Legal basis: People's Republic of China (PRC) Labor Contract Law.
Article 44 A labor contract shall be terminated under any of the following circumstances: (1) The labor contract expires; (two) workers began to enjoy the basic old-age insurance benefits according to law; (3) The laborer dies, or is declared dead or missing by the people's court; (4) The employing unit is declared bankrupt according to law; (5) The business license of the employing unit is revoked, ordered to close down or revoked, or the employing unit decides to dissolve in advance; (6) 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.