With the deepening of the reform of China's socialist market economic system, the importance and complexity of labor relations in Chinese enterprises have become increasingly prominent. The disharmony of labor relations in enterprises not only affects the income of workers and the loyalty of employees to enterprises, but also affects the survival, development and social stability of enterprises. The strike and collective resignation caused by the disharmony of labor relations in enterprises will undoubtedly bring unnecessary and incalculable losses to enterprises.
At present, due to the imperfect management system of enterprise labor relations in China, the phenomenon that the rights and interests of workers in China have been violated frequently, the contradiction between the two sides of enterprise labor relations has been intensified, and the number of labor dispute cases has increased greatly. Only by establishing harmonious enterprise labor relations can we maximize the labor quality and efficiency of enterprises and create the material and cultural foundation needed to build a harmonious society. From the perspective of human resource management, only by establishing harmonious enterprise labor relations can we stimulate the enthusiasm of employees and improve their loyalty to enterprises.
Labor-capital relationship is a key to solve social relations under the condition of market economy. Balancing labor relations and protecting workers' human rights are difficult problems that all governments in market economy countries must solve. Labor relations have the nature of administrative subordination, which makes workers in a relatively weak position and difficult to compete with employers in the labor market; Workers have made great contributions to economic and social development through hard work, but there is a serious imbalance between what they pay and what they deserve. Therefore, modern international and domestic labor laws are generally based on the protection of workers' rights and interests, so as to achieve the effect of balancing labor relations and protecting workers' human rights.
In the current social state of "labor-capital imbalance" in China, the basic human rights granted to workers by the Constitution are often not effectively implemented and guaranteed. In this case, a large number of labor disputes have arisen, which can not be solved through other relief channels, and finally squeezed into the "last safety valve" judicial relief door.
First, the analysis of the current situation of labor disputes in China
Generally speaking, according to the statistical data of 2005, the current labor disputes in China have the following characteristics:
5. Labor remuneration, insurance benefits and cases of dissolving labor contracts are still the focus of labor dispute cases.
Labor remuneration and insurance benefits are the main factors that cause labor dispute cases. In 2005, the number of labor remuneration and insurance and welfare disputes was the largest, with1030,000 and1020,000 respectively. These two types of cases accounted for 33% and 32% of the total cases accepted in that year respectively. In the past three years, the number of labor dispute cases in terms of insurance benefits and labor remuneration accounted for more than 60% of the total number of cases in that year. Labor remuneration and insurance benefits have been the main causes of labor disputes for several years. Among them, wage arrears still account for a high proportion in labor remuneration disputes.
Disputes over the termination of labor contracts are increasing. In 2005, 55,000 labor contract disputes were dissolved, accounting for 17.5% of all cases accepted. In recent years, the dissolution of labor contract disputes is on the rise, accounting for 65.9% of all labor contract disputes in 2002, 68.9% in 2003, 70.5% in 2004 and 7 1.8% in 2005. This shows that the current labor contract dispute is basically a labor contract dissolution dispute, and it also shows that due to the increase of enterprise restructuring at this stage, the performance of the labor contract has been greatly affected, leading to the early termination of the labor contract by both parties in labor relations.
Second, the necessity of signing a labor contract
From 1997 to 2003, the number of labor dispute cases in China rose sharply from 7 1524 to 22,6391,an increase of nearly 2.2 times in six years. Before 2000, labor dispute cases in state-owned enterprises rose rapidly. After 2000, with the gradual completion of the restructuring of state-owned enterprises, non-public enterprises gradually became the key departments where labor dispute cases occurred.
According to the statistical data of China Labor Statistics Yearbook, the number of labor dispute cases accepted by labor dispute arbitration committees at all levels in China increased from 7327 in 1997 to 45098 in 2004, showing a rapid upward trend. Among them, 2004 increased by 43% compared with the previous year, which is worthy of attention. In addition, in 2004, the number of labor dispute cases accepted by private enterprises accounted for 17.3% of similar cases in the whole society.
The possible causes of labor dispute cases in private enterprises include the performance, alteration, dissolution and termination of labor contracts. In 2002, the main cause of labor disputes in private enterprises was the performance of labor contracts, accounting for 78.3% of all labor dispute cases, reaching 306 18. The dissolution of labor contracts and other aspects involving the basic rights and interests of workers are also important reasons for disputes.
