When a company unlawfully terminates employment, the compensation equals twice the standard severance amount

Cost: There is no direct cost involved. However, arbitration can take several months to resolve, and you must remain actively involved throughout this period without being able to drop the process midway.
In plain terms: If a company unlawfully terminates an employee, the compensation payable is twice the standard severance amount — commonly referred to as “2N.” Whether termination qualifies as unlawful depends on specific circumstances. It’s advisable to seek legal aid or consult an attorney first to determine whether negotiation with the employer or pursuing arbitration is the better course of action.
Benefit: Under labor law, employers who unlawfully terminate or end employment contracts must pay compensation equal to twice the standard severance amount outlined in Article 47 of the law. This means first calculating the standard severance figure and then doubling it for payment to the employee.
Evidence grade: A
Sources:全国人大常委会 (2007). 中华人民共和国劳动合同法（2008 年 1 月 1 日施行）（第八十七条）. http://www.gov.cn/gongbao/content/2007/content_711013.htm
Notes: This is the commonly known “2N” compensation rule. Whether termination qualifies as unlawful hinges on particular facts and conditions. Seek legal counsel first; further guidance on next steps is provided in Section 7.