Alert: You May Get Fired for Sleeping in Office — But This Employee Just Won Rs 41 Lakh in Compensation! 

In an unusual and landmark decision, a court in Jiangsu, China, has ordered a chemical company in Taixing to pay 350,000 yuan (approximately Rs 41 lakh) in compensation to a former department manager, Zhang, who was dismissed for taking a nap during working hours. The ruling underscores the importance of fairness and proportionality in workplace terminations and serves as a reminder to companies about the need to balance employee discipline with rights.

The Incident and Termination

Zhang had worked for the company for over 20 years before he was fired in early 2024 after being caught napping at work. The incident was discovered through workplace surveillance, which showed Zhang sleeping for about an hour during his shift. According to reports, Zhang admitted to sleeping at his workstation due to exhaustion, acknowledging his actions in a signed report from the company’s HR department.

Following the event, the company issued a formal termination notice, stating that Zhang's behaviour violated its zero-tolerance disciplinary policy. Despite his long service and positive work history, the company argued that his actions merited dismissal, and with the approval of the company union, they ended his employment contract.

Zhang’s Challenge to the Dismissal

Displeased with the company’s decision, Zhang decided to contest his dismissal in the Taixing People’s Court. His legal team argued that, while companies have the right to establish rules and enforce them, disciplinary actions such as termination must be justified and proportionate to the severity of the offence. Zhang’s legal team highlighted his long tenure, including multiple promotions and a consistent salary increase throughout his career with the company.

Zhang’s case gained attention after WeChat messages from the company’s HR department were leaked, revealing his admission that he had slept for about an hour during his shift, but had done so out of exhaustion. Despite this admission, Zhang contended that the company’s decision to fire him for a first-time offence was excessive, particularly considering his many years of service and positive performance record.

The Court’s Ruling

After reviewing the case, Judge Ju Qi of the Taixing People’s Court ruled in Zhang’s favour, ordering the company to pay 350,000 yuan (approximately Rs 41 lakh) as compensation. The judge emphasized that, while companies are within their rights to create workplace rules and terminate employees for violations, the disciplinary actions must be proportional to the offence committed.

Judge Ju pointed out that sleeping on the job was Zhang’s first offence, and it did not cause significant harm to the company. The court also considered Zhang’s long tenure, his consistent performance reviews, and his record of loyalty and service over two decades. Given these factors, the court found that the company’s decision to terminate Zhang for a relatively minor infraction was disproportionate and unjustified.

Significance of the Case

The ruling is significant as it sets a precedent for the fair treatment of employees in disciplinary matters and highlights the importance of proportionality in workplace actions. While companies are entitled to enforce rules and take action against employees who breach them, the dismissal process should not be arbitrary or excessive. This case has garnered attention as it deals with a common workplace issue: how companies handle employee infractions and the consequences that follow.

Proportionality and Fairness in Disciplinary Action

The court’s decision emphasizes the principle of fairness in employment matters. In its judgment, the court underscored that disciplinary actions should not be handed out lightly and should always take into account the employee’s work history, the nature of the offence, and its impact on the company. The court found that while sleeping on the job was a violation of the company’s policy, it did not justify the extreme step of termination, especially in the context of Zhang’s two-decade-long service and his otherwise impeccable record.

By ordering compensation, the court effectively sent a message that employers cannot disregard an employee's years of hard work and dedication over a single mistake, particularly when that mistake does not cause substantial damage to the company.

Impact on Employee Rights and Company Policies

This case could have wider implications for employment law in China and other countries, particularly concerning the rights of employees in the face of company policies. As workplace surveillance becomes more common and stricter policies are enforced, employees may find themselves at greater risk of being terminated for even minor infractions. This ruling suggests that companies need to strike a balance between enforcing policies and treating their employees fairly, especially when considering an individual’s entire employment history.

For employers, this case serves as a reminder that zero-tolerance policies should be applied reasonably and that disciplinary action should not be taken hastily. Employers should also ensure that they have clear guidelines for employee behaviour and termination procedures to avoid any legal disputes like this one.

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