The performance of the labor contract includes four aspects, namely, labor remuneration, insurance and welfare, work injury and vocational training. According to the data in 2002, the number of cases caused by labor remuneration, insurance benefits, work-related injuries and vocational training were 65,438+0,265,438+0,69,5,502,6,226 and 95 respectively. Labor remuneration is the main reason for disputes in the performance of labor contracts, and insurance benefits and work-related injuries are also important reasons for disputes in the performance of contracts. Therefore, the causes of labor disputes in private enterprises in China are concentrated in four aspects: labor remuneration, work injury, insurance and welfare, and termination of labor contracts.
According to the national labor force sampling survey in 2003, a considerable number of private enterprises do not sign labor contracts, and the signing rate of labor contracts is low, which cannot provide legal protection for the protection of workers' rights and interests. The national labor contract signing rate is only 57. 1%, of which the private enterprise labor contract signing rate is only 30.5%. In Guangzhou, where the private economy is developed, the labor contract signing rate of employees of state-owned enterprises is about 99%, that of Sino-foreign joint ventures is 85%, and that of private enterprises is only 40%.
As mentioned above, the lack of labor contract system not only makes labor relations in a disorderly state, but also makes it difficult to protect the basic rights and interests of employees endowed by law.
Clearly stipulating the labor rights and obligations between workers and employers in the labor contract is both a guarantee and a constraint for both parties, which is conducive to avoiding or reducing labor disputes. At the same time, once a labor dispute occurs, the labor contract is also the main basis for both parties to claim their rights. Therefore, it is necessary to establish a perfect labor contract system.
Thirdly, legislation of labor contract.
A labor contract is an agreement between a laborer and an employer to establish a labor relationship and clarify the rights and obligations of both parties. In the early legislation of western industrialized countries, the labor law belongs to the adjustment scope of civil law, and the principle of freedom of contract applies. The French Civil Code 1804 has special labor contract clauses, which are called "labor lease contracts". Under the influence of this code, many countries, such as Italy in Europe, Canada in America and Japan in Asia, have listed labor contracts as the contents of their civil codes.
In the 20th century, due to the need of state intervention in labor contracts and coordination of labor relations, labor contracts were transferred from civil law to labor law. Belgium promulgated the Labor Contract Law in March 1900, and legislated from the perspective of labor contract. The first volume of the Labor Law promulgated by France 19 10 lists the employment contract as the second item. Since then, many countries have incorporated labor contracts into the scope of labor legislation.
There are three modes of modern labor contracts: (1) labor contracts are listed as a chapter or an article in basic labor laws such as Labor Law, such as France, Japan and Canada; (2) Formulate special labor contract laws and regulations, such as Italy and Belgium; (3) A few countries still follow the contract law of civil law system, or there are precedents to regulate labor contracts according to common law, such as Britain and the United States.
Since the founding of the People's Republic of China, labor contract legislation has always been an important part of labor legislation. The Measures for the Registration of the Introduced Unemployed Technology formulated by the Ministry of Labor 1950, the Interim Measures for Recruiting Workers in Various Places formulated by 195 1 and the Measures for Recruiting Foreign Construction Workers by Construction Engineering Units 1954 all require the establishment of labor contract relations. However, with the widespread implementation of the fixed-term employment system, labor contracts are only signed between temporary workers and employers. It was not until the early 1980s that there was a breakthrough in labor contract legislation, during which a large number of provisions on labor contracts were promulgated, such as 1980 Provisions on Labor Management of Sino-foreign Joint Ventures issued by the State Council, 1986 Interim Provisions on the Implementation of Labor Contract System in State-owned Enterprises issued by the State Council, and 1993 Interim Measures on Labor Wage Management of Joint-stock Pilot Enterprises.
In the process of labor legislation, the People's Republic of China (PRC) Labor Law, which came into effect on 1995 65438+ 10/day, is of great significance. This law systematically stipulates the definition, scope of application, content, alteration, dissolution and termination of labor contracts and their legal application, which lays a legal foundation for establishing a unified labor contract system.
The Labor Law comprehensively covers the provisions of the labor contract system. However, since the Labor Law is only a basic law in the field of labor, all the chapters set by this law need to be adjusted in detail through specific legal provisions. Therefore, it is very necessary to formulate a labor contract law to systematically and specially adjust the whole process of the establishment and dissolution of labor contracts. In order to cooperate with the implementation of the labor contract system in the labor law, the Ministry of Labor has also formulated the Measures for Economic Compensation for Violation and Termination of Labor Contracts and the Measures for Compensation for Violation of Labor Contracts in the Labor Law.
