The difference between severance and severance payment
With the rapid development of the economy, the number of labor dispute cases has been increasing, among which the dispute over economic compensation and economic compensation is particularly prominent. In order to better understand the difference between these two types of payments, this article will elaborate on the concepts, applicable situations, calculation methods, and payment responsibilities.
1. Concept and Applicable Circumstances.
Severance refers to a one-time compensation paid by the employer to the employee in accordance with the law when the labor contract is dissolved or terminated. Its purpose is to ensure the basic living needs of employees after the termination or termination of the employment contract. The applicable circumstances of severance mainly include: the employer proposes to terminate the labor contract, the labor contract is terminated by consensus, and the labor contract is terminated when it expires.
Economic compensation refers to the compensation fee that the employer shall pay to the employee in accordance with the law when the employee suffers economic losses due to the employer's illegal acts or breach of contract during the performance of the labor contract. The applicable circumstances of economic compensation mainly include: arrears of wages by the employer, violation of labor safety and health regulations, etc.
2. Calculation method.
The calculation method of severance is generally based on the employee's years of service with the employer and the monthly wage base. The specific calculation formula is: severance = years of service and monthly salary base. Among them, the length of service refers to the number of years that the employee has worked for the employer; The monthly wage base refers to the average salary of an employee in the 12 months prior to the termination or dissolution of the employment contract.
The calculation of financial damages is different according to different violations or breaches. Generally speaking, the amount of economic compensation should be consistent with the actual economic losses of the employee, and take into account the degree of fault of the employer and the actual needs of the employee.
3. Payment Responsibility.
In terms of the liability for the payment of severance payments, according to the Labor Contract Law of the People's Republic of China, the employer shall pay severance to the employee in accordance with the law. If the employer fails to pay the severance in full and on time, the employee may apply to the labor dispute arbitration commission for arbitration or file a lawsuit with the people's court.
In terms of the liability for the payment of economic compensation, if the employer has committed an illegal act or breach of contract that causes the employee to suffer economic losses, the employer shall bear the corresponding liability for compensation in accordance with the law. If the employer fails to pay the economic compensation in full and on time, the employee may also apply to the labor dispute arbitration commission for arbitration or file a lawsuit with the people's court.
4. Other precautions.
In addition to the above differences, the following points should be paid attention to in practice:
1.The standards and payment methods of severance and severance payments may vary by region, and the specific applicable standards shall be implemented in accordance with relevant local laws, regulations and policies.
2.In disputes involving severance and severance payments, employees should actively protect their legitimate rights and interests and take legal measures to protect their interests in a timely manner.
3.Employers shall comply with relevant laws, regulations and policies, and pay severance and severance to employees on time and in full, so as to protect the legitimate rights and interests of employees and the stable development of the enterprise.
4.For the application of severance and severance under some special circumstances, such as non-competition restrictions, confidentiality agreements, etc., a specific analysis should be conducted on a case-by-case basis to determine whether and the applicable standards are applicable.
To sum up, although severance and severance are both forms of compensation for employees, there are obvious differences in terms of applicable circumstances, calculation methods and payment responsibilities. In practice, we should fully understand and grasp these differences in order to better safeguard the legitimate rights and interests of workers and the stable development of enterprises. At the same time, enterprises and workers should work together to promote the continuous improvement and development of China's labor security system.