Research On Applicable Law Of Economic Layoffs

Due to the influence of economic crisis, the whole global economy has adifferent degree of decline. Even though the general Chinese economy maintained arapid development momentum, however, there are still many companies in manydifferent areas and industries strongly affected by the terrible economic situation, thedecrease of operating incomes, the reduction of profits and some other reasons allbring much pressure to them. Especially under the background of Chinese economicdevelopment model is currently still developing from the labor-intensive totechnology-intensive stage, the arising prices of raw materials, the reduction ofcontraction orders, the product unmarketable, financing difficulties, which all makethe problem of the human cost more serious. Therefore, the ‘economic layoffs’ is theright to those employers to discharge its labor contracts with employees based on thelaw under the current special economic situation. The “People’s Republic of ChinaLabor Contract Law" is a law to protect the basic rights of workers. However,compared with the article27of the2004’s “People’s Republic of China LaborContract Law", the article41of the2007’s “People’s Republic of China LaborContract Law" obviously eased the limitations of employers to help them implementthe ‘economic layoffs’. Meanwhile, the article41still explicates some new layoffstandards and a certain extent about layoffs. The new article41in2007improves theemployers’ operating independent rights, while strengthens efforts to protect thelegitimate workers as well. However, in the new article41, there are still someunclear clauses on the conditions and procedures of the ‘economic layoffs’, thus,many problems about ‘economic layoffs’ appear along with some special purposes ofsome local governments. The ‘economic layoffs’ do not work out effectively and therights of workers are not effectively protected either. Above, the improvement of theChinese ‘economic layoffs’ has a significant effect on the whole Chinese society anddevelopment.The report mainly analyzes the special Chinese details about the ‘economiclayoffs’ based on the law, meanwhile. tries to find out the improvements of which based on the analysis and draw of the current developed countries’ layoff laws andexperiences.There are totally four parts in the report; the first part is a research on theconditions of the ‘economic layoffs’. In this part, the standards of whether employersis in terrible economic situations, the layoff duties of employers and the standardamounts of the layoff employees would be maintained. The second part is a researchon the procedures of the ‘economic layoffs’. In this part the roles of Trade unions andthe Administration would be detailed. The third part is a research on the limitations oflayoffs and recruitments. The fourth part is a research on the compensation for thoselayoff employees, meanwhile, the ‘Economic compensation’ and ‘economic damages’would be maintained in the part.