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During the period when the employer is on the verge of bankruptcy and suspension of business for rectification or when serious difficulties occur in production and operation, the employer shall explain the situation to the labor union or all employees 30 days in advance and report to the local labor administrative department before laying off employees.
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If the company needs to downsize or even close down; The company relocates workers who are unwilling to work in other places; The contract cannot be continued due to other reasons.
Labor Contract Law:
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:
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.
Article 41 In any of the following circumstances, where it is necessary to lay off 20 or more employees or less than 20 but accounting for more than 10 percent of the total number of employees of the enterprise, the employer shall explain the situation to the trade union or all employees 30 days in advance, and after listening to the opinions of the trade union or the employees, it may reduce the number of personnel after reporting to the labor administrative department:
1) Reorganization is carried out in accordance with the provisions of the Enterprise Bankruptcy Law;
2) Serious difficulties occur in production and operation;
3) The enterprise still needs to lay off personnel after changing the labor contract, after changing the labor contract;
4) Other situations where the labor contract cannot be performed due to major changes in the objective economic conditions on which the labor contract is based.
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1) Reorganization shall be carried out in accordance with the provisions of the Enterprise Bankruptcy Law. Paragraph 1 of Article 70 of the Enterprise Bankruptcy Law stipulates that: "The debtor or creditor may, in accordance with the provisions of this Law, directly apply to the people's court for reorganization of the debtor." "If an enterprise undergoes reorganization in accordance with the law, it may lay off its personnel.
2) Serious difficulties occur in production and operation. The occurrence of serious difficulties refers to the fact that the employer's production and operation are unsustainable and the employer has to lay off employees. Fiber return.
3) After the change of production or major technological innovation or adjustment of business mode of the enterprise, it is still necessary to lay off personnel after changing the labor contract. The change of production of enterprises refers to the change of the main business of the company, a major technological innovation, which may result in the same work being completed with fewer workers. If it is necessary to lay off personnel in the transformation of enterprises, technological innovation, or adjustment of business methods, it is necessary to first change the labor contract, that is, to reduce working hours and rotate work for the purpose of reducing personnel as much as possible.
Where it is still necessary to reduce personnel after adopting the above measures, personnel may be reduced.
In addition, the performance of the labor contract cannot be performed due to major changes in the objective economic situation on which the labor contract was concluded.
1. Precautions for economic layoffs.
1) The labor contract cannot be performed due to the occurrence of the listed circumstances.
This is the main reason for the occurrence of economic layoffs, if the employment contract between the enterprise and the employee can continue to be performed despite the occurrence of the four circumstances listed in the first paragraph of Article 41 of the Labor Contract Law. If there is no need for the enterprise to lay off employees, there is no need to terminate the employment contract.
2) The number of redundancies must meet the legal standards.
Since economic layoffs are prone to cause serious social problems, the number of layoffs stipulated by law is 20 or more, or less than 20 but accounting for more than 10 percent of the total number of employees in an enterprise. If the number of layoffs does not meet this statutory standard, the employer can only terminate the employment contract through negotiation between the two parties.
3) Solicit the opinions of the trade union or all workers and report to the labor administrative department.
When an employer carries out an economic layoff, it must explain the situation to the trade union or all employees 30 days in advance, and propose a layoff plan, including: the list of employees to be laid off, the time of the layoffs, and the implementation of the economic compensation measures for the laid off personnel, which are in accordance with the provisions of laws and regulations. Layoffs can be made after the opinions of the trade unions or all employees have been consulted and the reduction plan has been reported to the labour administration.
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If an employer is on the verge of bankruptcy and undergoing statutory rectification or serious difficulties arise in its production and operation conditions, and it is truly necessary to lay off employees, it shall explain the situation to the trade union or all employees 30 days in advance, listen to the opinions of the trade union or employees, and may lay off employees after reporting to the labor administrative department.
[Legal basis].Article 27 of the Labor Law of the People's Republic of China talks about towns.
If an employer is on the verge of bankruptcy and undergoing statutory rectification or has serious difficulties in its production and operation conditions, and it is truly necessary to reduce the number of employees who are sold in a state of ruin, it shall explain the situation to the trade union or all employees 30 days in advance, listen to the opinions of the trade union or employees, and may lay off the personnel after reporting to the labor administrative department.
Where an employer lays off personnel in accordance with the provisions of this Article and hires personnel within six months, it shall give priority to the personnel who have been laid off.
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Legal analysis: the circumstances under which the company may lay off employees: the enterprise changes production, major technological innovation or adjustment of business mode, and still needs to lay off employees after changing the labor contract; reorganization is carried out in accordance with the provisions of the Enterprise Bankruptcy Law; Serious difficulties occur in production and operation; Other cases where the labor contract cannot be performed due to major changes in the objective economic conditions on which the contract was based at the time of the conclusion of the contract.
Legal basis: Article 41 of the Labor Contract Law of the People's Republic of China In any of the following circumstances, if it is necessary to lay off more than 20 employees or less than 20 employees but accounting for more than 10% of the total number of employees of the enterprise, the employer shall explain the situation to the trade union or all employees 30 days in advance, and after listening to the opinions of the trade union or employees, the personnel reduction plan may be reduced after reporting to the labor administrative department: (1) reorganization shall be carried out in accordance with the provisions of the Enterprise Bankruptcy Law; 2) Serious difficulties occur in production and operation; 3) The enterprise still needs to lay off personnel after changing the labor contract, after changing the labor contract; (4) The labor contract cannot be performed due to a major change in the objective economic situation on which the labor contract was concluded.
When laying off personnel, priority shall be given to retaining the following personnel: (1) those who have entered into a fixed-term labor contract with the unit for a longer period; (2) Entering into an indefinite labor contract with the unit; (3) There are no other employed persons in the family, and there are elderly or minors who need to be supported. Where an employer lays off personnel in accordance with the provisions of the first paragraph of this Article and rehires the personnel within six months, it shall notify the personnel who have been laid off and give priority to the recruitment of the employees who have been laid off under the same conditions.
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