zhili 896000 yuan as the performance bonus for the "Guotai Jun'an IPO project". If the obligation to pay money is not fulfilled within the period specified in the judgment, the interest on the debt during the period of delayed performance shall be doubled in accordance with Article 253 of the Civil Procedure Law of the People's Republic of China.
As Galaxy Securities refused to accept the judgment of first instance, it later filed an appeal.
Galaxy Securities appealed for the cancellation of the first instance judgment, and said that Zheng Zhili participated in the Guotai Jun'an project during his tenure. As of the date of appeal, the project had no other income except the income of 24.516 million yuan received on August 29, 2017. The company does not have the conditions to pay Zheng Zhili the Guotai Jun'an project bonus, so the company does not need to pay Zheng Zhili the project performance bonus.
In this regard, Zheng Zhengquan argued that the reason why Galaxy Securities Company did not pay the bonus was resignation, not project losses, and that its company had already paid bonuses to other employees, which were treated differently.
After a retrial, the Second Intermediate People's Court of Beijing decided to reject the appeal and uphold the original judgment. (Cao Jie)
Responsible editor: company observation
