What Are Layoff Notices?

Economic layoffs refer to situations in which an employer dismisses some workers at one time due to economic reasons such as poor management. Economic layoffs are still unilateral termination of employment contracts by employers. ^[1]

Economic layoffs

Economic layoffs refer to employers firing some workers at one time as a means of improving production and operation conditions. The purpose is to protect their competitiveness and viability in a market economy and to overcome temporary difficulties. Article 27 of the Labor Law stipulates that when an employer is on the verge of bankruptcy and undergoing statutory rectification or serious difficulties in production and operation, and it is necessary to reduce staff, it shall explain the situation to the union or all employees 30 days in advance, and listen to the opinions of the union or employees After reporting to the labor administration, you can reduce staff. " This is a new provision in China's labor law, also known as economic layoffs. Since 'economic layoffs' will inevitably affect the lives of employees and increase the social unemployment rate, the labor administrative department shall actively supervise and check whether the layoffs comply with the scope of permitted layoffs as stipulated in this Law, and whether they comply with the legal procedures for layoffs.

First, see if you belong to the scope of layoffs. According to the Labor Law, there are four types of people who are not allowed to lay off employees, including those who suffer from occupational diseases or injuries due to work and have been confirmed to have lost or partially lost their ability to work; those who are sick or injured within the prescribed medical period; female employees during pregnancy, During the period of lactation and lactation; other circumstances stipulated by laws and regulations. If you fall into one of these situations, the unit should not put you on the layoff list.

Second, the company should notify the retrenched employees 30 days in advance. If it does not notify in advance, it will pay an additional month's salary instead of the advance notice period.

Third, you have the right to be hired first by the old unit. If you haven't found a job, or have a job, but are dissatisfied within six months after being laid off. At this time, you find that the old unit (cutting down your unit) is recruiting again, you can apply for a new job, and the unit has the obligation to hire you first. Of course, the labor contract must be re-signed.

Fourth, get economic compensation according to law. The standard for calculating economic compensation should be calculated based on the average wage income of the layoffs in the 12 months. Wage income here includes basic wages, bonuses, allowances, etc., rather than simply referring to basic wages. If the average wage income of the previous 12 months is lower than the minimum wage of employees in this city, it shall be calculated according to the minimum wage standard of employees in this city. The period of compensation is based on the number of years the employee has worked in the unit. Every one year, there is an economic compensation for one month's wages. Calculated as one year after 6 months and less than one year. Issues that should be paid attention to in the process of layoffs