The employer has signed a non fixed term labor contract with the worker. When the employer makes economic layoffs, it should pay the worker economic compensation. The standard is to pay one month's salary for every full year of work.
 Labor Contract Law of the People's Republic of China
 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.