In order to adjust labor relations more clearly, the voice of formulating labor contract law is getting higher and higher.
On February 24th, 2005, the draft labor contract law was submitted to the 19th meeting of the 10th NPC Standing Committee for deliberation. On March 20, 2006, the draft labor contract law was publicly solicited for comments. This law, which concerns the vital interests of hundreds of millions of people, has become the focus of social attention. In the process of legislative investigation, drafting and deliberation of the Labor Contract Law, employers and employees launched a tit-for-tat legislative game from the legislative purpose to the specific provisions, and received the open legislative opinion 19 1849, which aroused very wide social concern and strong response.
On February 24th, 2006, 65,438 draft labor contract law, which fully absorbed opinions from all sides and made substantial amendments, was submitted to the 25th meeting of the National People's Congress Standing Committee (NPCSC) for the second trial. According to the legislative procedure, the draft entered the third trial.
On June 29th, 2007, the 28th meeting of the 10th the National People's Congress Standing Committee (NPCSC) passed the Labor Contract Law by a high vote. This law, which has attracted much attention, finally appeared in front of people after being published to the public for comments and four deliberations, and will be implemented on June 65438+ 10/day, 2008.
Fourthly, the practical significance of labor contract is viewed from the perspective of contract.
As long as a relationship is established between people, there will be some kind of contract.
Contracts are commonly known as contracts or agreements. Article11kloc-0/of the French Civil Code (Napoleonic Code) defines a contract as: "A contract is an agreement, according to which one person or several people are liable to others for payment, action or omission." Later, the development of the contract system made its meaning more extensive. On the commercial or economic level, it is a socially recognized way of property right transfer; On the moral and ethical level, it is the embodiment of the moral principle that a person should abide by his own agreement and fulfill his promise; On the political level, contract has become a legal form linking the government and the people.
Legally speaking, a contract refers to "a legally binding agreement between two or more parties, or a set of legally binding commitments by more than one party." Starting from this concept, it is not difficult to analyze the structural elements it contains:
First, the concept of "contract" refers to multiple contracting parties or parties, and the subject of a contract is two or more parties;
Second, the concept of "contract" means a certain purpose and reciprocity, that is to say, the contract must have a certain purpose. The conclusion of a contract is to pursue certain interests or goodness, and the realization of the purpose is the realization of mutual benefit;
Third, the concept of "contract" refers to a certain degree of agreement and a certain form of commitment, that is, agreement and consent. This agreement can be the opposite or the same direction, and commitment is the core and essence of the contract. Only commitment can make the agreement meaningful and the contract finally established.
Fourth, the concept of "contract" means binding force, obligation and responsibility. The contract in the legal concept has obvious legal binding force, and the realization of this responsibility and obligation mainly depends on the law.
As can be seen from the definition of contract, the contract clarifies the rights and obligations of both parties and the liability for breach of contract, which is a constraint on the future behavior of both parties and reduces uncertainty. Moreover, the contract itself has strict regulations or terms. Therefore, the contract will have specific constraints on the organization and its employees, standardize the behavior of both parties and promote the realization of organizational goals, which is one of the key elements in the employment relationship.
Five, the main problems existing in the implementation of China's labor contract system
1. The signing rate of labor contracts is low, and the legitimate rights and interests of workers cannot be effectively protected when labor disputes occur.
According to the national labor force sampling survey in 2003, a considerable number of private enterprises do not sign labor contracts, and the signing rate of labor contracts is low, which cannot provide legal protection for the protection of workers' rights and interests. The national labor contract signing rate is only 57. 1%, of which the private enterprise labor contract signing rate is only 30.5%. In Guangzhou, where the private economy is developed, the labor contract signing rate of employees of state-owned enterprises is about 99%, that of Sino-foreign joint ventures is 85%, and that of private enterprises is only 40%. According to the statistics of sampling survey in 2004, the average signing rate of labor contracts of employees in the unit decreased by nearly 10 percentage point compared with 2002. Especially in the construction industry and catering service industry, the signing rate of labor contracts is relatively low, about 40%, about 30% for migrant workers and less than 20% for small and medium-sized non-public enterprises. The employer has not signed a written labor contract with the employee, which makes it difficult to confirm whether there is a labor relationship between the two parties, and the employee's rights based on and related to labor relations, such as wages and remuneration, the right to participate in trade union organizations and collective bargaining, the right to terminate the contract, and the right to social insurance, cannot be effectively guaranteed. In 2005, in the inspection of labor law enforcement in the National People's Congress Standing Committee (NPCSC), it was found that the signing rate of labor contracts for small and medium-sized enterprises and non-public enterprises in some places was still less than 20%, and the signing rate of individual economic organizations was even lower. Some enterprises only sign labor contracts with managers and technicians, not front-line workers.
