In Oct 2005, an IT company in Beijing signed one-year labor contracts with several employees, and they renewed the contracts in Oct 2006. When the contracts came to the end in Oct 2007, the company rejected to renew the contracts, but asked the employees to contract with an as-sociated company. The employees rejected this, but the practical labor relationship continued. Meanwhile,the company was in arrears of em-ployees' salaries, and didn't make full pay of the mandatory social insurance forced by national laws,even peculated the housing fund withheld from employees' salaries.In Aug 2008, under the commission of several employees of the company, a law-yer appealed to Labor Arbitration Com-mittee and required the company to pay compensation, the owed salaries, double time since January 1st, 2008, and to make supplementary payment of social insur-ance and so on. The result of the case was that the company agreed on part of the above requirements after the mediation.However, not long after the case, these employees were dismissed, with two of them have found jobs, and others still un-employed.