Article 4 1 of the Labor Contract Law stipulates as follows:
Under any of the following circumstances, if it is necessary to lay off more than 20 employees or less than 20 employees, but it accounts for more than 10% of the total number of employees in the enterprise, the employer may lay off employees after explaining the situation to the trade union or all employees 30 days in advance and listening to the opinions of the trade union or employees.
1. Restructure in accordance with the provisions of the Enterprise Bankruptcy Law.
2. Serious difficulties in production and operation.
3, enterprise production, major technological innovation or management mode adjustment, after the change of the labor contract, still need to reduce staff.
4. Other major changes have taken place in the objective economic situation on which the labor contract was concluded, resulting in the inability to perform the labor contract.
Extended data
According to Articles 46 and 47 of the Labor Contract Law, the company needs to compensate the layoffs, as specified below:
Article 46 Under any of the following circumstances, the employing unit shall pay economic compensation to the workers:
1. The employee terminates the labor contract in accordance with the provisions of Article 38 of this Law.
2. The employer proposes to terminate the labor contract with the employee in accordance with the provisions of Article 36 of this Law, and has reached an agreement with the employee to terminate the labor contract.
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.
Economic compensation standard for layoffs
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.
References:
Baidu Encyclopedia-Labor Contract Law