On Legal Restrictions Over Structural Redundancy In Merger And Acquisition

During the economic conversion period in China, facing a fierce competitiveenvironment, domestic enterprises expanded their scales by industrial conformity, onthe other hand, they improve the work efficiency by intensification of input in humanresource, so that merger and acquisition and redundancy became necessary steps inthe development of Chinese enterprises. Redundancy is an important expression of themanagerial decision making power of enterprises. However, based on the situationthat the laborers being in an inferior status and the social security system needing tobe finalized, proper legal measures must be taken to limit the redundancy .Redundancy represents the conflict between the managerial decision- makingpower of enterprises and the labor right for employees. The redundancy in the pastlegislation practice is limited to economic redundancy while structural redundancy isfirstly included in law of labor contract. Different patterns should be built to balancethe right conflict in different kinds of redundancy. Seen from the actual running ofdomestic enterprises, merger and acquisition is the most important basic reason ofstructural redundancy. Therefore, it was made the research focus that the structuralredundancy in merger and acquisition.In the first chapter, combined with the macroeconomics background in ourcountry and the developmental stage of domestic enterprises, the article indicates theconflict between legal theory and social practice. The second chapter introduces themeaning of merger and acquisition and redundancy, analyzes the reasons of thestructural redundancy in merger and acquisition, and come to the conclusion that thestructural redundancy in merger and acquisition is a game between the right ofdevelopment for enterprise and labor right for employee. Then, in the third chapter,we make a comparative research on international relevant legislative in order to learnexperience to the structural redundancy in merger and acquisition in domesticenterprises based on that it indicates the evolution and the problems of legislationpractice in our country of the structural redundancy in merger and acquisition. At last,based on affirming the validity of the structural redundancy in merger and acquisition,it analyzes the necessity to make legal limitation for the structural redundancy in merger and acquisition, and indicates some specific suggestions, in order to balancethe right of development for enterprise and labor right for employee.