China executive fired over annual leave as company prizes without authority, wins lawsuit

A Chinese employee who awarded annual leave as prizes at her company’s year-end party without the firm’s approval was dismissed for “misuse of power”.

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However, she subsequently sued her employer for 330,000 yuan (US$45,000) in compensation and won.

The woman, surnamed Lv, from Guangzhou in southern China’s Guangdong province, began her job as a pharmacy team leader at a pharmaceutical company in January 2021.

To motivate her team, Lv used paid annual leave as prizes during the company’s year-end party. Some of the winners have already taken their extra leave of three to seven days.

On September 20, 2023, the company fired Lv, citing “abuse of power, malpractice, fraud, and personal profiteering” as reasons for her dismissal.

The company leave prizes were offered by the team leader at a year-end office party. Photo: Shutterstock
The company leave prizes were offered by the team leader at a year-end office party. Photo: Shutterstock

In addition, Lv faced accusations of inflating team performance and improperly collecting 200 yuan (US$27) a month from team members for activity fees.

  

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