The reasons for the low signing rate of labor contracts are very complicated. Many employers are reluctant to sign labor contracts, mainly to reduce labor costs.
So after signing the labor contract, how much cost does a laborer add to the enterprise? There are mainly the following three aspects.
Take an enterprise in Nanjing as an example, which does not pay five insurances for employees, dismisses employees without economic compensation and takes paid vacations.
In terms of social insurance, according to the regulations of Nanjing, the minimum payment base of social insurance paid by enterprises for employees is 1 189 yuan per month, and the five insurances of pension, unemployment, maternity, work injury and medical insurance total 536.73 yuan per person per month, of which 140.79 yuan is borne by individuals, and the enterprise pays 395.94 yuan per employee per month.
Enterprises need to give financial compensation to employees when dismissing them. The labor contract signed between the enterprise and the employee expires and it is necessary to terminate the labor relationship. Enterprises need to pay economic compensation to employees. The economic compensation shall be paid according to the number of years the laborer has worked in this unit, and one month's salary shall be paid for each full year. If it is less than one year, it shall be counted as one year. In other words, in fact, the annual salary paid by enterprises to employees is not 12 months, but 13 months. Calculated by 850 yuan, the minimum wage standard for employees in Nanjing, enterprises should pay more 850 yuan every year.
Regarding compulsory paid leave, employees who have worked in the enterprise for more than 1 year but less than 10 year must take paid leave for 5 days, otherwise they will have to pay overtime pay at three times their salary. The enterprise's expenditure on this project is: annual working days: 365 days-104 days (rest days)-1 1 day (legal holidays) = 250 days; According to this calculation, the actual working day per month is 20.83 days. According to the minimum wage standard of 850 yuan, the wage per working day is 40.8 yuan. If employees are not allowed to take paid vacations, the enterprise will pay employees 6 12 yuan every year.
For the above three items, the enterprise pays 62 14 yuan for each employee every year. According to the minimum wage in Nanjing, the labor cost of enterprises has increased by 6 1%.
Some workers are afraid to sign labor contracts, mainly because they are in a weak position in the case of oversupply in the labor market.
2. The labor contract is short-term and the labor relationship is unstable.
According to relevant surveys, by 2005, the duration of national labor contracts will be mainly short-term contracts, of which about 60% will be under 3 years; Only 20% people have signed open-ended contracts. In order to reduce the cost of dismissal, many employers prefer to sign short-term labor contracts with workers year after year rather than long-term labor contracts with workers. This situation, to a certain extent, affects the stability of labor relations, and also greatly affects employees' sense of occupational stability and sense of belonging to the enterprise, which adversely affects the enthusiasm and career planning of the enterprise for long-term service, and the long-term development and social stability of the enterprise.
The main reason for the short-term labor contract is that the employer tries to choose the workers as freely as possible through the short-term labor contract and reduce the economic compensation that should be paid to the workers because of the termination of the labor contract. Some enterprises take advantage of the most energetic "adolescence" of workers at the lowest labor cost. This situation not only damages the legitimate rights and interests of workers, but also affects their sense of occupational stability and sense of belonging to the enterprise, and affects their enthusiasm for serving the enterprise for a long time. Facts have proved that short-term labor contracts will not only harm the legitimate rights and interests of workers, but also affect the development of enterprises themselves.
3. Employers use their strong position in labor relations to infringe upon the legitimate rights and interests of workers.
In the context of oversupply in the labor market, employers often use their strong position in labor relations to infringe on the legitimate rights and interests of workers. Some employers abuse the probation period, taking the employee's failure to meet the employment conditions during the probation period as the "reason" and refusing to hire after the probation period expires; Some employers evade their legal obligations to workers by setting a longer probation period; Some employers violate laws and regulations, default or deduct workers' wages, and fail to pay social insurance premiums according to state regulations; Some employers do not implement labor quota standards, extend working hours at will, and do not pay overtime wages; Some employers even force workers to work; Some employers arbitrarily set liquidated damages, which restricted the freedom of workers to choose jobs and the reasonable flow of labor, resulting in serious violations of the legitimate rights and interests of workers. The above problems have seriously affected the harmony and stability of labor relations. In recent years, labor dispute cases and mass incidents caused by labor disputes are on the rise. According to the statistics of the Ministry of Labor and Social Security, from 2006 1995 to 12, the number of labor dispute cases increased by 13.5 times and the number of collective labor dispute cases increased by 5.4 times. Therefore, it is urgent to formulate the labor contract law, improve the labor contract system and reasonably standardize labor relations on the basis of summarizing the practical experience since the implementation of the labor law.
