Is it legal to dismiss an employee for "flipping orders"?

Date:2026-08-26 09:56:16  Views:4

Wang joined a technology company in Shandong in March 2019 as a sales manager, with a salary structure of base salary plus commission. The company's "Management Measures for the Salary of Marketing Center Business Managers" clearly stipulate that if a business manager engages in 11 types of violations during their tenure, such as leaking company secrets, reselling project information, taking part-time jobs in other enterprises, or privately selling other people's products, the company will deduct their salary, withhold commissions, recover sales expenses, criticize and educate them, dismiss them, or even transfer them to judicial authorities depending on the severity of the situation. This system has been formulated in accordance with the law and has been publicly announced to Wang.


In July 2023, the company discovered through investigation that Wang took advantage of his position to privately transfer orders that should have been taken over by the company to competitors. The company terminated the labor contract with Wang based on this. Wang applied for labor arbitration, claiming that the company illegally terminated the contract and demanded compensation. After the labor arbitration rejected his application, Wang was dissatisfied and sued to the court.


After trial, the court found that a certain technology company in Shandong has formulated the "Management Measures for the Salary of Marketing Center Business Managers", and the company has consulted opinions and organized training through online and offline methods when formulating the management measures. The management measures can serve as a basis for employers' employment management.


During his tenure, Wang engaged in the behavior of flying orders and selling other people's products privately, which violated labor discipline and professional ethics, as well as the company's "Marketing Center Business Manager Salary Management Measures". Therefore, the company's termination of the labor contract on this grounds does not violate any legal provisions.


In summary, the court has lawfully rejected Wang's lawsuit request. Wang appealed against the verdict and the second instance court upheld the first instance verdict.


Flying orders "refer to the use of customer resources, business channels, and commercial information acquired by employees during their employment to transfer business orders belonging to the employer to other competing entities.


According to Article 3, Paragraph 2 of the Labor Law of the People's Republic of China, workers shall complete their labor tasks, improve their vocational skills, comply with labor safety and health regulations, and abide by labor discipline and professional ethics. Labor discipline can be a written provision included in the rules and regulations of the employer, or it can be an internal or recognized code or norm within the industry. If the rules and regulations formulated by the employer do not violate laws, administrative regulations, and policy provisions, and comply with internal or recognized rules or norms in the industry, there are no obvious unreasonable situations, and they have been informed to the employees, they can be used as the basis for their employment management.


Wang has engaged in serious fraudulent behavior, violating the principles of loyalty and good faith, and seriously violating the company's established rules and regulations, causing damage to the company. According to Article 25 (2) of the Labor Law of the People's Republic of China, if an employee seriously violates labor discipline, the employer may terminate the labor contract. Therefore, the employer's termination of the labor relationship with the employee based on this is a legal termination and does not require payment of compensation.


The act of 'flying orders' is not a shortcut to personal gain, but a violation of professional ethics and legal bottom line. For workers, faithful performance of duties and honest employment are basic requirements; For employers, improving rules and regulations and standardizing notification procedures are important guarantees for safeguarding their legitimate rights and interests. Legal employment and honest labor are the foundation of harmonious and stable labor relations.



This article is transferred from the WeChat official account "Shandong Gaofa". Thank you!