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How to compensate if the labor dispatch contract is not renewed upon expiration

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How to compensate if the labor dispatch contract is not renewed upon expiration


        

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  • 2024-06-18 00:00:47

    The labor dispatch contract involves three parties, namely, the laborer, the dispatch unit, and the employing unit. The laborer and the dispatch unit belong to the labor relationship. If the company does not renew the labor dispatch contract at the expiration of the period, it is necessary to compensate the laborer. According to the law, workers can calculate compensation as follows:
    1. The salary standard for compensation is calculated according to the average salary of the worker in the 12 months before the termination of the labor relationship with the company. The worker should note that the salary here is not calculated according to the salary received by the worker, but the pre tax salary, that is, the payable salary, which is the salary before anything is deducted, including various incomes, such as bonuses and subsidies.
    2. The length of compensation is related to the working years of the workers in the company. One year's work is the economic compensation of one month's salary, two years' work is the compensation of two months' salary, and more than six months' work is calculated as one year, that is, one month's salary compensation.
    Labor Contract Law
    Article 47 The economic compensation shall be paid to the workers according to the number of years they have worked in the unit and the standard of one month's salary for each full year. If it is more than six months but less than one year, it shall be counted as one year; If the period is less than six months, the employee shall be paid economic compensation of half a month's salary. If the monthly salary of a worker is three times higher than the average monthly salary of the employees in the previous year published by the people's government of the municipality directly under the Central Government or the city divided into districts where the employer is located, the standard of economic compensation paid to the worker shall be three times the average monthly salary of the employees, and the maximum period of economic compensation paid to the worker shall not exceed 12 years. The monthly wage mentioned in this article refers to the average wage of the laborer for the twelve months prior to the dissolution or termination of the labor contract.

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