Donglai Founder Clarifies Four-Year Contract Policy, Emphasizing Full Compliance with Labor Law and a Mission to Cultivate Healthier Lifestyles

Deep News
Sep 14

On the evening of September 14, the founder of Pangdonglai, Yu Donglai, took to social media to address the recent announcement regarding a four-year contract system for new employees. Yu explained that the company's core objective is to cultivate a community that understands scientific, relaxed, and healthy living, which in turn can inspire broader society to pursue a more joyful and fulfilling existence. He stressed that the four-year trainee program serves this exact purpose and urged the public not to misinterpret its intent, reaffirming that all employment and labor relations will strictly adhere to the national labor law.

The previous day, on September 13, Yu had declared that all forthcoming hires at Pangdonglai would be designated as trainees. Under this model, the company is committed to teaching employees scientific and civilized life philosophies, fostering independent personalities, and providing relevant technical training. The contract period is set for four years, with no renewal upon completion, after which individuals are expected to re-enter society. This initiative aims to contribute more outstanding talent to the workforce, while exceptional professionals may remain with the company to serve as mentors, much like teachers. Yu further expressed his hope that this group will exemplify high work quality and a sunny disposition, radiating positive energy to bring more beauty to society.

In response to public inquiries, a customer service representative from Pangdonglai's official website stated on the morning of September 14 that the company maintains its "school-like" identity. They emphasized that they are currently in an exploratory phase, developing a scientific training mechanism. The central goal is to enable employees to achieve personal growth within four years, allowing them to live in a state of well-being and happiness. Ultimately, this is designed to provide society with individuals of high value and strength. When asked about legal compliance, the staff member explicitly confirmed, "We will strictly enforce all relevant regulations under the national Labor Law and Labor Contract Law."

However, regarding specific implementation details—such as whether the policy would apply to new stores in Zhengzhou or how distinctions will be made between new and existing employees—the representative indicated that no official notification has been received yet. They advised the public to await formal announcements from the company for further clarification.

According to a report from The Paper on September 14, legal expert Liu Kai, a lawyer at Beijing Zhongwen Law Firm, offered his analysis on the legal boundaries of Pangdonglai's new employment model. Liu noted that labeling employees as "trainees" does not alter the substantive labor relationship between the two parties. The legality of employment hinges on the actual duties performed, not merely the job title or label assigned by the enterprise. He suggested that the compliance of such a model depends not on its name but on whether it violates the baseline of labor law during execution. If the company genuinely implements a talent development plan—signing contracts, paying full wages, contributing social insurance, guaranteeing rest periods and other statutory rights over the four years, and providing due compensation upon termination without resorting to tactics like contract-switching to avoid indefinite employment—then the model may not be unlawful. Conversely, Liu warned that if the so-called "four-year trainee system" is merely a guise to evade long-term employment obligations, treating workers as disposable resources subject to unconditional dismissal every four years, or if it fabricates trainee identities to skip wages, insurance, overtime pay, or severance, then no matter how polished the contracts appear, they will not automatically receive legal recognition.

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