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If the employer does not renew the labor contract with the employee, the employer shall pay the employee severance according to the wage standard of one month for each year of employment. If the employee meets the conditions of signing an indefinite-term labor contract, and the employer refuses to renew the contract, it is illegal to terminate the contract, and the employee shall be paid compensation at the rate of 2 months' salary for every 1 year of service.
1. If the employer proposes not to renew the visa, it shall pay the employee severance and pay one month's salary for one year of service; If the employee requests to renew the indefinite-term labor contract under Article 14 of the Labor Contract Law, and the employer refuses to renew the labor contract illegally, the employer shall pay the employee compensation and pay 2 months' wages for 1 year of service;
2. If the employee does not renew the contract, there will be no severance unless the conditions stipulated in the new labor contract provided by the employer are increased.
Labor Contract Law
Article 14 An indefinite-term labor contract refers to a labor contract in which the employer and the employee agree on an indefinite termination time.
The employer and the employee may enter into an indefinite-term labor contract if they reach an agreement through consultation. In any of the following circumstances, if an employee proposes or agrees to renew or conclude a labor contract, an indefinite-term labor contract shall be concluded in addition to the employee's proposal to conclude a fixed-term labor contract:
1) The worker has worked for the employer for 10 consecutive years;
2) When the employer implements the labor contract system for the first time or the state-owned enterprise restructures and re-concludes the labor contract, the worker has worked for the employer for 10 consecutive years and is less than 10 years away from the statutory retirement age;
3) Where two fixed-term labor contracts are concluded consecutively, and the labor contract is renewed without the circumstances provided for in Article 39 and Paragraphs 1 and 2 of Article 40 of this Law.
If the employer does not conclude a written labor contract with the employee within one year from the date of employment, it shall be deemed that the employer and the employee have entered into an indefinite labor contract.
Article 46 Under any of the following circumstances, the employer shall pay economic compensation to the worker:
5) Terminating a fixed-term labor contract in accordance with the provisions of Paragraph 1 of Article 44 of this Law, except in the case where the employer maintains or improves the agreed conditions of the labor contract and the employee does not agree to renew the labor contract;
Article 47 Economic compensation shall be paid to the worker according to the number of years he or she has worked in the unit and one month's salary for each full year. where it is more than six months but less than one year, it is calculated as one year; If it is less than six months, the worker shall be paid half a month's salary.
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1. Meaning of Labor Contract A labor contract refers to an agreement between an employee and an employer that establishes a labor relationship and clarifies the rights and obligations of both parties. The conclusion and modification of labor contracts shall follow the principles of equality, voluntariness, and consensus, and shall not violate the provisions of laws and administrative regulations. The employment contract shall be legally binding immediately and shall be binding upon the parties, and the parties shall perform their obligations under the employment contract.
According to the first paragraph of Article 16 of the Labor Law of the People's Republic of China (hereinafter referred to as the "Labor Law"), an employment contract is an agreement between an employee and an employer to establish an employment relationship and clarify the rights and obligations of both parties. According to this agreement, the worker joins an enterprise, individual economic organization, public institution, state organ, social organization and other employers, becomes a member of the unit, undertakes certain types of work, positions or duties, and abides by the internal labor rules and other rules and regulations of the employer; The employer shall arrange the work of the hired workers in a timely manner, pay labor remuneration according to the quantity and quality of the labor provided by the workers, and provide necessary working conditions in accordance with the provisions of labor laws, regulations and labor contracts, so as to ensure that the workers enjoy labor protection, social insurance, welfare and other rights and benefits. II. Compensation for Employees Not Renewing Labor Contracts with the Employer Employees who do not renew their labor contracts with the employer will be compensated if they do not renew their labor contracts with the employer, and there will be no compensation if the employer does not renew the contract after the expiration of the contract.
The new Employment Contract Law stipulates that if the employment contract expires and the employer and the employee do not renew the contract, the contract will be terminated. At the same time, the law stipulates that the employer shall pay economic compensation to the employee unless the employer maintains or improves the agreed conditions of the labor contract and renews the labor contract, and the employee does not agree to renew the labor contract. At the expiration of the labor contract, if the employer agrees to renew the labor contract and maintains or improves the terms and conditions of the labor contract, and the employee does not agree to renew, the labor contract shall be terminated and the employer shall not pay economic compensation; If the employer agrees to renew the labor contract but lowers the conditions of the labor contract, and the employee does not agree to renew, the labor contract shall be terminated and the employer shall pay economic compensation. If the employer does not agree to renew, the employment contract shall be terminated regardless of whether the employee agrees to the renewal or not, and the employer shall pay economic compensation.
The Labor Contract Law also stipulates that if economic compensation shall be paid in accordance with the provisions of this Law, the period of economic compensation shall be calculated from the date of implementation of this Law; Before the implementation of this Law, if an employer is required to pay economic compensation to a worker in accordance with the relevant provisions at that time, it shall be implemented in accordance with the relevant provisions at that time. Severance shall be paid to the worker according to the number of years he or she has worked in the unit and one month's salary for each full year. where it is more than six months but less than one year, it is calculated as one year; If it is less than six months, the worker shall be paid half a rough monthly wage.
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1. The employer raises the terms and conditions of the original labor contract, but the employee refuses to renew it; 2. The employer maintains the terms and conditions of the original labor contract, but the employee refuses to renew the contract; 3. The employer lowers the conditions of the original labor contract, and the employee refuses to renew it; 4. The employer unilaterally refuses to renew the visa.
