Legal basis: People's Republic of China (PRC) Labor Contract Law.
Article 14 An open-ended labor contract refers to a labor contract in which the employer and the employee agree that there is no fixed termination time. The employer and the employee may conclude an open-ended labor contract through consultation. Under any of the following circumstances, if the employee proposes or agrees to renew or conclude a labor contract, an open-ended labor contract shall be concluded in addition to the employee's proposal to conclude a fixed-term labor contract: (1) The employee has worked in the employer continuously for ten years; (2) When the employing unit implements the labor contract system for the first time or the state-owned enterprise is restructured and re-concludes the labor contract, the employee has worked in the employing unit continuously for ten years and is less than ten years away from the statutory retirement age; (3) Two fixed-term labor contracts have been concluded in succession, and the employee does not have the circumstances stipulated in Items 1 and 2 of Article 39 and Article 40 of this Law, and the labor contract is renewed. If the employer fails to conclude a written labor contract with the employee within one year from the date of employment, it shall be deemed that the employer has concluded an open-ended labor contract with the employee.
Article 46 Under any of the following circumstances, the employer shall pay economic compensation to the employee: (1) The employee terminates the labor contract in accordance with the provisions of Article 38 of this Law; (2) The employing unit proposes to terminate the labor contract with the laborer in accordance with the provisions of Article 36 of this Law, and the labor contract is terminated through consultation with the laborer; (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) Terminating a fixed-term labor contract in accordance with the provisions of the first paragraph of Article 44 of this Law, except that the employer maintains or improves the conditions stipulated in the labor contract to renew the labor contract and the employee does not agree to renew it; (6) The labor contract is terminated in accordance with the provisions of Item 4 and Item 5 of Article 44 of this Law; (seven) other circumstances stipulated by laws and administrative regulations.
Forty-seventh economic compensation shall be paid according to the standard of one month's salary for each full year of work in the unit. For more than six months but less than one year, it shall be counted as one year; If it is less than six months, economic compensation of half a month's salary shall be paid to the workers. If the monthly salary of workers is three times higher than the average monthly salary of local workers announced by the people's government of the municipality directly under the central government or the city divided into districts where the employer is located, the standard for paying economic compensation to workers is three times the average monthly salary of workers, and the longest period for paying economic compensation to workers shall not exceed 12 years. The monthly salary mentioned in this article refers to the average salary of workers in the twelve months before the dissolution or termination of the labor contract.