배움과 공유의 시간

 Economic Rewards



China’s economic compensation is quite different in its legal nature from Korea’s severance pay, which has the later nature of wages. In China, the management's obligation to pay the gold shall arise only if it conforms to the statutory reasons stipulated in the law. As the term "economic compensation" in China means, the reason for retirement is not on the part of the labor side, but on the part of the company (release the agreement, lay-off, etc.)
Or, if a worker is fired for reasons other than intentional negligence (disease, injury, incapacity for work, etc.) it has the nature of compensation to guarantee basic life during the months of unemployment until reemployment.

1. The nature and payment requirements of economic compensation

Fundamental principle of economic compensation payment
Whether China's economic compensation will be paid depends on whether the company is responsible or not.
If the cause of the labor side, i.e. notwithstanding the company's intention to continue employment, is submitted and quit due to its own reasons, or if the management refuses to offer continued employment at the time of the contract renewal, the management's obligation to pay economic compensation shall be waived.
Since the attempt to retire under the legal age of the workers themselves is considered to be the cause of the workers, there is no need to provide economic compensation unlike in Korea (retirement under the national law, which is subject to monthly pension coverage, exempts companies from economic compensation obligations).
Due to the complexity of China's economic compensation system, it is necessary to grasp the relevant laws accurately, as labor disputes are frequent at the time of retirement, and whether the reason for resignation is on which side or the payment is appropriate.

Economic compensation when the negotiation is cancelled
If a labor contract is terminated through consultation between the company and employees before the expiration of the labor contract period, the payment of the economic compensation money is determined by which party raised the settlement. If the entity proposes to terminate the contract and the worker agrees, the obligation to pay the compensation money arises.
On the other hand, if, for example, due to the conclusion of a mandatory service term agreement, the employee cannot retire at will without the consent of the company, and the company agrees to cancel the contract. In this case, when preparing a labor contract negotiation consultation agreement, the government must insert the words "released by the workers" or submit a letter of resignation to prevent a later case of economic compensation from being filed by the workers.

Economic compensation when resigning as a volunteer
There is no obligation to prevent economic compensation when resigning. However, in the event of a labor dispute, the management must prove that it is a "resource doctor," not a written resignation under a handwritten signature.
Faxes, cell phones, or punctuation employees should never be accepted, and in this case, a written resignation must be required to be submitted in this case.

Economic compensation for the termination of employment due to contract
When the contract expires, the contract is terminated naturally. At this time, if the company does not renew the contract,
Economic compensation shall be calculated and paid for the period of service after January 2008 (labor contract law).
Shin: However, despite the company's announcement of its intention to renew, the workers refused to renewals.
When a labor relationship is terminated, the entity has no obligation to pay economic compensation. However, in this case, later
To avoid conflict, evidence of workers' refusal to renew must be secured.
In a commonly used way, the company pays the current salary about a month before the contract expires.
They send a letter of intent to renew the labor contract on a lower condition and demand a written reply to the consent within the specified period. If an employee replies by expressing his intention to renew his or her intention, the employee may use it as evidence of unpaid economic compensation.
Meanwhile, in the case of sensitive business management positions, such as accounting and personnel, which were in charge of the company's important activities,
He will not be able to renew himself.In order to end a smooth employment relationship, it is desirable to pay economic compensation.

Discipline, financial compensation not paid.
If the entity is to file a disciplinary action on the basis of Article 39 of the Labor Contract Act, it is not necessary to pay economic compensation. However, there are also frequent cases of dismissal without sufficient evidence or job rules for disciplinary action. In this case, if a labor action is filed and ruled as illegal, the entity shall pay the employee an economic compensation amount equal to twice that of the economic compensation, not an economic compensation amount, (the payment of the economic compensation is not required).

Economic compensation for the dismissal of workers without negligence
In the event of dismissal due to a serious change in the conditions of disease, job defect and objectivity, not to the negligence of the workers, the company may cancel the contract by giving economic compensation plus one month. However, since fruitless layoffs require N+1 compensation and require the implementation of long-term, difficult legal procedures, in most cases, the company persuades staff with relevant evidence and sends them out in a "negotiation-free" manner. At this time, N+1 compensation is basically necessary, and there are cases where a small amount of compensation is added to facilitate negotiations.

Economic compensation on the resignation of labor's reasons for misconduct
In the event that a worker submits his or her resignation unilaterally, lifts the contract, and raises labor claims, the company shall pay economic compensation, citing misconduct by management, such as unpaid social insurance, delayed wages, unpaid overtime expenses, etc. However, since this clause is a new law under the Labor Contract Act, only the number of years of service since January 2008 will be subject to the calculation of economic compensation.
compensation money



China’s economic compensation is quite different in its legal nature from Korea’s severance pay, which has the later nature of wages. In China, the management's obligation to pay the gold shall arise only if it conforms to the statutory reasons stipulated in the law. As the term "economic compensation" in China means, the reason for retirement is not on the part of the labor side, but on the part of the company (release the agreement, lay-off, etc.)