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Lawyer Guang Ningxian.
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Employees need to sign a labor contract with the employer according to law. Because some confidentiality agreements or employers need to train new employees, liquidated damages will be listed in the agreed terms of the contract. However, some employers do not sign contracts according to relevant laws and regulations, and the liquidated damages are unreasonably high. What if the liquidated damages agreed in the labor contract are too high? Bian Xiao will support you.
First, the meaning of liquidated damages
Liquidated damages are a certain amount of money agreed by the parties or directly stipulated by law, which is paid to the observant party when the defaulting party fails to perform the contract. According to relevant laws, liquidated damages can be divided into statutory liquidated damages and agreed liquidated damages. Statutory liquidated damages refer to the proportion or scope of liquidated damages stipulated by some laws and regulations; Agreed liquidated damages refer to the proportion or amount of liquidated damages voluntarily agreed by both parties when signing the contract. Starting from the legal consequences of liquidated damages, legal theorists divide liquidated damages into compensatory liquidated damages and punitive liquidated damages. The school that supports compensatory liquidated damages believes that liquidated damages are mainly to make up for the losses suffered by the observant party. Scholars who hold a punitive view believe that liquidated damages are mainly a kind of punishment agreed in advance by the breaching party to ensure the performance of the contract.
Second, the handling of excess liquidated damages
Paragraph 2 of Article 1 14 of the Contract Law stipulates: "If the agreed liquidated damages are lower than the losses caused, the parties may request the people's court or arbitration institution to increase them; If the agreed liquidated damages are excessively higher than the losses caused, the parties may request the people's court or arbitration institution to reduce them appropriately. "
On April 28th, 2003, the Supreme People's Court issued the Interpretation on Several Issues Concerning the Application of Law in the Trial of Commercial Housing Sales Contract Disputes. Article 16 of this interpretation stipulates: "If the parties request to reduce the agreed liquidated damages on the grounds that they are too high, they shall reduce them appropriately on the basis that the liquidated damages exceed 30% of the losses caused".
Three, in the case that the parties agree that the liquidated damages do not violate the law and cause obviously unfair, follow their agreement.
The first paragraph of Article 114 of the Contract Law stipulates: "The parties may agree that one party shall pay a certain amount of liquidated damages to the other party according to the breach of contract, and may also agree on the calculation method of the amount of compensation for losses caused by breach of contract." The expression of the parties' will is the core of contract law and the premise for the contract to be observed and performed. When the parties have agreed on the meaning of liquidated damages in advance, and the agreed proportion of liquidated damages does not violate the law and will not cause obvious unfairness, the agreement will take effect between the two parties, and the debtor should perform his debts in time to exempt or reduce his liability for breach of contract, instead of defaulting on the creditor's payment for a long time on the grounds that the original agreed liquidated damages are too high, which will cause the creditor's business difficulties. If we support the debtor's behavior of evading debts, it will encourage the defaulter's fluky psychology and cause a large number of defaults, which is not conducive to the formation of an honest business environment in the socialist market economy.
The above is how to deal with the situation that the labor contract price stipulated in Bian Xiao is too high. Through the above introduction, China has a more detailed agreement on liquidated damages. If we fail to comply with relevant laws and regulations and unreasonably raise excessive liquidated damages, we can appeal in accordance with relevant regulations. For more relevant knowledge, you can consult Xiaogan lawyer.
Extended reading:
Provisions on liability for breach of contract in the contract
Should I pay taxes on the liquidated damages? How much should I pay?
Is a contract without a liability clause for breach of contract invalid?