Research On The System Of Economic Compensation

With the means of production separating form the free laborers gradually, employment relationship becomes the indirect link of combination between part of laborers and the means of production. At the meanwhile, it created the two major interest groups: the employees (workers) and the employers ( employment units). In the interests of maintaining groups'interests, Labor Law continuously adjusts the score of protection. The modern Labor Law goes along the idea which is to form a situation of keeping the interest substantive balance, by leaning to the workers in minor situations and amending the difference of strength between two groups. A series of systems including economic compensation, form the instrument and performance of the amendment and balance. This article makes the research basing on the economic compensation payment resulting from the termination of labor relations. The paper includes four parts:In the first part, there is the outline of the economic compensation system. According to the current legislation, it gives an outline of the structure of economic compensation contents, and points that there are two mistakes in legislation: one is the chaos in the definition of economic compensation and economic repayment, another is the neglect of taking the termination of labor relations as the premise of the actual payment for economic compensation. To be directed against the "three theories" -- contributions compensation theory, repayment theory and social security theory, the nature of economic compensation is re-positioning as the nature of unilateral legal obligations of the employment units, compensation for the loss of workers expectant benefits, but not the nature of the payment of social security and default. That differs from the "three theories" that in the dispute.