Compensation for employees who are bankrupt of enterprises.
1. Compensation plan for bankrupt employees of enterprises.
According to the provisions of the Labor Contract Law of the People's Republic of China and the Enterprise Bankruptcy Law of the People's Republic of China, when an enterprise goes bankrupt, it shall compensate its employees economically. The specific compensation plan is as follows:
1.Severance payments.
Severance refers to the severance payment paid by an enterprise to an employee at the rate of one month's salary per year according to the employee's working years in the enterprise. Where the length of service is less than one year, it is calculated as one year.
2.One-time medical benefits for work-related injuries and disability employment benefits.
If an employee is injured at work before the bankruptcy of the enterprise and is recognized as a work-related injury, in addition to the work-related injury medical expenses paid by the work-related injury insurance**, he can also receive a one-time work-related injury medical subsidy and a disability employment subsidy. The standard for the payment of the subsidy shall be set by the provincial people**.
3.Unpaid wages and unpaid social insurance contributions.
When an enterprise goes bankrupt, it shall give priority to the payment of employees' wages, overtime pay, bonuses and other labor remuneration, as well as outstanding social insurance premiums. If the assets of the enterprise are insufficient to cover all debts, priority should be given to ensuring the basic living expenses of the employees.
2. The legal basis for compensation for bankrupt employees of enterprises.
1.Articles 44 and 46 of the Labor Contract Law of the People's Republic of China stipulate that if an employer is declared bankrupt in accordance with the law, it shall pay economic compensation to the employee.
2.Article 113 of the Enterprise Bankruptcy Law of the People's Republic of China stipulates that the bankruptcy estate shall be repaid in the following order after giving priority to the repayment of bankruptcy expenses and common debts: (1) the wages, medical treatment, disability allowance and bereavement expenses owed by the bankrupt person, the basic endowment insurance and basic medical insurance expenses that shall be transferred to the personal accounts of the employees, and the compensation that shall be paid to the employees according to laws and administrative regulations;(2) The social insurance premiums owed by the bankrupt other than those provided for in the preceding paragraph and the taxes owed by the bankrupt person;(3) Ordinary bankruptcy creditor's rights.
3. The specific operation process of compensation for bankrupt employees of enterprises.
1.Establishment of a liquidation group.
When an enterprise goes bankrupt, a liquidation group shall be established to be responsible for the liquidation, liquidation, assessment and disposal of the bankruptcy estate. The liquidation group shall notify the creditors within 10 days from the date of establishment and publish an announcement.
2.Develop a compensation plan for employees.
The liquidation team shall, in accordance with the provisions of the Labor Contract Law of the People's Republic of China, the Enterprise Bankruptcy Law of the People's Republic of China and other laws and regulations, formulate a compensation plan for employees and submit it to the people's court. The plan shall specify the scope, standards, and payment methods of compensation.
3.Publicize the employee compensation plan and solicit opinions.
The compensation plan for employees shall be publicized and the opinions of employees shall be solicited. If the employee has any objection to the plan, he or she can submit it to the liquidation group, which will explain or adjust it. If the employee has no objection to the plan, he or she may be compensated in accordance with the standards and procedures set out in the plan.
4.Payment of compensation payments.
Before the distribution of the bankruptcy property is completed, the liquidation group shall, in accordance with the provisions of the employee compensation plan, pay the compensation to the employee himself or his close relatives. If an employee has left the enterprise or died, his heirs or legatees may receive compensation accordingly.