A Chinese employee of a high-tech company has lost the compensation of more than 600,000 yuan (S$116,000) he received for being fired after he was spotted at China's holiday island, Hainan, while he was supposed to be on medical leave for about two weeks.

In mid-April, a court in Beijing upheld that the decision to fire him was befitting, following a long saga that started in 2019.

The man, surnamed Xu, had originally applied for annual leave in 2019 from end-July to mid-August as he planned to take his child to Hainan, according to a report in National Business Daily.

But his request was rejected because a vital project needed manpower, reported The South China Morning Post.

Subsequently, he took medical leave between July 18 and 31 for a headache and a serious back condition that hindered his mobility, according to a medical note, which also recommended Mr Xu to be on "bed rest" and perform neck exercises.

However, during his time off work, Mr Xu's colleague spotted him at an airport in Hainan.

In August 2019, Mr Xu's manager called him to ask where he was during his medical leave. In the conversation's recording, Mr Xu was heard to say he remained at home in Beijing.

Two days later, Mr Xu was dismissed from his job due to his dishonesty and fraud.

At first, a labour tribunal ruled that the high-tech company should compensate Mr Xu more than 600,000 yuan for flouting labour laws.

In response, the employer filed an appeal at the Chaoyang District Court, which quashed the previous ruling.

Mr Xu then submitted an appeal at the Third Intermediate People's Court, saying he had not cheated his former employer because he was the owner of a flat in Hainan, and hence went there to recover from his illness.

But the court pointed out Mr Xu had disregarded medical advice to rest and had travelled.

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This article was first published in The Straits Times. Permission required for reproduction.