Labor Law, The Economic Compensation System For Research

The labor contract is a kind of contracts, but it's not the common civil contract, it builds above the unequal position of the employees and the employing units. The employees have nothing at all, except the labor force, but the employing units own the means of production, own powerful capital. The employees don't have much freedom when concluding a labor contract with the employing units. For gaining precious job opportunity, sometimes, the employees have to accept the harsh condition brought by the employing units. In order to coordinate the benefit between the employers and the employees, protect legal rights and interests of the employees, and safeguard social stability, various countries promulgated the labor laws and regulations to adjust labor relations. Provide employing units pay employees a certain amount of economic compensation after the dissolution or the termination of the labor contracts. The system of economic compensation is an important system to protect employees'rights and interests, and safeguard the stability in labor relations. However, there is still controversy theoretically on the nature of economic compensation. Economic compensation applicable scope, payment standard, payment pattern and so on need further studying.The thesis is composed of three parts. Part I discuss economic compensation concept, nature and character, and compare with the penalty, the indemnity. There are three theories about the nature of economic compensation; every one has both certain reason and fault. Only clarify the nature of the economic compensation, can improve relevant laws and regulations. There are relations and difference among the economic compensation, the penalty, the indemnity. Only distinguish the three clearly, can we correctly understand the connotation of economic compensation.Part II adopts the comparison research method. Compare the countries in the world with our country about the applicable scope, payment standard of economic compensation. The applicable scope of economic compensation contains dissolution, termination of the labor contracts and prohibition of business strife. But there are various provisions in different countries, especially about termination of the labor contracts. Some countries provide that the employers should pay economic compensation to the employees; some provide that the employers should partly pay; others provide that the employers should pay nothing. Under the comparison with other countries and regions, draw on the world's advanced experience of legislation to improve China's legislation.Part III puts forward the suggestion on legislation of perfection of current economic compensation system, and elaborate the applicable scope, the payment standard and payment method of economic compensation. Also discuss the question about payment of economic compensation when actual labor relation is dissolved. China's "Labor Contract Law" Provides directly the payment of economic compensation according to the employees'length of service in the unit, pays one month's economic compensation each year. Though such provisions are reasonable to some degree, and calculate easily and convenient. But, there are lots of difference between dissolution and termination of the labor contracts. The article thinks that the payment standard of economic compensation should be distinguished according to different conditions. Labor contributions compensation, employment risks compensation and prohibition of business strife compensation should be calculated differently. The article discusses if the employing units could give a new job to the employees to take the place of the economic compensation, and thinks if the employing units give the same or the better job, and that doesn't bring inconvenience to the employees, it could replace economic compensation. China's "Labor Contract Law" doesn't provide the lowest sum that the employing units should pay; it is decided freely by the parties. However, the employing units in dominant position usually agree that give lower amount of economic compensation. It violates the rights and interests of employees. So the lowest sum economic compensation should be provided definitely by law.