CICA Security Involved In The Enrollment Storm Of The Contract School: The Liquidated Damages Were Only 3000 Yuan. The Lawyer Said That The Enterprise Should Compensate For Reasonable Expenses

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On June 9, CICA security ranked first on the hot search list of pulse platform. The topic was about its large-scale termination of enrollment. This is only four months from the safe listing of CICA. In response to this matter, the reporter learned through multiple interviews that CICA security did indeed dissolve the recruitment group of flying book school on June 6, and successively informed the signed students that they need to terminate the contract.

CICA security pointed out to the reporter that according to the changes in the market environment in the first half of the year, the company has adjusted the scale and direction of some products and services, and some fresh students who have not yet joined the company will face the cancellation of offers. The company has provided internal job transfer opportunities as far as possible, and the company will provide financial compensation for students who fail to arrange ideal jobs.

The sudden dissolution of the flybook contact group and the re interview of the school's enrollment and job transfer are required, and the liquidated damages are only 3000 yuan

Mr. Li, a graduate of the 2022 industrial research program, told the reporter that CICA security went to his school to recruit students in mid October 2021 and successfully signed a contract with him in November.

Source: Interviewees

During this period, CICA security often shared some dry goods and activity photos through the flybook group. From April to may 2022, the atmosphere within the group was quite active, and there was no sign of termination.

Interactive pictures related to flying book group source: Interviewees

However, on June 6, CICA security suddenly issued a notice saying, "due to the recent group review and refresh of the company, we will no longer use the form of flybook group to interact and notify with you. This group will be dissolved soon, and the subsequent communication methods will be notified separately". After that, all the students in the group are removed from the group.

Source: Interviewees

After many exchanges, Mr. Li found that his experience was not a case, so he established a rights protection group with students who had related experiences. According to the reporter, there are more than 330 people in the group at present.

Several fresh students reported that after the flybook group was forced to disband, they were even unilaterally deleted by HR from the social platform contact information. In the next few days, many students received the notice of termination of CICA security requirements.

On June 9, Mr. Li also received a telephone notice from CICA security. The other party asked him to be transferred from the production research related position to the sales position, and he needs a new interview, otherwise he will ask for termination.

Li said: "if the company doesn't want to hire, it can cut off the interviewers in the sales interview. I don't think this is an appropriate way to deal with it. In addition, the notice to terminate the contract only in June will make fresh students face the pressure and difficulties of finding a job.".

The reporter learned that after receiving the notice of CICA's safe termination, some school recruits have submitted more than 40 resumes, but they have basically failed. Li said with emotion, "it's not easy to get two replies. As a result, the company only needs 2023 fresh students. We are 2022, and still have no chance.".

The reporter observed in the group of rights protection and heating that many students have rented houses near the company and are facing the pressure of rent liquidated damages while being safely terminated by CICA. In this regard, as Mr. Li said, some of the terminated students received a commitment of 3000 yuan of liquidated damages from the company, while some students did not receive a similar notice.

Image source: group chat records

Lawyer: the enterprise shall at least compensate the parties for the expenses incurred in performing the contract

According to the terms of the agreement provided by classmate Li to the reporter, the situation in which this agreement can be terminated involves the part of Party A that is "cancelled or declared bankrupt according to law", but there are no further supplementary terms and clear provisions on the responsibilities of each party for other termination situations.

In this regard, Ouyang Yipeng, a lawyer from Beijing Jingshi (Zhengzhou) law firm, told the reporter that the university generally signs a tripartite agreement with enterprises. The tripartite agreement is an appointment contract for signing a labor contract, which is protected by the civil code. Because the "appointment contract" is formulated to reach the contract, although the appointment contract is an independent contract, the legal and effective appointment contract should also be observed by the parties, so the appointment contract is violated, The scope of compensation includes the costs in the process of contracting and the benefits that can be obtained after the performance of the contract.

There are some unreasonable points about the above-mentioned treatment of the 3000 yuan liquidated damages.

Ouyang Yipeng further pointed out that if an enterprise violates an advance contract, it should compensate the parties for the loss of trust interests. The scope of loss of reliance interest includes the expenses incurred in the process of contracting and the benefits that can be obtained after the performance of the contract, but shall not exceed the loss of breach of contract that can or should be foreseen by the party entering into the contract at the time of the conclusion of the contract.

