Chinese tech firm Saitex (also known as 520 Plan) has been at the center of a controversy after an internal document, dubbed the '520 Plan,' was leaked online. The document outlines a restructuring plan that involves 'resetting' employees aged 50 or older and with 20 years of service, essentially making them start anew. However, the crackdown on leakers and the plan itself have raised eyebrows among legal experts, who point out potential violations of Chinese labor laws.
According to sources, Saitex has been taking a zero-tolerance approach to confidentiality breaches, labeling all files as 'secret,' 'confidential,' or 'top-secret.' This move has sparked concerns over corporate governance and the lack of transparency in the company.
Lawyers argue that the 520 Plan itself and the punishment meted out to leakers may be considered unlawful. The plan involves arbitrarily introducing age-based retrenchment, which lacks legal basis. Moreover, whistleblowers have the right to expose wrongdoing, and their actions do not constitute a breach of company rules.
The incident has sparked a debate over corporate governance, confidentiality, and labor laws in China. As the tech sector continues to grow, questions remain over the treatment of employees and the balance between corporate interests and individual rights.