How to compensate for layoffs in the factory

How to compensate for factory layoffs: latest policy and practical guide

Recently, affected by the fluctuation of the economic environment, companies in many places have reported news of layoffs, and workers' attention to compensation standards has increased significantly. This article will combine the hot discussions on the Internet in the past 10 days to systematically sort out the legal basis, calculation methods and common problems of layoff compensation to help workers safeguard their legitimate rights and interests.

1. Legal Basis and Compensation Standards

According to Articles 41 and 47 of the Labor Contract Law, economic compensation must be paid to enterprises for economic layoffs. The specific standards are as follows:

Note:Monthly salary refers to the employee’s average salary in the 12 months before leaving the job, including bonuses, allowances, etc.

2. Latest compensation case data in 2024

By analyzing 10 typical layoff cases reported publicly (May-June 2024), the compensation situation is as follows:

3. Practical steps for compensation calculation

1.Confirm the nature of layoffs:Distinguish between economic layoffs (which need to be reported to the labor department) and illegal layoffs (double compensation)
2.Calculate base:Total income in the previous 12 months ÷12, if it is higher than 3 times the local average wage, it will be calculated as 3 times
3.Conversion of length of service:The portion less than a full year is calculated on a pro-rata basis (e.g. 1 year and 3 months = 1.25 times)
4.Additional compensation:Failure to notify 30 days in advance will require an additional month's salary (N+1)

4. Answers to high-frequency disputes

Q1:Are performance bonuses included in the compensation base?
A:According to the judicial interpretation of the Supreme Court, regularly distributed bonuses should be included in the calculation.

Q2:Will negotiating to terminate the contract affect compensation?
A:The compensation agreed upon by both parties may be higher than the legal standard, but shall not be lower.

Q3:How to compensate for being laid off during the probation period?
A:After working for one month, you need to pay 0.5 months salary compensation.

5. Notes on rights protection

1. Keep evidence of labor contracts, salary slips, etc.
2. Require the enterprise to issue a written notice of termination
3. The statute of limitations for arbitration is 1 year (from the date of layoff)
4. You can apply for unemployment insurance benefits at the same time (does not affect compensation)

Recently, human resources and social security departments in many places have opened online rights protection channels, and workers can quickly submit complaints through the 12333 hotline or government service APP. It is recommended to stay calm when encountering layoffs, assert your rights and interests in accordance with the law, and avoid signing an unfavorable separation agreement.