We know that in reality, for various reasons, the employment contract will be found to be invalid, and the invalidity of the employment contract will cause uncontrollable consequences to both parties to the employment contract. For the employer, the employer may pay the employee severance if the labor contract is terminated because the labor contract is invalid. For the employee, the employment contract may be invalid due to his own reasons and he may be liable for compensation.
So, what are the reasons why an employer may not pay severance if the employment contract is invalid?
According to Article 39 of the Labor Contract Law, if an employee concludes or modifies an employment contract contrary to its true intentions by means of fraud, coercion or taking advantage of the danger of the employee, the employer is not required to pay severance if the employer terminates the contract. At the same time, according to Article 28 of the Labor Contract Law, it can be further obtained that if the labor contract is invalid due to the employee's reasons, the employer may also claim that the employee should return the difference between the labor remuneration agreed in the contract and the labor remuneration of the same or similar position in the employer.
Of course, if the employer is at fault, it also needs to bear the corresponding liability for compensation. The same applies to workers. If the employment contract is invalid due to reasons attributable to the employee, the employer may also claim damages against the employee, but the liability for compensation to be borne by the employee is limited to the actual losses incurred and does not include indirect gains.
In addition, in practice, if both the employee and the employer are at fault, the liability will be divided according to the degree of fault of both parties.