According to ChainCatcher news and Shenzhen News Network, the People's Court of the Qianhai Cooperation Zone in Shenzhen recently made a ruling on a labor dispute case involving the payment of wages in virtual currency. The case originated in June 2021, when the plaintiff, Zhou, joined a company as a senior engineer and claimed that he had agreed with the company on a monthly salary of 45,000 yuan, of which 20,000 yuan would be paid through bank transfer and the remaining 25,000 yuan in the form of USDT. Two months later, the company terminated the labor contract on the grounds of 'skills not matching,' but did not pay the agreed portion of the salary in virtual currency.
The court ruled that, according to the notice issued by the central bank and ten other departments in September 2021 (on further preventing and handling the risks of speculation in virtual currency trading), virtual currencies including Bitcoin, Ethereum, and USDT do not have legal tender status. Meanwhile, Article 50 of the Labor Law and Article 5 of the Interim Provisions on Wage Payment clearly stipulate that wages must be paid in legal currency on a monthly basis and cannot be replaced by other forms. Ultimately, the court only supported the plaintiff's claim regarding the illegal termination of the labor contract and ruled that the company should pay 10,000 yuan in compensation. The case was upheld by the Shenzhen Intermediate People's Court in the second instance.