4. Lack of legislation on collective contracts.
Since the promulgation and implementation of 1995 "Labor Law", the collective contract system has developed rapidly in China with the promotion of the All-China Federation of Trade Unions. By the end of 2003, a total of 672,900 collective contracts had been signed nationwide, covering enterprises1214,000 and employees103.5 million. Among them, the enterprise signed 537,400 contracts alone, covering 67,066,700 employees. Among them, there are 0/86,700 public enterprises and 46.683 million employees; There are 273,200 non-public enterprises with12.93 million employees. Signed regional industrial collective contracts 135400, covering 676700 enterprises and employing 364 16000 people. Among them, 95,200 regional collective contracts were signed, covering 542,700 enterprises and 23,988+0.600 employees; Signed 40,200 industrial collective contracts, covering 6,543,800 enterprises and 6,543,800 employees. There are 293 1000 enterprises in China that carry out collective wage negotiations and sign special collective wage agreements, covering 35.79 million employees. 5062 tripartite coordination mechanisms at all levels have been established nationwide.
However, with the implementation of the collective contract system in China, the problems in legislation are gradually exposed. These problems include: (1) The legislative level of rules is low, and it lacks legal authority. (2) the legal provisions are scattered, too principled, lack of operability, and the provisions between laws are inconsistent. (3) The scope of implementation of the collective contract is too narrow, and there is no industry or industry or regional collective contract. China's provisions on collective contracts are still at the enterprise level, and there are no provisions on regional and industrial collective contracts. Although some places have tried this in recent years, there is no corresponding legal basis. (4) There is no clear responsibility for collective negotiation and signing collective contracts.
The urgency and practical significance of the introduction of the intransitive verb "Labor Contract Law"
As can be seen from the above, the Labor Law of People's Republic of China (PRC) (hereinafter referred to as the Labor Law), which came into effect in 0995+ 1 year 65438+65438, has the provision of 17 in Chapter III "Labor Contracts and Collective Contracts", but it is regarded as a future labor contract. Because the legislation on labor contract in the Labor Law is too principled, and the Labor Contract Law has not been promulgated in time, the central government departments have promulgated many departmental rules and related policies to adjust many problems in real labor relations. Most of these rules and regulations are practical summaries in the implementation of the labor contract system, but their effectiveness is limited to the business scope of the labor administrative department. In the process of litigation, the effectiveness of the court is often questioned; In order to solve judicial problems in various places, the Ministry of Labor has a large number of "answers" and "notices", and their effectiveness is also low; Various localities have also enacted laws, the contents of which are far beyond the scope stipulated in the labor law, and some of them are not standardized. Based on this, it is necessary to summarize the problems that have occurred since the implementation of the labor law, sort out the existing regulations and formulate a special labor contract law.
The Labor Contract Law was finally implemented as scheduled on June 65438+ 10/day, 2008. Its introduction has its inevitability and far-reaching significance.
First of all, the strategic thinking formulated by the current central government is to adhere to sustainable development, build a harmonious society, pay attention to social equity and solve social and people's livelihood problems. The "Labor Law" promulgated by 1994 has some shortcomings in the design of labor contract system and the investigation of legal responsibility, and its scope of application is relatively narrow. After all, there were not so many forms of employment in China in the early 1990s. For example, labor contracting and labor dispatch companies, although not protected by labor law, are the main units that employ bottom-level workers.
Secondly, considering the overall economic development, the government hopes to stimulate domestic demand and change the state of over-reliance on exports. However, while China's GDP is growing at a high speed, the proportion of workers' wages in GDP is declining year by year. In India, which is also a developing country, the wages of manufacturing workers are twice that of China.
In addition, the country hopes to change the current situation that economic competitiveness relies too much on low labor costs, improve the industrial level, and change the current situation that China manufacturing enterprises are always in the lowest profit link in the global industrial chain.
