Provisions On Compensation For Layoffs

Labor statutory economic compensation provisions for individual layoffs in Enterprises

1, the fortieth clause (three) of the labor contract law of the People's Republic of China stipulates: "the objective situation based on the conclusion of the labor contract has undergone major changes, resulting in the failure of the labor contract to be fulfilled. After the employer and the laborer have negotiated, the contents of the labor contract have not been agreed."

2, the forty-sixth provision of the labor contract law of the People's Republic of China stipulates: "the employing unit shall pay the economic compensation to the laborer if the employer terminates the labor contract in accordance with the fortieth provision of this law."

3, the forty-seventh provision of the labor contract law of the People's Republic of China stipulates: "economic compensation shall be paid to the laborers according to the number of years worked by the laborers in this unit and the wages paid for one month per year.

For more than six months with less than one year, the financial compensation for half a month's wages will be paid to the laborers for a period of one year or less than six months.

The monthly salary of laborers is higher than that of the Municipal People's Government of the municipality directly under the central government or the municipal district where the unit is located, and the monthly average wage of the workers in the region is three times higher than that of the local people's government. The standard of paying the economic compensation to the workers is three times the average monthly wage of the workers, and the maximum period of payment for the economic compensation is not more than twelve years.

The monthly wage mentioned in this article refers to the average wage of a worker within twelve months before the termination or termination of the labor contract.

Compensation related knowledge:

Layoffs are the abbreviation of economic layoffs, which is the reason for the termination of labor contracts because of employers' reasons.

It refers to the behavior of a centralized employee to dismiss employees in accordance with the law.

Enterprises carrying out economic reduction of personnel can reduce redundant personnel arising from changes in production and operation conditions.

The twenty-seventh provision of the labor law of the People's Republic of China stipulates: "when the employing unit is on the verge of bankruptcy, during the period of statutory rectification or serious difficulties in production and operation, it is necessary to lay down personnel for thirty days. It should state the situation to the trade union or all the staff members in advance, and listen to the opinions of the trade unions or workers. After the report to the labor administrative department, the staff can be reduced.

If the employing units reduce personnel according to the provisions of this article, those who employ them within six months shall give priority to those who have been laid off.

The "report" here refers only to the meaning of "no approval".

"Priority" refers to the priority of employment under the same conditions.

There are two statutory conditions for employing units to make economic layoffs.

First, due to serious difficulties in production and operation, and on the verge of bankruptcy, the people's court declared that it was in the period of statutory reorganization.

The "statutory rectification period" refers to a rebuilt bankruptcy system in which enterprises adjust their debts in accordance with the bankruptcy proceedings of the People's Republic of China bankruptcy law and the civil procedure law in order to restore their debts.

If an enterprise is not well managed, it is difficult to repay its debts due to maturity, and it may be applied for bankruptcy by creditors.

If an enterprise is only experiencing temporary difficulties and can recover its solvency after a period of operation, the enterprise can reach a settlement agreement with the creditor and declare it into the rectification period by the court.

In China, the higher level departments responsible for bankruptcy application are put forward and responsible for the reorganization.

If the enterprise is still unable to pay its debts after the end of the rectification period, the court will declare the enterprise bankrupt.

"Entering the period of statutory rectification" shows that it is very difficult for enterprises to operate.