According to the law, the company is in arrears with wages. In this case, the company is not illegal. Employees can only choose to accept or submit their resignations without any compensation.
Legal basis: People's Republic of China (PRC) Labor Dispute Mediation and Arbitration Law.
Article 4 In the event of a labor dispute, the laborer may negotiate with the employer, or request the trade union or a third party to negotiate with the employer to reach a settlement agreement.
Article 5 In the event of a labor dispute, if the parties are unwilling to negotiate, fail to negotiate or fail to perform after reaching a settlement agreement, they may apply to a mediation organization for mediation; Unwilling to mediate, failing to mediate or failing to perform after reaching a mediation agreement, it may apply to the Labor Dispute Arbitration Committee for arbitration; Anyone who refuses to accept the arbitration award may bring a lawsuit to the people's court unless otherwise stipulated in this Law.
Article 6 In the event of a labor dispute, the parties have the responsibility to provide evidence for their claims. If the evidence related to the disputed matter belongs to the management of the employer, the employer shall provide it; If the employer fails to provide it, it shall bear the adverse consequences.