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Human Resources Training Policy: Economic Compensation for Termination of Labor Contracts

发布时间:2019-12-26 14:39:14 点击量: Source: Global Online School Release Time: 2019-12-26 14:39:14 Clicks: share it:

After the labor contract is terminated or terminated, financial compensation must be paid. This issue is of great concern to both units and employees. So how to calculate the economic compensation? Let me talk about it today.

According to the "Labor Contract Law", economic compensation is paid to workers according to the standard of one year's wages paid every year. If it is more than 6 months and less than one year, it is calculated as one year; if it is less than 6 months, it is paid to the worker for half a month of economic compensation.

The monthly salary here refers to the average wage of the worker for 12 months before the termination or termination of the labor contract. If it is less than 12 months, the average salary is calculated based on the number of months of actual work.

What are the monthly wages in it? The Regulations for the Implementation of the Labor Contract Law stipulate that the monthly wages for economic compensation are calculated according to the wages due to workers, including hourly wages or piece rate wages and monetary income such as bonuses, allowances and subsidies.

It should be noted that if the average wage of a worker 12 months before the termination or termination of the labor contract is lower than the local minimum wage standard, economic compensation shall be calculated according to the local minimum wage standard.

In addition, there is a cap on economic compensation. According to the Labor Contract Law, if the monthly salary of the employee is higher than the average monthly salary of the employee in the previous year by three times, the standard of economic compensation shall be paid at three times the average monthly salary of the employee, and the period shall not exceed 12 years.

Take Beijing as an example

After this year's research, it was decided that the average salary of employees in legal entities in Beijing issued by the Municipal Statistics Department should be used as the ceiling for economic compensation. In 2018, the average salary of employees in legal entities in Beijing was 127,107 yuan per year, and the average monthly salary was approximately 10,592 yuan. In other words, if the actual wage of the worker is three times higher than 10592 yuan, the employer will no longer calculate the actual wage of the worker when paying the economic compensation, but will calculate it based on three times the 10592 yuan. , The payment period does not exceed 12 years.

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