Therefore, the enterprise shall at least compensate the parties for the expenses incurred in the performance of the contract, such as the loss of income during unemployment, travel expenses, accommodation expenses, expenses incurred in preparing for the performance of the contract, and may also claim compensation for the loss of expected interests after the performance of the contract.

In Ouyang Yipeng's opinion, the tripartite agreement signed by the school enrollment office has far less protection for the school enrollment party than the labor contract law, resulting in low enterprise illegality.

Therefore, he suggested that, in the event of an enterprise breaking the contract, the graduates should do the following three things: first, contact the enterprise party in time to determine whether the other party will continue to perform the contract. If the contract cannot be performed, confirm who the responsible party is and fix the evidence. Second, seek the help of the school in time, and require the school to timely follow up and urge the enterprise to correct its improper behavior. Third, timely fix the preservation of the other party's evidence of breach of contract, relevant notice and chat records, and jointly safeguard their own rights and interests through citizen supervision, public opinion supervision, legal supervision and other means.

It is worth mentioning that, according to the reporter's understanding and observation, there have been a number of recent incidents involving enterprises breaking contracts. According to Sina Weibo hot spots, in the past seven days, from the change trend of the heat index, the heat of "contract breaking fresh students" reached a peak of 15.68 at 17:00 on June 10. Among all the related information, the words mentioned most frequently are contract breaking, layoff and enterprise.

Source: Sina Weibo

Zhang Xiang, a distinguished expert of China Federation of Expo think tanks, believes that the breach of contract will reduce the reputation and credit of CICA security. In the future, graduates may avoid the choice when looking for jobs, which will bring talent losses to CICA security. However, due to the low or even zero cost of breaking contracts, such market-oriented behavior may still be normal.

The higher point of the share price dropped by 40%, and the loss in the first quarter of listing was 78.25 million yuan

As a network security enterprise, CICA security was officially listed on the science and Innovation Board of Shanghai Stock Exchange on February 9, 2022, with an issue price of 30.51 yuan / share and a stock code of 688225. On the first day of listing, CICA security hit a maximum of 41.55 yuan / share, and finally closed up 27.5%, with a total market value of over 15.5 billion yuan.

Reviewing the stock price performance of CICA since its listing, it can be said that "listing is the peak". After rising sharply on the first day of listing, its share price fluctuated downward, falling to a low of 18.32 yuan / share.

It is worth mentioning that the deviation of daily closing price increase in three consecutive trading days on June 1, June 2 and June 6 has reached 30% in total, and there are abnormal fluctuations in stock trading.

On June 7, CICA security issued an announcement on abnormal fluctuations in stock trading. At the same time, it pointed out that through the company's self-examination, the company's recent daily operation was normal without major changes. The market environment and industrial policies have not been significantly adjusted, product R & D, production and sales have been promoted normally, and the internal production and operation order is normal.

As of the closing on June 10, CICA security's share price closed at 22.47 yuan / share, with the latest market value of about 8.988 billion yuan, down more than 40% from the highest value.

At the same time, in terms of performance, the performance of CICA's safe listing in the first quarter was not brilliant.

According to the latest financial report of CICA security, in the first quarter of 2022, its operating revenue reached 285million yuan, a year-on-year increase of 9.85%; The net loss attributable to the owners of the parent company reached 78.25 million yuan, compared with 1.13 million yuan in the same period last year, an increase of 6824%.

On April 29, CICA security issued an announcement on the adjustment of the company's organizational structure. According to the announcement, the adjusted organizational structure includes eight parts: marketing and service platform, customer success platform, strategy and market platform. This also confirms the statement made by CICA security in June that "the scale and direction of some products and services have been adjusted".

Zhang Xiang pointed out that under the background of rapid market changes, the positions and demands within the enterprise will also change. However, the school recruitment is generally signed in advance. When the positions are cancelled, the contract may be broken. As a typical Internet company, CICA security is in a state of loss at the same time and faces the problem of employment cost.

He believes that for the enrollment of the University, if the job is changed, it will also face losses, because after the job is cancelled, the previous knowledge reserve will not be used, which is a waste of knowledge.

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