A Study On The System Of Economic Compensation In China 's Labor Contract Law

As an important system in the field of labor law, economic compensation system is based on inclined protection towards the laborers in order to achieve substantial justice of labor relations, which fully embodies the social law nature of the labor law. In the process of marketization of labor relations, on one hand, the country shall guarantee the freedom and equality of both sides of the labor relations; on the other hand, the deepening of marketization inevitably leads to both sides of the labor relations in the unequal situation that countries need to step in with its visible hand in order to keep substantial fairness. After the laborers are passively ended the labor relations, their survival interests suffer damage. The country makes regulations that the employers shall pay a certain amount of compensation on legal conditions, which can not only make up for the loss of job losers to a certain extent and guarantee the basic interests of the workers; but also play a role in fire restrictions to the employers and stable labor relations. The Labor Contract Law passed in 2007 of our country has made further perfection of the economic compensation system, expanded the applicable scope, made double restrictions on the calculation of high income workers and better protected the interests of the workers. But due to various reasons, the economic compensation level of our country is on the high side in the world. Some specific rules are unreasonable. In reference to foreign legislation cases, it is necessary to improve and perfect our economic compensation system combining with the condition of our country.This thesis consists of four parts. The first part is the introduction of the basic theory of economic compensation, including the concept, characteristics, the definition of nature and the discrimination of related concepts. While defining the nature of the economic compensation, the thesis introduces four theories before the coming of the Labor Contract Law and the reforming requirements of the Labor Law. Compared with other three theories, the author thinks that economic compensation by nature should be obligatory help given by employers to employees passively unemployed. The second part analyses the value orientation of our country’s economic compensation system of labor contract. Compared with some typical countries, our country shows inclined protection towards laborers currently. On the basis of analyzing the reasons and pointing out its results, we make a conclusion that our value orientation should be overall planning, all-round consideration and moderate tilt. The third part sorts out the rules about the economic compensation of the Labor Contract Law and divides the contract compensation system into three parts:application situation, payment standard and legal liability. After detailed introduction about each part, the author points out its problems combing with legislations of foreign countries and districts. Guided by the value orientation that our country’s economic compensation system should follow and based on the problems that the third part has mentioned, the author puts forward the thought of solving and improving the problems from three sides. In terms of application situation, we should set the economic compensation according to different types of labor contract; improve and modify related economic compensation application of the labor contract; cancel the application of economic compensation in the case of dissolving the contract upon consensus through consultation and set the economic compensation by distinguishing the fault of the employers. In respect of pay standard, we should synthesize the age and the seniority of the laborers as a calculation standard; restrict the number of payment years on the economic compensation uniformly; increasing the level of the payment of the economic compensation on economic cuts and improve the regulations about payment time of the economic compensation. In the sense of legal liability, we should improve the rules about the damage that shall be paid when illegally canceling or terminating the labor contract and clear the deadline of payment of the extra damage.