How far does the new Labor Law stipulate that a company can compensate its employees if it relocates

The law does not clearly stipulate how far a business can be considered to have undergone a major change. However, the interpretation rules of the law stipulate that after the relocation of an enterprise, it cannot affect the daily work travel of employees, nor can it greatly increase the travel distance and cost of employees.

Labor Contract Law of the People's Republic of China

Article 40 Under any of the following circumstances, the employer may terminate the labor contract after notifying the employee in writing 30 days in advance or paying the employee an additional month's salary:

1) The worker is sick or injured not due to work, and is unable to perform his original job or work arranged by the employer after the prescribed medical treatment period has expired;

2) The worker is incompetent for the job, and is still incompetent for the job after training or job adjustment;

c).There is a major change in the objective circumstances on which the labor contract was concluded, making it impossible to perform the labor contract, and the employer and the employee fail to reach an agreement on changing the content of the labor contract after consultation.

According to the Explanation of Several Provisions of the Labor Law of the People's Republic of China issued by the Ministry of Labor, "the 'objective circumstances' in this article refer to the occurrence of force majeure or other circumstances that make it impossible to perform all or part of the terms of the labor contract, such as the relocation of an enterprise, the merger, the transfer of enterprise assets, etc.", but does not include the objective conditions that lead to economic layoffs.

However, considering the actual situation and legislative intent, not all enterprise relocation is subject to the termination provision, but the relocation of the workplace that has undergone a major change and the employment contract cannot be performed can be regarded as a trigger condition. The employment contract is signed on the basis of various conditions at the time of signing. According to the Employment Contract Law, the place of work is one of the necessary clauses of the employment contract, and the description of the place of work is an important criterion for judgment.

Assuming that the employer informs in advance that there will be a significant change in the place of work, it will obviously affect the employee's decision when signing the employment contract. Therefore, if the employment contract is not clearly stated that there will be a major change in the workplace in the future, the relocation of the employer should be carried out in accordance with the provisions of Article 40 of the Labor Contract Law. Legal basis:

Article 40 of the Labor Contract Law of the People's Republic of China provides that under any of the following circumstances, the employer may terminate the labor contract after giving 30 days' written notice to the employee or paying the employee an additional month's salary: (1) the employee is sick or injured not due to work, and is unable to perform the original job or work arranged by the employer after the expiration of the prescribed medical treatment period; 2) The worker is incompetent for the job, and is still incompetent for the job after training or job adjustment; (3) There is a major change in the objective circumstances on which the labor contract was concluded, making it impossible to perform the labor contract, and the employer and the employee fail to reach an agreement on changing the content of the labor contract after consultation.

According to the provisions of the Labor Contract Law and the judicial practice of various localities, if an enterprise relocates or relocates within the administrative area of the city, and the employees can take the city's public transportation to and from work, or the enterprise provides transportation subsidies, free transportation transportation and other convenient conditions, and there is no obvious impact on the employees' lives, the labor contract shall continue to be performed, and the employees will not be compensated for not relocating with them; On the contrary, the employee may terminate the contract if the employer fails to provide working conditions in accordance with the labor contract, and is entitled to economic compensation.

If the relocation location does not have a great adverse impact on the employee, and the appropriate change of the workplace has been agreed in the labor contract, the employee shall obey, if the company moves far away when relocating, it will inevitably increase the burden of the employee and have a significant impact on the worker's life, and the change of the workplace has seriously affected the realization of the purpose of the contract. The worker has the right to refuse to work at the changed place of work. In this case, the employee also has the right to request the termination of the labor relationship and the right to receive economic compensation. Article 46 of the Labor Contract Law stipulates that under any of the following circumstances, the employer shall pay economic compensation to the employee:

1) The worker terminates the labor contract in accordance with the provisions of Article 38 of this Law; (2) The employer proposes to terminate the labor contract to the worker in accordance with the provisions of Article 36 of this Law, and terminates the labor contract in agreement with the labor association and the orange potato merchant; (3) The employer terminates the labor contract in accordance with the provisions of Article 40 of this Law; (4) The employer terminates the labor contract in accordance with the provisions of the first paragraph of Article 41 of this Law; (5) 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, the fixed-term labor contract is terminated in accordance with the provisions of Paragraph 1 of Article 44 of this Law; (6) Terminating a labor contract in accordance with the provisions of Paragraphs 4 and 5 of Article 44 of this Law; (7) Other circumstances provided for by laws and administrative regulations.