Discussion And Research On The Economic Compensation System

The labor relationship between the employer and the employee beingmore and more tense has affected the construction of the harmoniouslabor relationship. No harmonious labor relationship, no entirelyharmonious society. Labor legislation of our country lays particularemphasis on establishing the stable harmonious labor relationship.The Labor Contract Law newly passed establishes the legislativeobjective to incline to protect workers in order to rectify thestrength difference between the employer and the employee, and thenform the substantively balanceable interest pattern. Simultaneously,the Labor Contact Law also pays great attention to protect thelegitimate rights and interests of the work units. A series ofsystems including economic compensation are the instruments andreflections of rectification and balance. The economic compensationis a unique and independent system to compensate the termination of a labor contract in the labor law, and also fully manifests theprinciple and objective to incline to protect workers.The economic compensation system is the main body of this thesiswhich is divided into five chapters besides the conclusion.In the first chapter, the background and the meaning of researchon economic compensation system, the outline of main legal materials,the content, the research method and explanation of keywords isfirstly introduced. The economic compensation is frequently confusedwith compensation and liquidated damages. On the basis of analyzingcompensation and liquidated damages, I elaborate their differencesand whether they can be simultaneously applied or not.In the second chapter, I analyze the stipulation of our country onthe payment situation and the standard of the economic compensationand two regional legislation tendencies ---promotion and reduction,as well as the stipulation in Hong-Kong, Macao and Taiwan. I discussthe nature of economic compensation while I find out the problemsexisting in State's stipulation and putting forward correspondingcountermeasures. With the comparative research method, I carefullyanalyze the Continent law system, the Anglo-American law system andthe stipulation of other countries to find out the hard problemsimplying in the legal rules and compare them with ours.In the third chapter, I carefully discuss the payment situationsof the economic compensation and to make them clearer and moresuccinct, I prove them with a form. One of the highlight of the LaborContract Law is to stipulate that the economic compensation should beconditionally paid when terminating a labor contract, which ishelpful in the solving short-term labor contract problem. I deeplyresearch on the stipulation that economic compensation should be paidwhen agree upon non-competition provisions and propose that the limitation of liquidated damages should be stipulated. Theretroactivity of the economic compensation concerns the worker'svital interests and we should pay more attention on it.In the fourth chapter, I elaborate such difficult problems ofpaying economic compensation as the formula, length of service,monthly salary, whether levy taxes or not, and so on.The fifth chapter is about solving the disputes on paying theeconomic compensation. The settlement mechanism of China's labordisputes is"one mediation, one arbitration and two adjudications",which is also suitable to some economic compensation disputes.Last but not least, I believe that the economic compensationsystem is the sharp weapon to protect general workers. The LaborContract Law has solved the problems existing in practice thatinfringe the rights and interests of workers. In order to strengthenthe effect of inclinable protection, we should stipulate feasiblelegislation related and perfect the economic compensation system, tomake which truly become the"golden cudgel"of general workers andthe"hoop-tightening incantation"of work units.