According to Article 47 of the Labor Contract Law of People's Republic of China (PRC), economic compensation is paid to the workers according to the standard of one month's salary for each full year of work in the unit. For more than six months but less than one year, it shall be counted as one year; If it is less than six months, economic compensation of half a month's salary shall be paid to the workers.
Extended materials Article 1 This Law is formulated in order to improve the labor contract system, clarify the rights and obligations of both parties to the labor contract, protect the legitimate rights and interests of workers, and build and develop harmonious and stable labor relations.
Article 2 This Law is applicable to enterprises, individual economic organizations, private non-enterprise units and other organizations (hereinafter referred to as employers) in People's Republic of China (PRC) to establish labor relations with laborers and conclude, perform, modify, dissolve or terminate labor contracts.
State organs, institutions, social organizations and laborers who have established labor relations with them shall conclude, perform, modify, dissolve or terminate labor contracts in accordance with this Law.
Article 3 The conclusion of a labor contract shall follow the principles of legality, fairness, equality, voluntariness, consensus through consultation, honesty and credibility.
The labor contract concluded according to law is binding, and the employer and the employee shall perform the obligations stipulated in the labor contract.
Article 4 The employing unit shall establish and improve labor rules and regulations according to law, so as to ensure that laborers enjoy labor rights and perform labor obligations.
When an employing unit formulates, modifies or decides the rules and regulations or major issues directly related to the vital interests of workers, such as labor remuneration, working hours, rest and vacation, labor safety and hygiene, insurance and welfare, employee training, labor discipline and labor quota management, it shall discuss with the workers' congress or all employees, put forward plans and opinions, and negotiate with trade unions or employee representatives on an equal footing.
In the process of implementing rules and regulations and major issues, trade unions or employees have the right to propose to the employer and revise and improve them through consultation.
The employing unit shall publicize or inform the rules and regulations and major issues directly related to the vital interests of workers.
Baidu Encyclopedia-People's Republic of China (PRC) Labor Contract Law