The Study Of Economic Compensation In Labor Contract

Economic compensation plays a vital role in protecting the laborers' legal rights since it emerged.The Labor Law and Labor Contract Law of People's Republic of China have been completing the stipulation of economic compensation in the range of application and the basis of calculation,therefore,economic compensation has more function than before.Additionally,it also arouses the debate of whether the stipulation is reasonable or not.China is stepping in a new era of socialism and it is required to pay much more attention on livelihood issues during the 19 th National Congress of the Communist Party of China.With the deepening reform of the economic system,the system of labor contract economic compensation also needs to reform and improve.Consequently,a scientific and reasonable definition of the nature of the economic compensation is truly important.Reflecting on the current economic compensation rules,correctly understanding the essence of the labor contract economic compensation in our country and restoring the essence function of economic compensation and then to guarantee the economic compensation play an essential role in the field of protecting laborers' rights and interests are the main concerns.A scientific and reasonable definition of the nature of economic compensation is the basis for positioning its institutional function.Meanwhile,it is also a theoretical basis for designing the specific legal rules.In the current legislation of our country,the application scope of economic compensation is too wide,the payment standard is too high and the calculation standard is too unified,and the function of unemployment insurance and the economic compensation is overlaps which results in a difficulty in reality.Although the legislators' purpose is to make sure each laborer could get enough compensation when dissolving or terminating the labor relations with the employers,it makes the employers bear more economic pressure.It is harmful for our country to build a harmonious and stable labor relation.At the same time,the labor contract economic compensation shares a similar function with the unemployment insurance system which also caused the waste of legislative resources and it is not conducive to implement the legal stipulation.Therefore,the study of economic compensation needs to take both theoretical basis and practical stipulation design in to consideration and use the method of comparative study and empirical study to figure out the nature of the economic compensation.And then analyze the range of application and the calculation standard of the economic compensation.Finally,how the nature of economic compensation should be and how to design the concrete stipulation will be summed up.At the meantime,the suggestions of the development path for both economic compensation and the unemployment insurance will be given by comparing the economic compensation and the unemployment insurance.In a word,economic compensation is the fair share of the responsibility which the employer passes the unemployment risk to the laborer due to dissolving or terminating the labor contract.The legislation of our country adopts the viewpoint of compensatory of labor contribution to design the concrete rules and to expand the scope of application.However,expanding the scope of application causes obstacles in application,such as the function of unemployment insurance overlaps with the economic compensation,makes the unemployment insurance system almost failed in application.Based on reality,the design of economic compensation system should take fair responsibility allocation as a starting point,to narrow the application range of economic compensation and reduce the payment standard and to differentiate the calculation standard.To expand the coverage of unemployment insurance and improve the unemployment insurance payment standard in order to make the two different institutions play their own role.It will save the legislation resources and help build a harmonious and stable labor relation in our country.