Summary of Key Points
This summer, several companies (such as Xingyu Co., Ltd. and a technology firm) have breached their agreements with recent graduates or maliciously transferred their positions. Some companies canceled contracts just a few days before new employees were set to start working, while others forced them to switch to assembly lines, resulting in reduced salaries and ultimately leading to their departure. Graduates face difficulties in seeking compensation, missing out on employment opportunities, and losing their status as recent graduates. Even if the companies offer a small amount of compensation, it is far from covering the actual losses incurred by the students. These incidents highlight the imbalance of power between companies and graduates, as well as the vulnerable position of recent graduates in the job market.
Two Types of Deceptive Practices by Companies in Breaching Agreements
Companies do not simply say “we no longer need you”; instead, they use two tactics:
1. Cancelling Contracts at the Last Minute Before Employment: For example, Zhou Shulin from a technology firm was notified by HR five days before starting work that he should consider other opportunities, with arbitrary reasons given (such as “fear of not being able to adapt”). The student had already rented a place and rejected other job offers, so after the spring recruitment period ended, he had to start looking for a new job.
2. Forcing Graduates to Leave in a Deceptive Manner After Employment: Xingyu Co., Ltd. was even more aggressive. They first had the graduate officially start work and enroll in social insurance, effectively removing him from the category of recent graduates. Then, they transferred him to an assembly line job, reducing his salary from the standard offered during the recruitment process to 20 yuan per hour, with 11-12 hours of work per day. He was either forced to resign and receive half a month’s compensation or stay on as a regular employee, with no other choice.
The common factor in both tactics is that they put the students in a passive position, resulting in losses far greater than the compensation offered by the companies.
Why Do Companies Dare to Breach Agreements Arbitrarily?
From the company’s perspective, these actions are “cost-effective”:
- Low Compensation Costs: Recent graduates have not contributed much to the company’s value, so the compensation (usually half a month’s salary) is much less than what would be paid to dismiss more established employees.
- Pressured by Business Conditions: During economic downturns, companies need to cut costs. Dismissing recent graduates can quickly save money and have an immediate impact on financial reports.
- Taking Advantage of Policy Loopholes: Some companies recruit recent graduates to receive government subsidies (such as social insurance benefits or tax refunds) but may decide to cancel the contracts later when they realize they are not needed.
- Countering the Risk of Students Breaching Agreements: Students may also break their agreements if they receive better offers. To mitigate this risk, companies issue multiple offers and then dismiss the excess candidates.
Given the difficulty for graduates to seek compensation, companies feel emboldened to act unethically.
How Difficult is It for Graduates to Seek Compensation?
Graduates face three major challenges in seeking compensation:
1. Long Arbitration Processes and Low Compensation: Labor arbitration takes 3-6 months, and graduates, with their short tenure, can only receive half a month’s salary in compensation, which is not enough to cover expenses like rent and job-seeking costs.
2. Irreversible Loss of Status: Once enrolled in social insurance, graduates lose their status as recent graduates. If they do not get hired through the regular recruitment process, they end up with no advantages.
3. Power Imbalance with Companies: Most graduates lack experience and are at a disadvantage when dealing with corporate HR departments.
However, the Xingyu incident has shown a new approach: targeting the companies’ “weak points.” For example, graduates can send complaints to the companies’ clients (such as BMW and Mercedes, since Xingyu is a supplier) or to the stock exchange (if the company is listed). These methods are faster than arbitration and often lead to more favorable outcomes (Xingyu eventually offered a 15,000 yuan compensation).
The Imbalance in the “War” Between Graduates and Companies
The most unfair aspect is that companies face minimal consequences for breaking agreements, while graduates suffer significant losses:
- Companies: The maximum penalty for breaking an agreement is a few thousand to ten thousand yuan, which is a drop in the bucket for large companies.
- Graduates: They lose the entire spring recruitment period, other job offers (like Zhou Shulin, who gave up a better opportunity), as well as rent and time costs. In the worst cases, like Zhou Shulin, they lose their status as recent graduates, which can impact their career paths.
Zhou Shulin’s words are poignant: “Companies only pay a small amount for breaking agreements, but we lose all our opportunities.”
A Harsh Lesson: Society Teaches That Promises Are Not Always Reliable
For recent graduates, this is their first “real-world lesson” after leaving school:
- Even with a signed tripartite agreement (between the school, the student, and the company), companies may still break their commitments.
- When choosing a job, consider not only the salary but also the company’s integrity and stability.
- If problems arise, do not try to handle them alone; instead, contact the company’s clients or regulatory authorities (such as the stock exchange), as this can be more effective.
This incident also highlights the need for fairer rules in the job market—more stringent penalties for companies that breach agreements with recent graduates to protect their rights. Otherwise, more students will continue to face unfair treatment in their job search.
This news is not an isolated case but reflects the difficulties faced by recent graduates in today’s job market. Companies have more power, and graduates need more protection and support. It is hoped that future systems will be improved to prevent them from having to “ swallow their grievances and start over.”