A recent judgment issued by the Tianjin No.1 Intermediary Court involved an employee, working under the Flexible Working Hours System (“FWHS”), who was terminated after failing to return to work after taking her annual leave. The employee filed a complaint with the Labor Arbitration Commission and then the Intermediary Court, seeking unpaid overtime as well as damages for termination. Surprisingly, the judge upheld the employee’s claim for overtime, because despite the fact she was under the FWHS, she actually worked six days a week and 7.5 hours a day, which does not comply with the nature of the FWHS. Her actual working time was still calculated according to days or weeks, so the FWHS was not actually observed. This judgment reflects the importance of employers who use the Flexible Working Hours System for employees to ensure the system is actually observed in practice.