On The Economic Compensation System After The Termination Of The Labor Contract

Labor contract is one of the primary socioeconomic factors.Among the disputes arising from the termination of the labor contracts between the employers and the employees,the most controversial conflict between the two parties is the financial compensation.The Labor Contract Law of the People's Republic of China,taking effect on January 1st,2008,is based on the legislative principle of balancing employees' rights and benefits with employers',giving inclined protection to employees and then coordinating the employment relationship.Built on the previous labor law,it clearly stipulates the financial compensation system of the termination of labor contracts,provides more detailed rules of the financial compensation and gives the employers and employees thorough legal basis for financial compensation caused by the termination of labor contracts under different circumstances.This paper outlines the basic theory of financial compensation for the termination of labor contracts between enterprises and employees,uses cases to expound the different situations in China's grassroots judicial practice of the financial compensation for termination of labor contracts and finds out the legislation and judicial practice issues of the financial compensation system that China is facing.In terms of the issues,combined with financial compensation regulations and practices in the developed countries,this paper puts forward some suggestions including completing the legislation of the financial compensation standards segmented by employees' age,widening the channels of labor disputes mediation,enhancing the skills training for judicial officers,and improving the judicial efficiency by using social forces and advanced network technology.We hope that the employers and the employees are still able to live in harmony after the termination of the labor contracts.The financial compensation model in China's labor law can be more suitable for China's national conditions and become the cornerstone of the development of China's legal system.