+86-136 5173 1255 EN
Shanghai Lethic Talent Services Co., Ltd.
Get Your Customized Business Employment Services & Solutions

Provisions on N, N+1, 2N and 2N+1 in the Labor Law

Table of Content [Hide]

    In daily life, we often hear people discuss N, N+1, 2N, 2N+1.

    But do you know the concept of each word? Is it "N+1" or "2N"? How to determine the resignation compensation? 

     

    Today, in this article, we will tell you about the provisions of N, N+1, 2N and 2N+1 in the Labor Law. This article is full of dry goods, so hurry to collect it ~


    01

    What are n, N+1, 2N, 2N+1?

    In the labor law, n, N+1, 2N and 2N+1 are different ways to calculate the economic compensation for resignation. These symbols represent different compensation standards and calculation methods.


    1. N represents the number of years the laborer has worked in the employing unit.

     

    According to Article 47 of the Labor Law:

    Economic compensation is paid to the employee according to the number of years he has worked in this unit and the standard of paying one month's salary for each full year. For more than six months but less than one year, it shall be counted as one year; If it is less than six months, economic compensation of half a month's salary shall be paid to the workers.

    For example, if a worker has worked in a company for five years, then N=5, and the economic compensation is five months' salary.


    2. The "+1" in N+1 means to pay an extra month's salary as payment in lieu of notice.

     

    According to Article 40 of the Labor Contract Law:

    If the employer fails to notify the employee in writing 30 days in advance when dissolving the labor contract, it shall pay an extra month's salary.

    For example, if the employee has worked for five years and the employer has not notified him in advance, the economic compensation is 5+1=6 months' salary. (except in special circumstances)

     

    3. 2N represents double economic compensation.

     

    According to Article 87 of the Labor Contract Law:

    If the employing unit dissolves or terminates the labor contract in violation of the provisions of this Law, it shall pay compensation to the laborer at twice the economic compensation standard stipulated in Article 47 of this Law.

    For example, if the employee has worked for 5 years and the employer terminates the contract illegally, the compensation will be 2×5=10 months' salary.

     

    4. 2N+1

     

    It should be noted that there are only three kinds of statutory resignation compensation, namely "n", "n+1" and "2n", and there is no such thing as "n+3" and "2n+1" ...

    The specific application of these calculation methods depends on the reasons and procedures for the termination of the labor contract, and continue to look down with the footsteps of Xiaobian.

     

    02

    The employer needs to pay N.

    In the "Labor Law", it is stipulated that the situations in which the employer needs to pay N mainly include the following:

     

    1. The employer proposes to terminate the labor contract with the employee, and terminates the labor contract through consultation with the employee;

    Legal basis: Articles 46 and 36 of the Labor Contract Law.

     

    2. The employee is sick or injured non-work-related, and cannot engage in the original work after the prescribed medical treatment period expires, nor can he engage in other work arranged by the employer, and the employer terminates the labor contract after notifying the employee in writing 30 days in advance;  

    Legal basis: Articles 46 and 40 of the Labor Contract Law.

     

    3. The employee is not competent for the job, and is still incompetent after training or job adjustment, and the employer terminates the labor contract after notifying the employee in writing 30 days in advance;  

    Legal basis: Articles 46 and 40 of the Labor Contract Law.

     

    4. The objective conditions on which the labor contract was concluded changed greatly, which made it impossible to perform the labor contract. After consultation between the employer and the employee, the employer failed to reach an agreement on changing the contents of the labor contract, and the employer terminated the labor contract after notifying the employee in writing 30 days in advance;  

    Legal basis: Articles 46 and 40 of the Labor Contract Law. 

     

    5, the employer in accordance with the provisions of the enterprise bankruptcy law, restructuring, according to the law to reduce staff;

    Legal basis: Articles 46 and 41 of the Labor Contract Law. 

     

    6, the employer has serious difficulties in production and operation, according to the law to reduce personnel;  

    Legal basis: Articles 46 and 41 of the Labor Contract Law. 

     

    7, enterprise production, major technological innovation or operation mode adjustment, after the change of the labor contract, it is still necessary to lay off employees, and the employer lays off employees according to legal procedures;  

    Legal basis: Articles 46 and 41 of the Labor Contract Law. 

     

    8. Other major changes have taken place in the objective economic situation on which the labor contract was concluded, resulting in the inability to perform the labor contract, and the employing unit has laid off employees according to legal procedures;

    Legal basis: Articles 46 and 41 of the Labor Contract Law.

     

    9. When the labor contract expires, the employer terminates the fixed-term labor contract;  

    Legal basis: Articles 46 and 44 of the Labor Contract Law.

     

    10. The labor contract is terminated because the employer is declared bankrupt according to law;  

    Legal basis: Articles 46 and 44 of the Labor Contract Law.

     

    11. The labor contract is terminated because the business license of the employing unit is revoked;  

    Legal basis: Articles 46 and 44 of the Labor Contract Law.

     

    12. The labor contract is terminated because the employer is ordered to close down;  

    Legal basis: Articles 46 and 44 of the Labor Contract Law. 

     

    13. The labor contract is terminated due to the cancellation of the employer;  

    Articles 46 and 44 of the Labor Contract Law

     

    14. The labor contract is terminated due to the decision of the employer to dissolve in advance;

    Legal basis: Articles 46 and 44 of the Labor Contract Law.

