What is an Employee Placement Program?

When an enterprise goes bankrupt, employees must face a re-employment problem. Therefore, in the process of corporate bankruptcy, whether the bankruptcy can be resolved smoothly and the social contradictions can be resolved smoothly. It is a major problem to be dealt with in the process of corporate bankruptcy, especially state-owned enterprise bankruptcy. It is a manifestation of a government's social responsibility.

Staff resettlement costs

Right!

When an enterprise goes bankrupt, employees must face a re-employment problem. Therefore, in the process of corporate bankruptcy, whether the bankruptcy can be resolved smoothly and the social contradictions can be resolved smoothly. It is a major problem to be dealt with in the process of corporate bankruptcy, especially state-owned enterprise bankruptcy. It is a manifestation of a government's social responsibility.

Chinese name

Staff resettlement costs

Foreign name

Employee placement fee

The employee resettlement fee will inevitably be required for employee resettlement, and if the resettlement fee is paid by the enterprise, the number of creditors' settlement based on the bankruptcy property will inevitably decrease. Therefore, the bankruptcy creditor of the enterprise and the employee will inevitably have conflicts. Be normative.

The bankruptcy creditors of a bankrupt enterprise are settled in the following order according to the provisions of the Bankruptcy Law and the Civil Procedure Law of China. The first is the wages and labor insurance costs of the employees of the enterprise, which are actually the taxes owed by the enterprise, and finally other If the claims in the same order are insufficient to pay off, they shall be paid off in proportion. According to these regulations, the resettlement fees of employees of the enterprise did not participate in the distribution of bankruptcy property as the first order of creditors. The reason was determined by the nature of the resettlement fees of employees.

The resettlement fee for employees is different from the compensation received by employees for dissolving labor relations with the enterprise. The compensation for employees who terminate labor relations is based on direct provisions of the labor law and applies to all enterprises; It is the relevant administrative regulations of the State Council on bankruptcy and merger of state-owned enterprises, as well as the regulations of individual local governments. It has a strong policy nature, and it is only applicable to employees in the state-owned enterprise bankruptcy reform system. The compensation for employees' termination of labor relations is based on the "Provisions on Several Issues in the Trial of Bankruptcy Cases of Enterprises". The right to claim compensation can be referred to the provisions of the Bankruptcy Law as the first settlement of bankruptcy claims to participate in the bankruptcy distribution of enterprises. This provision is not applicable to employee resettlement fees. Finally, the biggest difference is that the compensation of employees is borne by the enterprise, which is a statutory responsibility in the labor law, which corresponds to the right to claim compensation for employees; while part of the resettlement costs of employees is reflected in the burden of the enterprise, it is basically The government should bear the social responsibility for the employment resettlement of bankrupt enterprises. Employees only have the right to claim resettlement fees when they voluntarily choose to issue resettlement fees at one time.

According to the provisions of Guofa (1997) No. 10, apart from the bankruptcy of bankrupt enterprises that are included in the state plan adjustment, the employee resettlement costs of bankrupt enterprises are not borne by the enterprise, but can only be resolved through channels such as local government subsidies, civil relief and social security. Therefore, it is not borne by bankrupt enterprises like compensation for employees' termination of labor relations and other claims; moreover, the resettlement fees for employees are not all paid to employees at one time as resettlement fees, but are used for transfer training, employment introduction, Grant basic living expenses and other employment resettlement purposes. Therefore, under normal circumstances, the employee's resettlement fee for a bankrupt enterprise is not paid from the sale of the bankruptcy property of the enterprise, so it will not conflict with the interests of the bankruptcy creditor of the enterprise.

However, in accordance with the "State Council's Notice on the Trial Implementation of State-owned Enterprise Bankruptcy in Several Cities", namely, Guofa (1994) No. 59 and Guofa (1997) No. 10, state-owned enterprises incorporated in these pilot cities into bankruptcy plans went bankrupt At that time, the employee's resettlement expenses shall be borne by the enterprise. According to regulations, after transferring its land use right, a bankrupt enterprise should give priority to the company's employee resettlement fees from the transfer income. Even if the land use right has been mortgaged, it should also pay the employee resettlement fee first before repayment. Creditor's claims. If the enterprise's income from the transfer of land use rights is insufficient to pay the resettlement costs, it shall be paid from the income from the transfer of other property of the enterprise, and shall be paid from the income from the transfer of the property from which no mortgage has been set up, and the insufficient property shall be paid from the property that has been mortgaged. Payment from transfer proceeds. In the end, what is still insufficient is borne by the government at the same level according to the affiliation of the enterprise. Therefore, for the bankruptcy of the state-owned enterprises included in the bankruptcy plan, the staff resettlement fee not only takes precedence over the bankruptcy claims stipulated in the bankruptcy law, but also takes precedence over the secured claims, which is closer to the bankruptcy costs in order.

Judging from the above regulations, the resettlement expenses of these enterprises are basically borne by the enterprises themselves. Therefore, when the bankruptcy assets of the enterprises are limited, the interests of the bankruptcy creditors of the enterprises will inevitably be greatly reduced by the payment of the resettlement fees, and even Get no settlement. In practice, due to local protection considerations, some places will deliberately expand the standard for resettlement fees, and even treat state-owned enterprises that do not apply these special regulations as companies incorporated in the bankruptcy plan, thereby harming the legitimate interests of creditors and The purpose of bankruptcy and evasion. To this end, the state has issued regulations to control the situation on many occasions. It should be said that the essence of these regulations is to shift the social responsibility that should have been borne by the government to the enterprises. This is reasonable under the "business-run society" planned economy system, but in the increasingly developed market economy system, With the improvement of the social security system, the resettlement of employees in enterprises will eventually be transferred to the state society.