中国劳动法资讯速递-北京大成上海律师事务所.pdfVIP

PRC Labor and Employment Law Newsflash - February of 2012 © Dacheng Law Offices PRC Labor and Employment Law Newsflash February, 2012 Tips on Layoffs in the New Year Shocked by the US and Europe debt crisis, the external market is going weak together with the domestic demand slowing down, followed by the potential risks increasing in the fields such as real estate market, investment and financing platforms and private sector borrowing. As a result of all these unfavorable factors, the pressure on operation costs of enterprises is quite heavy. In order to lower the costs, several large and medium sized foreign investment enterprises adopt job cutting strategies since the second half of 2011. However, after entering the year of 2012, the aforementioned situation is not obviously improved. Hence, many people are afraid that they will see the repeat of the layoffs in 2008. After handling and summarizing a large amount of job cuts, the Labor Law Team of Dacheng Law Offices offers the following issues and suggestions for your reference. 1. Can “payment in lieu of notice” substitute for “issuing a statement to the trade union or to all employees with thirty days’prior notice”? The procedural requirement is stipulated in Article 41 of Labor Contract Law of PRC which includes issuing a statement to the trade union or to all employees with thirty days ’ prior notice. The job cut is not due to the faults of employees or the personal reasons and it always causes inconvenience to employees’ life and other aspects. Therefore, the opinion of the trade union or employees shall be heard and considered and the employees have the right to negotiate the lawfulness and reasonableness of the workforce-reduction pla