The short answer is that there are no significant changes. The basics of China's labor laws have not changed. China is still not an employment jurisdiction. And labor laws are still highly localized.
The original measure provided guidelines for calculating legal compensation payments. They have some special rules for calculating severance pay, including (1) how to calculate severance up to twelve months with joint termination or termination due to incapacity, (2) how to calculate severance pay based on average wages. per month for all twelve people months before termination under 'Normal production conditions' and (3) How to calculate compensation for employees who are fired after taking several days off. For employees whose contracts can no longer be performed due to a material change in the performance of the employment contract. and for mass layoffs
before these measures are lifted Many Chinese arbitrators and judges believe the measures have been partially overturned because they violate China's labor contract laws. But legal outcomes in this area are inconsistent.
When China's Labor Contract Law came into effect on January 1, 2008, it was clear that compensation should be calculated based on the number of years worked from the effective date of this law. The basic rule under the Employment Contracts Act is every year (i.e. for a period longer than six months) that the employee has worked for the employer. He or she will receive one month's salary in case of termination. With an employment contract of less than 6 months, the employee is entitled to receive half a month's salary. If the employee's monthly wage is higher than 300% of the local average monthly wage of the previous year. Local averages can then be used to calculate compensation. In this situation The number of years of service used to calculate statutory compensation is limited to twelve years.
But the Employment Contracts Act leaves open how it will deal with employees who started work before 1 January 2008, before the measure is invalid. Technically, these measures are still in effect. As a result, there are different methods for calculating compensation. Depends on different local labor laws. The specific method depends on: (1) the employee's tenure with a particular employer; (2) the length of time the employee worked for the employer before January 1, 2008; (3) the employee's average salary during the twelve months preceding the expiration or expiration of the employment contract; and (4) the basis on which The employment relationship ends or ends.
The lifting of these measures has not changed much. Although many specific changes (and thus unchanged) will vary depending on the region in which the employer is located. As is almost always the case with Chinese labor laws.
Assuming the measure remains in effect and the employer's location does not have other local rules, employees who have worked for the employer since June 1, 1995, are being fired under a signed collective termination agreement. On January 1, 2018, according to Chinese labor law. Employees must receive severance pay. How would you calculate this employee's compensation? If her average monthly wage for the 12 months before termination is more than 300% of the local average monthly wage for the previous year. If you use the rules within the measure, divide it into 2 periods when calculating severance pay: (1) for the period before January 1, 2008, where her average monthly wage in the 12 months before termination is multiplied by 12 (since will be used for no more than twelve months) and (2) for the period after January 1, 2008, the compensation will be equal to 300 percent of the local average monthly wage of the previous year multiplied by 10.
After these measures are lifted The calculation of dismissal under the above section will change.
