Studies On Economic Cuts System

Economic cuts reflect the direct collision between enterprises' autonomy and right of labor. Our country is in the period of economic transition in which domestic enterprises are facing an intense competitive atmosphere at the present time. Coping with the competition, many companies reduce the cost by decreasing salary, shorting labor time, cutting employees to increase efficiency, which is the representation of enterprises' autonomy. The arbitrary use of economic cuts will do more harm to the labors'right because of their vulnerable position. What's more, it will cause a lot of unemployment and then affect the stable development of economy and the stability of society order. So it is necessary to regulate the institution of economic cuts in law. On the basis of Labor Law, Labor Contract Law passed in 2007 had some complements in the rules of economic cuts. But there still exists some place indistinct and need improvement.This paper is divided into four parts to stretch discussion and research on economic cutting institution in China. The first section illustrates the basic theory of economic cutting institution. It mainly defines the connotation of economic cuts. Also, it proves the rationality of economic cuts and the necessity to regulate economic cuts. In sectionâ…¡, it introduces the legislative patterns of economic cuts overseas and in Taiwan region, expecting to learn some experience of economic cutting institution through the instances and analyses of the legislative patterns aboard and in Taiwan. The third part focuses on the discussion of the success and failure of the current economic cutting institution in our country on the basis of combing the economic cutting institution's history and current situation. The last section puts forward legislative proposals to improve the institution of economic cuts. The author maintains to improve the institution of economic cuts through establishing the principle of proportionality, perfecting target choice criterion and the procedure of lying off employees, enhancing the security of those people who have been laid off and so on.