A former employee at Chinese Internet search engine Baidu.com (BIDU) tells local media that Baidu lost its labor arbitration case in Beijing.

The unnamed employee worked at Baidu's Product Promotion Department and was dismissed by Baidu on May 12 without prior notice. Believing that Baidu violated the Labor Law of China, the employee says he submitted an arbitration application to the Beijing Municipal Labor Bureau in early June.

Baidu has agreed to have the employee back work at Baidu until his labor contract expires in December 2007. In addition, Baidu will make up for the staff's salary for the period since he was told to leave and pay an additional 25% of his salary as compensation.

According to local media, other employees from Baidu's Enterprise Software Department who were dismissed in July are also preparing similar cases against Baidu.