Seven, the impact of the implementation of the "labor contract law"
The employer's "increase in labor costs" is "complaining"
The legislative purpose of the Labor Contract Law is to establish harmonious and stable labor relations. From a realistic point of view, after the implementation of the Labor Contract Law, we have seen the joy of workers, and also heard some employers' "increasing labor costs" and "complaining bitterly". The Labor Contract Law has been officially implemented for less than half a month. However, before this, nearly half a year's start-up stage of the draft has given China enterprises enough time to think and respond. Some people who re-signed the contract to circumvent the new law, such as Wal-Mart, claimed that the company could not keep up with or even surpass the new law, such as Vanke, and they rushed to the decision-making department, such as Fujitsu, and closed down.
According to an interview with China Entrepreneur, many interviewed entrepreneurs estimate that under the Labor Contract Law, enterprises will generally face a 5%-40% wage cost increase. It is obviously those labor-intensive enterprises and small and medium-sized enterprises that feel the greatest pressure.
The standards of dismissal compensation, overtime compensation and paid vacation compensation involved in the Labor Contract Law are directly linked to the employee's salary, which makes the concept of "employee's salary" have room for deliberation and revision. The concepts of one-time salary and annual salary were decisively abandoned, and the payroll of "salary consists of basic salary and various subsidies and bonuses" returned in the planned economy era. Nearly 10 entrepreneurs in the Yangtze River Delta interviewed almost all revised their employees' salaries. It is the story of "chop and change". The total salary remains the same, but obviously only part of it is the basic salary and the rest is overtime. Ling Lanfang, chairman of the Silk Road in Huzhou, Zhejiang, told reporters frankly that workers who work six days a week don't have to worry about overtime pay. Wang Licheng, chairman of Hanghuali Group, also readjusted the salary tables of the four companies under the group, and the basic salary from the bottom employees to the management each accounted for 70%-30% of the original total salary. "Dismissal compensation, overtime and paid vacation are all multiples of basic salary. I can't say that my bonus subsidy to employees should be doubled to compensate employees. " It is understood that employees can understand this adjustment.
Paid annual leave, which is regarded as "natural" by foreign companies in big cities, is still difficult to be understood and accepted by most manufacturers in the Yangtze River Delta. Enterprises that focus on foreign trade are under greater pressure: "What if the list comes and you hate yourself for not finishing it in one day?" In an interview with reporters, the vice chairman of Langsha Socks, a listed company located in Yiwu, Zhejiang Province, said that the solution he came up with was to work overtime in the peak season (when there are many export orders) and take turns taking vacations in the off-season. "My boiler and generator are working continuously. Everyone is taking annual leave, and my business is in chaos. " Silk Road Ling Lanfang came up with the idea of "breaking the whole into parts": "Break up 15 days of annual leave and put them together with other holidays. For example, if I have a three-day National Day holiday, I will have seven days. In addition, at the highest temperature, the whole factory has a week off. This explains 15. "
For enterprises engaged in simple service industries, employee insurance is likely to be "unbearable". Tao Xiaoying, general manager of Sanwei Group, the largest domestic service company in Hangzhou, calculated an account. A nanny's monthly salary 1.200 yuan, 10% is 1.20 yuan. If the company wants to pay more than 300 yuan for her insurance, the nanny has to pay more than 200 yuan. "In order to pay more than 300 yuan of insurance for employees, can I raise the nanny's monthly salary to 3,000 yuan? Who can accept such a high nanny salary? " Moreover, even if the enterprise is willing to insure its employees, the employees are ungrateful. Most migrant workers are reluctant to give part of their wages to the cities that are leaving. For such employees, under the requirements of the labor contract law, enterprises need to do the work of employees and persuade employees to agree to take out insurance. "If you really don't want insurance, sign a written contract to prove that the enterprise has paid the insurance that should be paid to employees." Tao Xiaoying said. Now, Shanghai has issued a policy to give insurance subsidies to service companies, precisely out of concern for the plight of such companies.
As for the "open-ended contract", which is the biggest headache for business owners, most enterprises are now holding a wait-and-see attitude, because Huawei's method of evading "open-ended contract" by "letting employees resign and sign new contracts" has been officially stopped and declared invalid. They said that they would stop "employees joining the company 10 year" and "employees signing fixed-term contracts for the second time". Jeremy, chairman of Juli Precision Equipment Manufacturing (Dongguan) Co., Ltd. said, "We have a principle in doing business, and we can't invite those who can't be fired. Isn't the current open-ended contract asking us to violate this point? I'll tell the personnel department not to consider people in their forties and fifties in the future. Is this to promote employment or reduce employment? "
Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.