Layoff is the abbreviation of economic layoff, and it is the situation that the labor contract is terminated because of the employer. Refers to the employer's centralized dismissal of employees in accordance with the law within a specific statutory period. Enterprises that implement economic downsizing can reduce surplus staff due to changes in production and operation conditions.
Article 27 of the Labor Law of People's Republic of China (PRC) stipulates: "If the employing unit is on the verge of bankruptcy for legal rectification or has serious difficulties in production and operation, it should explain the situation to the trade union or all employees 30 days in advance, listen to the opinions of the trade union or employees, and report to the labor administrative department before it can reduce the number of employees. If the employing unit reduces its staff in accordance with the provisions of this article and recruits staff within six months, it shall give priority to the retrenched staff. " The "report" here only means explanation, not approval. "Priority employment" means giving priority to employment under the same conditions.
There are two statutory conditions for employers to make economic layoffs. As long as one of them is met, economic layoffs can be implemented:
First, due to serious difficulties in production and operation, he was on the verge of bankruptcy and was declared by the people's court to enter the legal rectification period. "Statutory reorganization period" refers to a re-established bankruptcy system in which an enterprise adjusts its debts and reorganizes the enterprise according to the bankruptcy procedures of People's Republic of China (PRC) Bankruptcy Law and Civil Procedure Law, so as to restore its ability to pay off debts. If the enterprise is poorly managed and it is difficult to pay off the debts due, the creditors may apply for bankruptcy. If the enterprise only encounters temporary difficulties and can recover its solvency after a period of operation, the enterprise can reach a settlement agreement with the creditors, and the court will announce that it will enter a period of rectification. In our country, rectification is proposed and presided over by the higher authorities of enterprises that have applied for bankruptcy. If the enterprise still cannot pay off its debts at the end of the rectification period, the court will declare the enterprise bankrupt. "Entering the period of legal rectification" shows that it is very difficult for enterprises to operate.
Second, there are serious difficulties in production and operation, and it is really necessary to lay off employees to meet the standards of enterprises with serious difficulties set by the local government.
Layoff is a centralized dismissal of employees, so some conditions for terminating the labor contract with employees are not applicable. At the same time, because layoffs often involve a large area, the procedures are strictly limited by law.
The above is the relevant knowledge I have compiled for you. I believe you have a general understanding through the above knowledge.