In labor relations, the signing, performance and termination of labor contracts have always been the focus of social attention. When an employer takes the initiative to terminate an employment contract, can the employee or the employer claim liquidated damages for the service period? This article will take a deep dive into this issue**.
First of all, we need to clarify what is meant by "liquidated damages during the service period". According to the provisions of the Labor Contract Law of the People's Republic of China, liquidated damages during the service period usually appear when the employer provides the employee with special training expenses, provides professional and technical training to the employee, and agrees on the service period. If the employee leaves the company before the service period expires, he or she may be required to pay liquidated damages to the employer as compensation for the failure to fulfill the service period commitment.
However, in the event that the employer proposes to terminate the labor contract on its own initiative, according to Articles 46 and 47 of the Labor Contract Law, the employer shall pay severance instead of liquidated damages during the service period, unless the employee has serious violations of discipline or law. In this case, it is the employer that voluntarily terminates the performance of the contract, not the employee's breach of the service period.
In other words, if the employer unilaterally proposes to terminate the employment contract without justifiable reasons, or the reasons for termination do not comply with the circumstances prescribed by law, then they are not entitled to demand liquidated damages from the employee for the service period. On the contrary, according to the relevant laws and regulations, the employer should also pay the employee economic compensation according to the number of years of service.
At the same time, even if there is a service period agreement, if the employer terminates the employment contract for its own reasons, it cannot force the employee to pay liquidated damages. Unless there is a special clause in the service period agreement signed by both parties, liquidated damages shall be paid for failure to complete the service period under any circumstances (including but not limited to voluntary termination by the unit), but such clauses must be legal and reasonable and do not violate public order and good customs, otherwise they may be found invalid.
If the employer proposes to terminate the labor contract on its own initiative, it generally cannot claim liquidated damages for the service period, but shall pay the employee the corresponding economic compensation in accordance with laws and regulations. This is not only an effective protection of the rights and interests of workers, but also a strong safeguard of the principle of fairness and fairness in labor relations. Of course, the specific circumstances of each case are different, and parties should actively seek legal advice when faced with such issues to ensure that their legitimate rights and interests are not infringed.