Legal basis: Article 41 of People's Republic of China (PRC) Labor Contract Law is under any of the following circumstances. Need to lay off more than 20 people or less than 20 people, but accounting for more than 10% of the total number of employees in the enterprise, the employer shall explain the situation to the trade union or all employees 30 days in advance, and after listening to the opinions of the trade union or employees, it can report the layoff plan to the labor administrative department:
1, reorganized in accordance with the provisions of the enterprise bankruptcy law;
2. Serious difficulties in production and operation;
3, enterprise production, major technological innovation or operation 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.
When reducing personnel, priority should be given to retaining the following personnel:
1. Concludes a long-term fixed-term labor contract with this unit;
2. Conclude an open-ended labor contract with this unit;
There are no other employees at home, and there are elderly people or minors who need to be supported.
If the employing unit reduces its staff in accordance with the provisions of the first paragraph of this article and recruits staff again within six months, it shall notify the retrenched staff and give priority to the retrenched staff under the same conditions.