On Economic Compensation And Legal Risks Of Enterprises

If the unit is not compensated, the worker can claim his rights according to law.

When the employer proposes to terminate the labor contract, the economic compensation for laborers includes:

(1) negotiation by the employer.

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(2) termination of the notice or additional payment of wages to terminate the labor contract;

(3) economic layoffs.

The forty-seventh article of the labor contract law stipulates the following specific provisions for compensation:

Economic compensation is paid to laborers according to the number of years worked by the workers in their units 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 annual limit for paying the economic compensation to them is not more than twelve years.

The above mentioned monthly wages refer to

The average wage in the twelve months before the termination or termination of the labor contract.

Therefore, the compensation must also be considered when considering the cost of labor contract.

In addition, according to the regulations, enterprises fail to press the labor contract.

If the laborer gives financial compensation, the labor administrative department shall order the payment within a prescribed time limit.

If the employing unit fails to pay within the prescribed time limit, it shall, in addition to the full amount of economic compensation, be compensated by 50% to 100% of the amount of the economic compensation.

This additional commitment is part of the incremental legal risk.