Analysis Of Ms. Wang V. Kimberly Company Layoffs Case

In recent years, labor disputes and litigation regularly occur because of theredundancies. In cases, if the whole sentence is scientific is decided by theappropriate application of the law. The key point of this case lies in that if the actionof the kimberlycompany changing employee’s post unilaterally belongs to recruitmentautonomy or to illegal disguised layoffs. The court didn’t accept the claims becausethey thought justice should not interfere with the internal behavior of enterprises.Then the case will make negative effects on the society, that’s disguised layoffs willbecome a common phenomenon in the process of enterprise management. As avulnerable group, employees’ legal rights will not be able to get effective protection.Employers have rights to employ or dismiss employees, but the rights should bewithin the limits of the law, that is to say layoffs should be conducted on the premiseof law, by performing proper procedures, and correct amount of economiccompensation should be paid. If employers want to change employees’ position, firstof all, there should exist two legal conditions, the one is that employees are notcompetent for their post; the other is that the environment has changed and leaves thelabor contracts unfulfilled; Secondly, employers should perform legal procedures, i.e.,employers should consult employees about the change of their posts and finally theygain employers’ agreement on the change. Otherwise, the change is invalid. So ifemployees fail to perform the transfer order, employers cannot terminate the laborcontracts with employees on the excuse of employees’ automatic resignation.Otherwise, employers are said to discharge the labor contracts illegally. According toregulations of labor contract law, employers should pay employees damagecompensation because of illegal discharge, the amount is as twice as that of economiccompensation. Also a scientific analysis should be given on how to calculate theamount of economic compensation. Attention should be paid to the watershed of year2008. Before2008, the economic compensation should follow the regulations of thelaw of the People’s Republic of China labor law. Two conditions will lead to the sealdefinition of twelve years, the one is that both sides agree to discharge their laborcontract; the other is that employee is not competent for his or her job and stillincompetent after training. Otherwise the economic compensation should be paidaccording to employees’ actual length of their working years. After2008, the economic compensation should be in accordance with regulations of labor contractlaw i.e.3times+the seal definition of twelve years. When the employees’ salary ishigher than3times salary of per capita salary last year in the region in which theenterprises lie in, they should be paid according to the standard of3times, andmultiply by the actual working years, but the length should be no more than12years.Only by using rights legally and by institutionalization and humanization in themanagement can enterprises improve the effectiveness of layoffs and avoid labordisputes.