Pakistani bank praises Urumqi court for mediation in labor dispute

A Pakistani bank has expressed its gratitude to a grassroots court in Urumqi, capital of the Xinjiang Uygur autonomous region, for resolving a labor dispute through mediation. In a letter to the Xinshi District People's Court, the bank commended the judges for their professionalism, patience, and judicial efficiency in handling the case.

"The judges' efforts safeguarded the legitimate rights and interests of the employee while ensuring our bank's operations continued smoothly," the bank stated.

The bank praised the court for fostering a stable, fair, transparent, and predictable legal environment, enabling foreign enterprises to operate confidently and grow steadily in Urumqi, in Xinjiang and the whole China.

"The successful resolution of this case has reinforced our bank's confidence in investing and developing in Xinjiang, further supporting the economic progress of the China-Pakistan Economic Corridor under the Belt and Road Initiative," it added.

The dispute involved the bank and an employee surnamed Zhao, who joined the bank in 2016 and later became the head of its Urumqi branch. Zhao, who had an open-ended contract, was asked to rotate positions in 2024 due to Chinese financial regulations. Despite negotiations, Zhao refused the transfer, citing health, family, and language barrier concerns.

Following Zhao's refusal, the bank terminated his contract and offered compensation, which Zhao rejected. He returned the funds and did not hand over his duties, disrupting branch operations. Zhao sought labor arbitration to return to his original position, and the arbitration ruled in his favor. Dissatisfied, the bank filed a lawsuit in district court.

Acknowledging the case's complexity, involving both the bank's compliance under the Belt and Road Initiative and the employee's labor rights, the court opted for mediation. It explained to Zhao the labor contract law and the necessity of compliance with job rotation, while advising him that his inappropriate online comments about the employer could be legally problematic.

The court also informed the bank about the potential negative impact of Zhao's dismissal on its reputation and investment image in China, suggesting both parties reassess the compensation terms. As a result, Zhao agreed to remove the inappropriate online posts, and the bank consented to enhance the compensation package.

The court emphasized that this case exemplified the role of Chinese judicial services in supporting the initiative. Through mediation, the legitimate rights and interests of both Chinese and foreign parties were equally protected, demonstrating the wisdom of the Chinese judiciary, the court added.