2. Legal basis: People's Republic of China (PRC) Labor Contract Law.
Article 40 Under any of the following circumstances, the employer may terminate the labor contract after notifying the employee in writing 30 days in advance or paying the employee an extra month's salary:
(1) The employee is sick or injured outside work, and after the prescribed medical treatment period expires, he can't engage in the original work or other work arranged by the employer;
(two) the laborer is not competent for the job, and he is still not competent for the job after training or adjusting his post;
(3) The objective conditions on which the labor contract was concluded have changed greatly, which makes it impossible to perform the labor contract, and the employer and the employee cannot reach an agreement on changing the contents of the labor contract through consultation.
Article 46 Under any of the following circumstances, the employing unit shall pay economic compensation to the workers:
(3) The employer terminates the labor contract in accordance with the provisions of Article 40 of this Law.
Forty-seventh 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.