The Legal Characterization Of The Economic Compensation And System

The economic compensation system is an important system in the labor law. It is the national regulation for protecting workers in order to rectify the strength difference between the employer and the employee, and then formed the substantively balanceable interest pattern. The system has a specific scope of application. The economic compensation, to the employers, is the statutory obligation, and to the employees, is the statutory right.Although our country's economic compensatory legislation didn't start early, our economic compensation has played an important role in positive to stable the labor relationship between the employer and the employee and protect the legitimate rights and interests of the employee. It has function of constrains and compensation. From the nature of our economic compensation, our economic compensation is the payment that the employers give to the employees to help them according to the law, and is different from the default and general compensation. The economic compensation is single, statutory, limited, fair punitive. Our current labor laws enrich the appliance scope of the economic compensation. Cancellation and termination of the labor contract are belonging to the appliance scope. In terms of the payment standard, except of double constraints to the high-income employees, there are no cap regulations generally. We should also see the present economic compensation system problems, and a certain degree of adjustment and improvement is necessary to made. According to the comparative analysis from the function and appliance scope and payment standard of the economic compensation in china and abroad, we can find the standard of our present economic compensation is too high, what exists various defects. On the basis of the economic compensation's nature, we should expand the scope for the appliance, and limited the payment levels. Contract term system would be introduced into the economic compensation system. Defray the economic compensation when removing and ending the labor contract, but don't pay the economic compensation when ending the fixed-term contract.