1. Several situations in which the labor contract is not renewed upon expiration
1. The employer raises the agreed conditions of the original labor contract and the employee refuses to renew the contract;
2. The employer maintains the terms and conditions of the original labor contract, but the employee refuses to renew the contract;
3. The employer lowers the conditions of the original labor contract, and the employee refuses to renew it;
4. The employer unilaterally refuses to renew the visa.
2. Does the employer need to pay severance if the labor contract is not renewed upon expiration?
In the case of non-renewal of the above-mentioned labor contract upon expiration, according to Article 46 of the Labor Contract Law, the employer does not need to pay severance if the employer raises or maintains the original labor contract to renew the contract with the employee, and the employee refuses.
On the other hand, if the employer lowers the original employment contract and argues about this condition, the employee is required to pay economic compensation if he refuses to renew the contract, while the employer unilaterally refuses to renew the contract, regardless of whether the employee agrees or not, the employee needs to pay economic compensation.
However, after the employer has entered into two fixed-term labor contracts in a row, according to Article 14 of the Labor Contract Law, an indefinite-term labor contract shall be signed for the third renewal. After signing a labor contract twice in a row, the second labor contract expires, and the employer has any of the above circumstances, it is deemed to have terminated the labor contract illegally.
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It is illegal for the company not to renew the contract. If the employer refuses to renew the labor contract after it expires, it shall pay the employee severance for the termination of the labor contract, i.e., one month's salary for each full year of service.
OneWould it be illegal for the company not to renew the contract?
It is illegal for the company not to renew the contract.
If the employer proposes not to renew the visa, it shall pay the employee severance compensation; If an employee requests to renew an indefinite-term employment contract under Article 14 of the Labor Contract Law, the employer refuses to renew the employment contract and shall pay the employee compensation. That is, for each full year of service, the worker is paid one month's salary as economic compensation. If the employer refuses to renew the labor contract after it expires, it shall pay the employee severance for the termination of the labor contract, i.e., one month's salary for each full year of service, as severance compensation.
IIWhat is the labor contract renewal process?
The labor contract renewal process is:
Noisy base 130 days' notice for the renewal of the employment contract. Upon the expiration of the term of the labor contract or the occurrence of other statutory or agreed termination conditions, either party requests to renew the labor contract;
A notice of renewal of the employment contract should be issued to the other party 30 days in advance; And negotiate with the other party in a timely manner to renew the labor contract in accordance with the law.
A written reply will be given within a few days. One party receiving a notice from the other party shall reply in writing within 7 days from the date of receipt of the notice.
3.Sign a new employment contract. If there is a significant change in the main terms of the original labor contract, the two parties shall renegotiate and sign a new labor contract.
4.The terms of the employment contract have not changed much. If the terms of the original employment contract have not changed much, the parties may sign an agreement to extend the employment contract and specify the duration of the continuation of the employment contract and other terms of the contract that need to be redetermined.
5.The company and the employee reach an agreement through consultation. If the labor contract is renewed, the renewal procedures shall be completed within one month after the expiration of the original labor contract.
6.Cases in which the company may not pay financial compensation. If the company expresses its intention to renew the labor contract and maintains or improves the terms and conditions of the labor contract, and the employee does not agree to renew, the company may not pay economic compensation.
IIIWhat should I pay attention to if the contract is not renewed after the expiration of the contract
1.When the employer renews the labor contract, the employer is required to pay compensation to the employee (one month's salary for each year of service).
2.If the employer does not renew the labor contract with an indefinite term, it is an illegal termination of the labor contract, and compensation needs to be paid to the employee (2 months' salary for each year of service).
3.If the employee does not renew the contract, the employer does not need to pay compensation, and the employer maintains or improves the terms and conditions of the labor contract to renew the labor contract, except where the employee does not agree to renew.
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1. In response to the provisions on how to deal with the employee's disagreement with the renewal of the contract, the employee shall be persuaded to explain that the contract is to protect his legitimate rights and interests. Otherwise, when he is treated unequally, he will not receive any guarantees.
2. Explain the company's position, that is, if the labor contract is not signed, the company will not have the right to appoint any employee. If he still refuses to sign the employment contract, the company will terminate the employment relationship immediately.
3. If the employee still does not sign the labor contract, it means that the employee already has the idea of leaving at any time, then it is better to leave late than early to avoid bearing double wages in the future, and such an employee has lost his loyalty to the employer, which will have greater hidden dangers for the enterprise.
4. When new employees enter the company, if they are more satisfied with the inspection, it is recommended to sign the labor contract directly at the time of entry, and agree on the probation period.
5. For some employees who clearly indicate that they do not want to sign a contract at the time of entry, it is recommended not to hire, if they must be hired because of work needs, it is recommended to directly ask the employee to clearly indicate that he is not willing to sign a labor contract with the enterprise when he joins, or directly to the employee at the time of entry to serve a notice of signing a labor contract, stipulating the time for the employee to sign the labor contract, and the employee to sign the labor contract, if the employee refuses to sign, the responsibility is no longer the enterprise, of course, The style of the notice of signing the contract should be designed to prevent employees from ripping off, advocating that they sign the contract according to the requirements of the notice, and the relevant statement that the enterprise refuses to sign it.