     

    15. A labor contract whose term is to complete a certain task is terminated due to the completion of the task.

    Legal basis: Article 22 of the Regulations for the Implementation of the Labor Contract Law.

     

    03

    The employer needs to pay N+1.

    The Labor Law stipulates that when the labor relationship is dissolved or terminated, the employer shall pay the laborer one month's salary in addition to the economic compensation for the dissolution or termination of the labor contract.

     

    It mainly includes three situations:

    1. The employee is sick or injured non-work-related, and cannot engage in the original work after the prescribed medical treatment period expires, nor can he engage in other work arranged by the employer, and the employer fails to notify the employee in writing to terminate the labor contract 30 days in advance;

    Legal basis: Article 40 of the Labor Contract Law

     

    2. The employee is not competent for the job, and is still incompetent after training or job adjustment, and the employer fails to notify the employee in writing to terminate the labor contract 30 days in advance;

    Legal basis: Article 40 of the Labor Contract Law

     

    3. The objective conditions on which the labor contract was concluded changed greatly, which made it impossible to perform the labor contract. After consultation between the employer and the employee, the employer failed to reach an agreement on changing the contents of the labor contract, and the employer failed to notify the employee in writing to terminate the labor contract 30 days in advance.

    Legal basis: Article 40 of the Labor Contract Law

     

    04

    The employer needs to pay 2N.

     

    According to the provisions of the labor contract law, only when the employer illegally terminates the labor contract can he get double economic compensation. 

    What needs to be made clear is that economic compensation is the compensation given to workers by the employer when the labor contract is dissolved according to law, and it has the nature of legal compensation; The compensation is punitive compensation for the employer's illegal termination of the labor contract.

    Mainly includes the following situations:

     

    1. The labor contract cannot be dissolved by law, but the employer has dissolved it.

     

    The employer has one of the following illegal situations in the process of employment, and the employee proposes to terminate the labor contract:

    · Failing to provide labor protection or working conditions as agreed in the labor contract.

    · Failing to pay labor remuneration in full and on time.

    · Failing to pay social insurance premiums for workers according to law.

    · The rules and regulations of the employing unit violate the provisions of laws and regulations and damage the rights and interests of workers.

    · The employer's fault makes the labor contract invalid.

    Legal basis: Article 38 of the Labor Contract Law

     

    2. The procedure for dissolving the labor contract is illegal.

     

    Failing to inform the trade union, failing to inform the employee of the reasons for terminating the labor contract, and listening to the employee's complaints and excuses. If you don't listen to the opinions of the trade union and clearly inform the workers, it is illegal to terminate the procedure.

     

    Failing to perform the corresponding procedures, and directly terminating. If the employee is incompetent, the employer must first train or adjust the post, and the labor contract can only be terminated if the employee is still incompetent; If you dismiss directly without training or post adjustment, it is illegal to dismiss.

    Legal basis: Article 43 of the Labor Contract Law


    05

    Is the base of economic compensation payable or paid?

    For many small partners, I will also be curious. The base of economic compensation is calculated according to the average salary of the workers in the twelve months before the termination or termination of the labor contract (the salary is three times higher than the social average salary).


    Is the salary here payable or paid?

    Article 27 of the Regulations for the Implementation of the Labor Contract Law makes this clear:

    The monthly salary of economic compensation stipulated in Article 47 of the Labor Contract Law shall be calculated according to the employee's due salary, including hourly wage or piece-rate wage and monetary income such as bonuses, allowances and subsidies.

    If the average wage of workers in the 12 months before the termination of the labor contract is lower than the local minimum wage standard, it shall be calculated according to the local minimum wage standard.


    If the laborer has worked for less than 12 months, the average salary shall be calculated according to the actual working months.

    The implementation regulations of the Labor Contract Law stipulate that the salary at the base of economic compensation calculation is "due salary". The two concepts of "deserved wages" and "payable wages" can be understood as the same meaning. "Earned wages" is expressed from the perspective of workers getting wages, and "payable wages" is expressed from the perspective of employers paying wages. "Should be sent" corresponds to "actually sent" and "deserved" corresponds to "actually obtained".

     

    The main difference between workers' monthly wages and take-home wages lies in various deductions and expenses. Therefore, in practice, "payable (deserved) wages" are also called pre-tax wages, and "paid (earned) wages" are also called after-tax wages.

    · Earned wages refer to the sum of all wages payable without deduction of social insurance premium, housing accumulation fund, personal income tax and other deductions;

    · The take-home salary refers to the salary actually paid, that is, the income tax, social security fee, provident fund and other expenses have been deducted.

    As the social insurance premiums, taxes and other deductions withheld by the employer are all components of personal labor income, the employer only undertakes the obligation of withholding and remitting. The tax authorities shall be responsible for the payment of workers' taxes, and the social insurance institutions shall be responsible for the payment of social insurance premiums.

     

    The part deducted by the employer is actually the employee's salary, so when calculating the economic compensation, the salary due before tax and without deduction of social security fees should be taken as the calculation base.

     


    References
    PREV: No information
    We use cookies to offer you a better browsing experience, analyze site traffic and personalize content. By using this site, you agree to our use of cookies. Visit our cookie policy to leamn more.
    Reject Accept