The "Breach Of Contract" Stipulated That The "Exceeding Standard" Clause Is Invalid.

At present, it is common for some companies to "dig" senior executives.

Then, in the labor contract, the enterprise and the senior executive agree that when the contract is terminated with the senior manager, will the party pay the penalty of "sky high price" exceeding the standard stipulated in the labor contract law? Will the agreement have legal effect? In the seminar on the three cases of labor disputes in Beijing, Tianjin and Hebei, which was sponsored by the Beijing labor and social security law society, the high penalty clause was issued.

Become the focus of attention of all parties.

Wang entered a media company on New Year's day in 2008, and the two sides signed a labor contract with a term of 3 years.

In the labor contract, the two sides agreed to Wang's position as executive vice president, with an annual salary of 4 million yuan after tax.

In the fourth paragraph of the fourth article of the supplementary labor contract, the two parties stipulate that, "Party A shall pay the labor contract in advance during the contract period. The Party A shall pay the liquidated damages to the laborers. The standard of the liquidated damages shall be the sum of the annual salary after the tax for three years as stipulated in this agreement, and pay the economic compensation according to the provisions of the law of labor and the law of labor contract."

Because Wang's performance was not in line with the expectations of the media company, in April 2009, the media company issued a notice of termination of the labor contract to Wang, demanding the termination of its labor relations.

Subsequently, Wang Xiang

The Arbitration Commission submitted an arbitration application, which required 33536.25 yuan of economic compensation and 12 million yuan of liquidated damages for the dissolution of the labor contract by the media company.

After the labor arbitration, first instance and second instance procedures, the court finally decided that the media company should pay 12 million yuan to Wang.

At the same time, the media company should pay the economic compensation for the termination of the labor contract to 16767 yuan according to the forty-seventh provision of the labor contract law.

With regard to high liquidated damages, there is a view that "

The provisions of forty-seventh, forty-eighth and 87 are mandatory legal norms, and the agreement between the employer and the employee on the compensation or compensation for the dissolution of the labor contract shall be consistent with the standard of legal compensation for the termination or termination of the labor relationship, otherwise it should be deemed invalid.

However, Dai Aijun, an arbitrator of the Beijing labor and personnel dispute arbitration committee, said that the labor law and the labor contract law did not explicitly prohibit the employer and the laborer from stipulate that the employer should undertake the breach of contract beyond the scope of the law. Nor did it explicitly prohibit the Employer from giving higher compensation to the workers.

Then, whether the labor dispute arbitration institution or the people's court has the right to adjust the amount of the high liquidated damages (compensation or compensation)? Shen Jianfeng, an associate professor of China Institute of Industrial Relations, believes that although the high default penalty is the result of the autonomy of the two sides, according to the labor contract law, the parties concerned may request the people's court or the arbitration agency to reduce it appropriately if the penalty is too high.

However, the premise is that the company has to prove that the loss of workers is not that big, and this is not easy.