When an employee is fired by the company, when it comes to financial compensation, many people have heard the phrase "n+1" or "2n".
So, is the dismissal compensated according to "n+1" or "2n"? Let's take a look.
Clause.
1. What is "N+1"?
Severance payment: refers to the amount of severance paid by the employer or the employee to the employee according to the number of years of service in the employer, and the employee is legally dissolved or terminated in accordance with the law. Therefore, severance payments are compensatory and protective in nature. For more information about severance payments, please refer to my column "Chapter 11 Prevention of Legal Risks of Severance Payments".
n": refers to the number of years that the employee has actually worked in the unit. Article 47 of the Labor Contract Law stipulates that severance shall be paid to the employee according to the number of years of service in the employer and the standard of one month's salary for each full year. where it is more than six months but less than one year, it is calculated as one year; If it is less than six months, the worker shall be paid half a month's salary.
For example, if an employee has worked for the company for less than 6 months, the severance payment as n is 05 months' salary; If you have worked for more than 6 months to 1 year, n is 1 month's salary.
N+1": refers to the employee's actual working years in the unit plus 1 month of wages in lieu of notice. The employer is required to pay "N+1" as economic compensation, including the following three situations: 1. The employee is sick or injured not due to work, and cannot engage in the original job after the expiration of the prescribed medical treatment period, nor can he engage in the work arranged by the employer. 2. The worker is not competent for the job, and is still incompetent for the job after training or job adjustment. 3. There is a major change in the objective circumstances on which the labor contract is based, which makes it impossible to perform the labor contract, and the employer and the employee fail to reach an agreement on changing the content of the labor contract after consultation.
Clause.
2. What is "2N"?
2n": If an employer dissolves or terminates a labor contract in violation of the provisions of the Labor Contract Law, it shall pay compensation to the employee in accordance with twice the economic compensation standard stipulated in Article 47 of the Labor Contract Law.
In other words, "N+1" refers to severance plus one month's payment in lieu of notice. And "2n" refers to compensation for illegal termination. The nature of the two is different.
Clause.
3. Under what circumstances does the unit need to pay "2N"?
Under 17 circumstances, an employer can terminate a labor contract, as detailed in my column "Chapter 12 Prevention of Legal Risks of Liquidated Damages and Compensation in Labor Contracts". In addition to 17 circumstances, if the unilateral termination by the employer is an illegal termination (e.g., termination of the labor contract with a "third-period" female employee, unilateral dismissal of an innocent employee by the employer, etc.), the employee may file an arbitration with the labor arbitration commission and request the employer to pay compensation for the illegal termination of the labor contract2n.
Severance and indemnity