Analysis Of Cases Of Layoffs In Enterprises

Cases of layoffs in Enterprises

Case replay

Tian Mou is a C enterprise worker who produces small appliances. In October 2007, he signed a labor contract with the enterprise for 10 years.

In March 2008, the company's products were unsalable and unable to repay the loan. It was approved by the court and relevant departments to be in the "legal rectification period on the verge of bankruptcy".

The company decided to reduce the number of staff at the same time, and fulfill the statutory procedures at the same time of 75.

Tian and other 9 people belong to the list, but Tian and others believe that there is no legal reason for layoffs. Besides, they have always performed well and enterprises have no right to terminate their labor contracts.

Tian and other 9 people refused to accept the decision of layoffs, and applied for arbitration to the local labor dispute arbitration committee, demanding the resumption of labor relations with the company.

Can Tian's 9 employees be supported by arbitration?

[legal links]

"Labor contract law" forty-first provides, one of the following circumstances, one of the following cases, one needs to tailor more than twenty persons or to cut less than twenty persons or more than twenty or more than twenty persons or more than ten percent of the total employees of the labor administrative department of the labor administrative department report to labor administration departments thirty days in advance thirty days in advance to the labor administrative department report to labor unions or employees...

[interpretation]

The focus of the dispute is: what are economic redundancies? What are the legal reasons for economic layoffs?

To put it simply, economic layoffs refer to the dismissal of multiple workers due to economic reasons such as poor management.

Economic layoffs belong to a situation where the employer terminates the labor contract.

In the market economy, the employing units directly face the competition of the market. In order to better adapt to the market demand and maintain the vitality of the enterprises, the employing units must form a system of "able to go up and down" and "can go in and out" in the employing area.

Allowing enterprises to make economic layoffs is to enhance the competitiveness of enterprises and improve the business environment of enterprises. The ultimate goal is to better develop the social economy and promote social employment.

The fortieth clause of the labor contract law stipulates the conditions for layoffs. As long as one of the following conditions is met, the employing unit can make economic layoffs: first, it is to be reorganized according to the provisions of the enterprise bankruptcy law; two, there are serious difficulties in production and operation; three, the pfer of enterprises, major technological innovation or adjustment of the way of operation, and the need to reduce personnel after the change of the labor contract; four, other major changes in the objective economic situation based on the conclusion of the labor contract, resulting in the failure of the labor contract to be fulfilled.

It can be seen that the reasons for economic layoffs are mainly economic reasons, rather than workers' personal reasons, which is not necessarily related to the performance of workers.

In this case, enterprises have reached the statutory bankruptcy margin to carry out reorganization, which is in line with the conditions for economic layoffs.

Therefore, the request of Tian and others can not be supported by arbitration.