A factory in Foshan of Guangdong Province has sparked controversy among locals by banning workers from using toilets during working time.
According to the rule, which came into effect this week, those who use toilets during work time will be fined 5 yuan (US$0.63) each time.
The rule has angered its employees, and many local legal experts said the company had violated labour laws.
But the company argued the new regulation prevents its staff from being lazy at work.
The local labour department has launched an investigation.