The New Law Gives More Flexibility To Operational Redundancies.

Xie Yingjian, director of the Labor Relations Department of the Guangzhou labor and Social Security Bureau, said there was no need to worry about the concerns expressed by business operators and judicial practitioners.

The new labor contract law pushes no fixed term contract in order to help workers to maintain a sense of stability and promote harmonious labor relations in enterprises.

But "no fixed term labor contract" does not mean "permanent employees", nor is it "iron rice bowl".

He said, "compared with the old law, the new law will adjust the" economic layoffs "to" operational redundancies ", which actually makes the layoffs of enterprises more flexible. Enterprises need not worry about returning to the fixed work system after the implementation of the new law.

According to past regulations, enterprises can make economic layoffs when serious economic difficulties occur, and all layoffs should be reported to relevant departments.

It is worth noting that the forty-first provision of the new law stipulates that in addition to "serious difficulties" in accordance with the provisions of the enterprise bankruptcy law and the "production and operation difficulties", "enterprises still need to reduce their staff after changing the labor contract after the adjustment of the enterprise's pfer of production, major technological innovation or mode of operation," and "other major changes in the objective economic situation based on the conclusion of the labor contract, resulting in a failure to fulfil the labor contract" situation, which can also be laid off.

That is to say, enterprises can also lay off because of business reasons, and the premise is to pay economic compensation.

The new law also stipulates that it is necessary to report only the scale of layoffs: the layoffs of more than 20 people or the reduction of less than 20 people, but accounting for more than 10% of the total number of employees, the employer should explain the situation to the trade union or all the staff 30 days in advance. After listening to their opinions, the employer will report the layoffs to the labor administrative department.