HUAWEI Misread The Labor Contract Law.

HUAWEI is worried that signing an unfixed term contract with employees will subvert the principle of survival of the fittest, thereby weakening the competitiveness of enterprises.

At the macro level, the state needs the labor force management system that is superior to the fittest. At the same time, no fixed term labor contract is not an iron rice bowl. There are also statutory conditions that can be lifted. The labor contract law provides a fair and reasonable stipulation for the labor contract with no fixed term, and it is beneficial to both the enterprise and the workers, without evading it.

Finally, the author objected to the practice of laying off or changing contracts before the labor contract law came into effect. It was suggested that enterprises should focus on improving the management level and adjusting the internal rules and regulations in response to the labor contract law.

Text: the labor contract law, which repositioned the labor relations in China, will be implemented in January 1st next year. Many enterprises began to adjust the human resource management system years ago. Recently, the adjustment of HUAWEI's company has attracted a lot of social attention because of its involvement in nearly 10000 employees.

In fact, during the first reading of the law of the labor contract law, I judged that many enterprises might adjust the human resource management system before the end of this year, that is, before the labor contract law comes into effect.

Because the labor contract law strengthens the protection of labourers, from another aspect, it means that it is more difficult for enterprises to reduce employees. As an enterprise, to maintain competitiveness, it is necessary to adjust the human resource management system before the entry into force of the law.

However, the author believes that the prescription of HUAWEI's human resources system reform is not very reasonable, and its first step of reform seems to be misreading the labor contract law.

From the relevant reports, HUAWEI's adjustment can be costly. All employees who have worked in HUAWEI for more than 8 years (i.e. before 1999) will probably resign and then sign a contract with the company again.

Although HUAWEI may consider the adjustment of new and old employees' treatment and so on, it is obviously the main purpose of the labor contract law to avoid signing a non fixed term labor contract for employees who have worked for more than 10 years.

For this adjustment, HUAWEI and the employees involved in this adjustment have paid a certain price.

As the price paid by HUAWEI, the company needs a one-time compensation of not less than 9 months for every 10000 employees involved in the adjustment. Meanwhile, the salary of the new labor contract has increased. If the employees involved do have so much news coverage, the author roughly estimates that HUAWEI will pay hundreds of millions of yuan or even more than a billion yuan for the human resources adjustment.

At the same time, HUAWEI's current practice is not just once and for all. There will be employees who are close to the threshold of 10 years or two renewals without any fixed term contract. Moreover, after adjusting the employees 10 years or two times, they will still reach the standard of unfixed term contracts.

Therefore, at such a high cost, the problem of no fixed term contract is still unsolved.

Although the employees got the compensation, they lost the opportunity to sign an unfixed term labor contract with HUAWEI. The unfixed term contract, which was about to arrive, was gone. The author also saw that HUAWEI employees were dissatisfied with the adjustment on the Internet.

According to the author's understanding, many enterprises are also prepared to take advantage of the "labor contract law" which has not yet entered into force to make a big difference in time and reduce staff.

Whether it is HUAWEI's carrot adjustment or the bar adjustment of many enterprises, it has some deviation from the original intention of the legislators of the labor contract law.

The adjustment of HUAWEI is mainly due to a worry about the fourteenth article of the labor contract law: if it can not be cut down with its employees without a fixed term contract, it will subvert the principle of survival of the fittest and weaken the competitiveness of enterprises.

The author believes that this worry is unnecessary.

First of all, from a macro perspective, the state will not be willing to undermine the competitiveness of large enterprises like HUAWEI.

Although China's development has been developing rapidly since the reform and opening up, the gap between our population and western developed countries is still relatively large. Therefore, the state needs to enhance the competitiveness of the leading enterprises such as HUAWEI to drive the development of the whole country, and an important part of the competitiveness of enterprises is the internal competition mechanism of "survival of the fittest".

In this regard, even if the labor contract law improves the threshold for employees to cut their employees, HUAWEI and even the whole society need the mechanism of "survival of the fittest".

Under such a macro background, the author thinks that large enterprises like HUAWEI should give priority to the adjustment of their internal rules and regulations and human resources management system according to the labor contract law to achieve the goal of survival of the fittest. This is the focus of our work, rather than the priority avoidance of the law, so that employees who are about to reach an unfixed term labor contract will have to sign their own fixed term labor contracts at a high cost, and this adjustment has not fundamentally solved the problem, but it has only been delayed for some time.

Secondly, the fear of unfixed term labor contracts is not the result of careful study of the labor contract law. The so-called "unfixed term labor contract" is only a contract with no terminating period, which is essentially different from the iron rice bowl under the planned economy.

In fact, the labor contract law also provides for the statutory conditions for the rescission of the contract, and such contracts are not inevitable.

At the same time, the cost of a single contract is not high.

By contrast, HUAWEI's massive adjustment appears to be too costly.

Finally, for the fairness and justice of the whole society, the stipulate of the term of the labor contract in the original labor law system is not very reasonable for the workers.

The short term trend of labor contracts under the original system is obvious, which has already affected the sense of employment stability and the sense of belonging to the employees, and is also unfavorable to the long-term development of enterprises and the harmony and stability of the society.

The fourteenth clause of the labor contract law stipulates that the three cases of signing an unfixed term labor contract are very reasonable: the worker has worked continuously for ten years in the employing unit, has concluded two fixed term labor contracts, renewed the labor contract, and the employer and the laborers have reached a consensus through consultation.

The author believes that if the above conditions are satisfied, workers should enjoy long-term and stable working conditions.

The provisions of this system are ultimately beneficial to enterprises. All enterprises, including HUAWEI, should welcome this attitude rather than fear and try to avoid it.

The above discussion is also applicable to enterprises that want to lay off large numbers of employees before the entry into force of the labor contract law. It seems that now the layoff procedures are simple and the cost is low.

The labor contract law is a fair law. In addition to safeguarding the legitimate rights and interests of workers, it also takes into account the interests of enterprises.

Therefore, we also advise a company that is now planning to lay off staff: if the enterprises are laying off employees now, it can only show that business managers are not confident in the future. Although they are only a small number of employees, the enterprises lose their hearts and morale and development momentum.

Finally, let's talk about what the enterprises should do before the labor contract law comes into effect.

The labor contract law puts forward higher requirements for the management level of the employing units. In the labor dispute disputes between enterprises and employees, the internal rules and regulations of enterprises play a very important role.

It is suggested that enterprises adjust their internal rules and regulations according to the labor contract law, so as to improve the management level and achieve the legitimate and effective effect of managing employees.