LCL 41, 46.4; Mass Layoffs

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The following provisions of the Labor Contract Law of the People’s Republic of China (LCL) detail legal stipulations on mass layoffs and economic compensation for mass layoffs.

Article 41 - Mass Layoff Conditions 

If, in any of the following circumstances, an employing unit needs to cut employment by more than 20 persons, or by less than 20 persons, which, however, accounts for more than 10 per cent of the total number of the enterprise’s employees, it may do so after it explains the situation to the trade union or all of its employees 30 days in advance, solicits opinions from among them and submit its plan for cutting employment to the administrative department of labor:

(1) The enterprise is to undergo reorganization pursuant to the provisions of the Law on Enterprise Bankruptcy;

(2) The enterprise is in dire straits in production and management;

(3) The enterprise changes its line of production, introduces a major technological updating or adjusts its business method, and, after modification of the labor contracts, still needs to reduce its personnel; or

(4) The objective economic conditions taken as the basis for conclusion of the labor contracts have greatly changed, so that the original labor contracts cannot be performed.

When cutting employment, the employing unit shall continue to employ the following persons by giving priority to them:

(1) persons who have concluded fixed-term labor contracts for a relatively long term with the employing unit;

(2) persons who have concluded open-ended labor contracts with the employing unit; and

(3) persons none of whose other family members has a job or who have an elder or minor depending on his support.

If an employing unit that has cut its employment pursuant to the provisions in the first paragraph of this Article goes to recruit employees anew within six months, it shall give notification to the laid off persons and, under equal conditions, recruit them before others.

Article 46.4 - Economic Compensation for Mass Layoffs 

The employing unit shall pay financial compensation to a worker under one of the following circumstances:

(1) The worker revokes the labor contract pursuant to the provisions in Article 38 of this Law;

(2) The employing unit proposes revocation of the labor contract to the worker pursuant to the provisions in Article 36 of this Law and the parties reach an agreement thereon through consultation;

(3) The employing unit revokes the labor contract pursuant to the provisions in Article 40 of this Law;

(4) The employing unit revokes the labor contract pursuant to the provisions in the first paragraph of Article 41 of this Law;

(5) The fixed-term labor contract is terminated pursuant to the provisions in Subparagraph (1) of Article 44 of this Law, except that the worker does not agree to renew the contract even though the employing unit maintains the same conditions as, or offers better conditions than, the ones stipulated in the previous contract;

(6) The labor contract is terminated pursuant to the provisions of Subparagraph (4) or (5) of Article 44 of this Law; or

(7) Under any other circumstances provided for by laws or administrative regulations.

第四十一条

有下列情形之一，需要裁减人员二十人以上或者裁减不足二十人但占企业职工总数百分之十以上的，用人单位提前三十日向工会或者全体职工说明情况，听取工会或者职工的意见后，裁减人员方案经向劳动行政部门报告，可以裁减人员：

（一）依照企业破产法规定进行重整的；

（二）生产经营发生严重困难的；

（三）企业转产、重大技术革新或者经营方式调整，经变更劳动合同后，仍需裁减人员的；

（四）其他因劳动合同订立时所依据的客观经济情况发生重大变化，致使劳动合同无法履行的。

裁减人员时，应当优先留用下列人员：

（一）与本单位订立较长期限的固定期限劳动合同的；

（二）与本单位订立无固定期限劳动合同的；

（三）家庭无其他就业人员，有需要扶养的老人或者未成年人的。

用人单位依照本条第一款规定裁减人员，在六个月内重新招用人员的，应当通知被裁减的人员，并在同等条件下优先招用被裁减的人员。

第四十六条

有下列情形之一的，用人单位应当向劳动者支付经济补偿：

（一）劳动者依照本法第三十八条规定解除劳动合同的；

（二）用人单位依照本法第三十六条规定向劳动者提出解除劳动合同并与劳动者协商一致解除劳动合同的；

（三）用人单位依照本法第四十条规定解除劳动合同的；

（四）用人单位依照本法第四十一条第一款规定解除劳动合同的；

（五）除用人单位维持或者提高劳动合同约定条件续订劳动合同，劳动者不同意续订的情形外，依照本法第四十四条第一项规定终止固定期限劳动合同的；

（六）依照本法第四十四条第四项、第五项规定终止劳动合同的；

（七）法律、行政法规规定的其他情形。

Labor Contract Law of the People’s Republic of China

http://english.www.gov.cn/archive/laws_regulations/2014/08/23/content_281474983042501.htm 

中华人民共和国劳动合同法

http://www.mohrss.gov.cn/SYrlzyhshbzb/zcfg/flfg/fl/201605/t20160509_239643.html

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