Allegations of Misconduct at Huazhi Yunchang Technology Co., Ltd.: Workers Report Salary Issues and Investigation
Published on: November 23, 2024
Recently, multiple employees from Zhejiang Huazhi Yunchang Technology Co., Ltd. (hereinafter referred to as “Huazhi Yunchang”) and its affiliates have reported to Hongxing News that the company has been experiencing irregularities since August, affecting locations in Hangzhou, Zhoukou, and Kunming. Some employees claim that certain management members were taken away for investigation, although the specifics of the case remain unclear
Company Background and Previous Recognition
Hongxing News found that Huazhi Yunchang was awarded the title of “Compassionate Enterprise Supporting the Disabled” by the China Disabled Persons’ Federation. The company claims to be dedicated to solving employment and development issues for four key groups: people with disabilities, veterans and their families, university students and recent graduates, and individuals facing employment difficulties. Previous media reports stated that Huazhi Yunchang “helped 5,000 people with disabilities achieve remote employment.”
On November 20, 2024, relevant departments in Zhoukou confirmed to Hongxing News that local police are currently conducting investigations, and a task force has been established by the local government to address issues related to the company.
Employee Experiences and Concerns
Mr. Chen, an employee at Huazhi Yunchang, provided promotional materials from the company and stated that it claims to resolve employment issues for disabled individuals, veterans, students, and employment-challenged households. The company has reportedly established “employment cloud platforms” in Zhoukou, Luohe, Kunming, and Hebi.
After joining the company in April 2023, Mr. Chen expressed disappointment, stating that the work was not aligned with the company’s advertised mission of assisting people with disabilities in gaining employment. Instead, he claimed the company treated their employment as a product, engaging in tax-related activities and selling tax invoices. “Since we have disabled individuals, we can reduce taxes. The client companies can pay less tax by processing payments through us; we essentially earn without taking service fees.”
Mr. Zhang, who has a visual impairment and joined Huazhi Yunchang in August 2024, echoed Mr. Chen’s concerns. He described a swift hiring process where the HR personnel were overly eager to bring him on board. After expressing interest in the job, he was asked to sign an electronic contract and submit personal documents, including his ID and disability certificate.
When discussing the abundance of disabled individuals being hired, Zhang noted that HR hinted that employing disabled people also benefits the company. “He answered the question very vaguely, but he did confirm it,” Zhang recalled.
Tax Benefits and Ethical Concerns
Mr. Chen explained that the underlying logic of the company’s operations was to leverage government policies that provide tax advantages for hiring people with disabilities. The disabled individuals are used to help client companies evade taxes and gain subsidies. “They employ disabled people to secure government subsidies, constantly shifting them between companies while keeping the same group of disabled employees, effectively exploiting government funds,” he stated.
According to a report by Henan Daily in May 2023, Huazhi Yunchang had absorbed thousands of employees, 90% of whom were disabled, working in roles such as internet backend review, data labeling, voice customer service, and short video operation, with salaries exceeding 3,000 yuan monthly. The company aimed to help 5,000 disabled individuals achieve remote employment by the end of the year.
Zhoukou was touted as a “demonstration area for remote employment.” By July 2023, Huazhi Yunchang had completed three phases of office space construction totaling 4,500 square meters, with plans to expand to 20,000 square meters in the following six months.
Issues of Employment Reality
Despite the company’s claims, multiple disabled individuals who found jobs through Huazhi Yunchang reported that most could only earn salaries between 2,000 and 3,000 yuan, far from the promised figures. Many expressed that they had received little to no meaningful work.
Mr. Wang, another disabled worker who signed a contract on September 16, 2024, was offered a “remote work” position with a monthly salary of 2,100 yuan, which required training in Excel and video editing. He stated that from the time he signed until early November, he had not engaged in any actual work, only undergoing training.
Mr. Chen confirmed that long-term training without real work was common, especially in Zhoukou, stating, “It’s mostly for show. These disabled employees also have to help promote the company externally by filming documentaries or posting on social media.”
Investigation and Government Response
As of November 20, 2024, Zhoukou authorities confirmed that police investigations into Huazhi Yunchang were ongoing, and a government task force was formed to address issues related to unpaid wages and other concerns.
Additionally, several Huazhi Yunchang employees noted that their labor contracts were tied to different entities, a common situation in the company’s structure. Mr. Wang, whose actual labor relationship was with Hangzhou Aishouru Technology Management Co., Ltd., found after joining that his employment had changed to this other entity, which was not initially disclosed during the hiring process.
Before the chaos at Huazhi Yunchang erupted, issues had already appeared within its subsidiaries. For instance, the Aishouru team saw reductions in workspace and resources as early as January 2024, leading to layoffs and wage disputes for over thirty employees, including Mr. Wang.
As of late October, reports emerged that several management members were taken by the Hangzhou Economic and Technological Police for investigation, while the company’s operations came to a standstill. Employees were left without guidance on how to pursue their unpaid wages.
Hongxing News continues to investigate the situation, and employees remain uncertain about their future with the company.
