Should Large-Scale Layoffs Be On The Verge Of Bankruptcy?

In response to recent actions by some enterprises to launch layoffs before the implementation of the labor contract law, the Guangzhou municipal government issued an urgent notice to stipulate that if the employer is not on the verge of bankruptcy or serious difficulties in production and operation, it is not allowed to carry out large-scale layoffs. Once a layoff is made or 14 to 31 days (31 days) this month, a total of 20 or more redundancies will be reduced to a large scale, which must be reported to the labour department in advance.

A labor contract law intended to protect the rights and interests of workers has triggered a wave of nationwide layoffs. This seems to have been unforeseen by legislators, or at least underestimated.

In fact, it is not just the labor contract law that has encountered such a legislative embarrassment. There are many such things.

For example, the state compensation law, of course, is intended to correct mistakes and give economic compensation to those who have wronged. The result is that some places are unwilling to rectify wrongful and false cases.

When it comes to losing money or being accountable, it is not as easy as sending a notice of redress.

Because the Golden Week tourism was too concentrated, the May Day was cancelled, making the Spring Festival and eleven more crowded. It is estimated that next year will be confirmed.

This is a very interesting legislative phenomenon, which can be further discussed in the future. This article only refers to the phenomenon of layoffs.

Guangzhou urgently stopped the layoffs at the end of the year. The government's motive is to patch up the loopholes in the labor contract law and make good use of it.

However, the reason for halting is lost in haste, or contrary to the basic spirit of enterprise management.

It does not seem to be appropriate for a company to have 20 or 10% standards. It is extremely inappropriate for large-scale layoffs to be on the verge of bankruptcy or serious difficulties in production and operation.

If an enterprise is laid off, it will probably be too late to wait for bankruptcy or production and operation.

Just like a ship, it is not until the sinking of the ship that the ship is allowed to drown.

Therefore, any brain operator is not going to be bankrupt until he considers the layoffs of enterprises, but according to the actual profits of enterprises and the needs of future development.

Some large foreign companies sometimes cut off the whole department, sometimes tens of thousands of people.

Recently, Citibank has been cutting large numbers of people worldwide.

European enterprises are not the same as the US in terms of employment and layoffs. This is a headache for some Chinese people who say "international standards".

European enterprises are very difficult because of layoffs, and businesses are too afraid to recruit people.

In the US, layoffs are relatively simple, so they dare to employ large numbers of people.

I remember an American told me a story, probably in 30s of last century, the Great Depression of the United States, a large automobile factory, once tens of thousands of people invited to the stadium to watch the rugby game.

After the announcement, the player who watched the ball did not need to go to work and dismissed from tomorrow.

Of course, there are still some formalities to be done.

I told him that we could not do it here.

Europe is reflecting on its employment rules, and they find that US employment regulations can make enterprises more dynamic and competitive.

Fundamentally speaking, the flexibility of enterprise employment system is conducive to the survival and development of enterprises.

The employment system was rigid, the enterprises collapsed, and the workers lost a lot of jobs, which was ultimately the responsibility of the government.

The key to the problem lies not in the circumstances under which the enterprises are to be laid off, but on whether the society has any guarantee for the unemployed.

With a sound social security system, people who have been laid off can live without worry and learn and reemployment.

If the government does not want to lose a lot of competitiveness after the company fails, it is best not to deprive enterprises of their autonomy.

Otherwise, there may be no laid-off workers in a short period of time. As time goes on, when a company loses its competitiveness, the government will have more trouble.