Email(FOR EMPLOYERS)
marketing@talent-spot.com.cn
Consult
What are you looking for?
In human resource management, contract termination is an inevitable topic. Whenever the labor contract expires or both parties decide not to continue the labor relationship, the calculation of economic compensation becomes a key link that HR people need to deal with carefully.
Why do some employees get "n" times the monthly salary compensation when the contract is terminated, while others get "2N" times the compensation?
This paper will discuss this topic in depth to help HR people better understand and apply relevant laws and regulations and ensure enterprises to operate in compliance.
1. What is the termination of the contract?
Termination of the contract refers to the behavior of both parties to the labor contract to terminate the labor relationship ahead of time or due to legal or agreed conditions. In the field of labor law, there is a strict distinction between the concepts of contract termination, dismissal and layoffs, and their handling methods and legal responsibilities are also different.
2. Common situations of contract termination
Contract expires without renewal: the term of the labor contract agreed by both parties expires and no renewal agreement is reached.
Legal retirement age: employees reach the legal retirement age and begin to receive pensions.
Subject loss: cancellation, bankruptcy, liquidation of the company or accidental death of employees.
Other statutory circumstances: such as consensus reached by both parties, serious violation of rules and regulations by employees, etc.
1. Economic compensation for "n" times monthly salary
Contract will not be renewed when it expires (due to company reasons): When the company decides not to renew the labor contract when it expires, it shall pay economic compensation to the employee according to the provisions of the Labor Contract Law, with the standard being the number of years the employee has worked in the company 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. The "n" here represents the working years of employees in this unit.
Loss of main body (company reason): If the company can't continue to perform the contract due to cancellation, bankruptcy, liquidation and other reasons, it is also necessary to pay employees "n" times the monthly salary as economic compensation.
2. "2N" times the monthly salary compensation
Illegal termination of the labor contract: according to Article 14 of the Labor Contract Law, if a worker proposes or agrees to renew or conclude a labor contract after two consecutive fixed-term labor contracts are concluded, and the worker is not at fault or incompetent, an open-ended labor contract shall be concluded in addition to the employee's proposal to conclude a fixed-term labor contract.
If the company refuses to renew the labor contract for the second time or more after it expires without justifiable reasons, it will constitute illegal termination of the labor contract. At this time, the company needs to pay employees compensation of "2N" times the monthly salary as punitive compensation for the illegal behavior.
1. Special circumstances in which employees do not renew their contracts
Although under normal circumstances, employees do not need to pay economic compensation when they voluntarily propose not to renew their labor contracts, there are exceptions. If the company fails to maintain or improve the conditions agreed in the original labor contract (such as reducing salary, changing work place, post, etc.), resulting in employees' reluctance to renew the contract, the company still needs to pay economic compensation according to the standard of "n" times the monthly salary.
2. did not meet the conditions for receiving pension termination.
For employees who have not reached the statutory retirement age and have not met the conditions for receiving pension, if the company decides to terminate the labor contract, some courts may support the request for paying economic compensation. This provision embodies the oblique protection principle of labor law for vulnerable groups. However, it should be noted that the specific judgment results may be different due to factors such as regions and cases.
1. Be familiar with laws and regulations to ensure compliance operation.
As an HR, I should be familiar with the provisions of the Labor Contract Law and relevant laws and regulations, so as to ensure that the legal procedures are followed during the termination of the contract and the economic compensation or compensation is accurately calculated. At the same time, establish and improve the internal management system, standardize the contract management process, and reduce the legal risks caused by improper operation.
2. Strengthen communication and consultation to resolve potential contradictions.
Before the termination of the contract, HR should actively communicate and negotiate with employees to understand the true wishes and demands of both parties. Through effective communication, we can resolve potential contradictions, reach a consensus and avoid unnecessary legal disputes. For situations that may involve economic compensation or compensation, budget and preparation should be made in advance to ensure that funds are in place.
3. Improve the turnover management process and protect the interests of enterprises.
In the process of resignation management, HR should ensure that employees go through resignation procedures in accordance with company regulations, such as handing over work and returning company property. At the same time, pay attention to the follow-up trends of resigned employees to prevent risks such as trade secret disclosure and unfair competition caused by resignation. Employees who leave their jobs in bad faith or violate company regulations should be investigated for legal responsibility according to law.
4. Improve employee satisfaction and reduce turnover rate.
Fundamentally speaking, reducing the turnover rate and reducing the occurrence of contract termination events is the key to reducing economic compensation and compensation expenses. HR should pay attention to employees' needs and satisfaction, and enhance employees' sense of belonging and loyalty by providing competitive salary and benefits, good working environment and career development opportunities. At the same time, strengthen the construction of corporate culture, create a positive working atmosphere, and stimulate the enthusiasm and creativity of employees.
