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What is the compensation standard for breach of contract in the Labor Contract Law?

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Source: Legal Chart Compilation · 2024.03.04 · 8531 people have seen it
Guide: The compensation standard for liquidated damages in the Labor Contract Law is not uniformly stipulated in the law. It should be determined according to the results of the negotiation between the two parties. However, if the agreed liquidated damages are too high or too low, they can be changed and handled. In specific cases, they should be determined according to the results of the breach.
 What is the compensation standard for breach of contract in the Labor Contract Law?

I Labor Contract Law Liquidated damages Compensation standard How many?

The compensation standard for breach of contract in the Labor Contract Law is not uniformly stipulated in law. It should be determined by both parties through consultation《 Civil Code 》Article 585 The parties may agree that when one party breaches the contract, it shall pay a certain amount of liquidated damages to the other party according to the circumstances of the breach, or they may agree on the calculation method of the amount of compensation for losses arising from the breach.

If the agreed liquidated damages are lower than the losses caused, the people's court or arbitration institution may increase them at the request of the parties; If the agreed liquidated damages are too high than the losses caused, the people's court or arbitration institution may, at the request of the parties, appropriately reduce them.

Where the parties have agreed on liquidated damages for delay in performance, the breaching party shall, after paying the liquidated damages, perform debt

Article 586 The parties may agree that one party shall pay the other party Deposit As security for creditor's rights. earnest money contract It is established when the deposit is actually paid. The amount of the deposit shall be agreed upon by the parties; However, it shall not exceed 20% of the amount of the subject matter of the main contract, and the excess shall not have the effect of a deposit. If the amount of deposit actually paid is more or less than the agreed amount, it shall be deemed that the agreed amount of deposit has been changed.

II Liquidated damages for labor contract And Economic compensation Difference of

1. The constituent elements are different. According to the law, the employer Termination of labor contract In addition to those caused by the fault of the worker, the employer shall pay economic compensation regardless of whether it is at fault or not. If the laborer is forced to terminate the labor contract due to the fault of the employer, the employer shall also pay economic compensation. The liquidated damages shall be paid by one party for breach of contract.

2. The calculation base point is different. The specific amount of liquidated damages shall be based on the specific losses. However, the calculation basis of economic compensation is not the labor force's reason Labor contract The loss caused by the cancellation of the contract is the contribution that the worker has made to the employer. The longer a worker works in the employer, the more economic compensation will be paid when he leaves his job; On the contrary, the shorter the working time, the less the economic compensation.

3. Different functions. The function of liquidated damages is mainly to compensate the losses suffered by the observant party due to the other party's breach of contract. The economic compensation has a dual nature. On the one hand, it has the nature of compensation, and on the other hand, it is an obligation derived from the effectiveness of the employer's care obligation when it is not attributable to the reasons of both the workers and the employer, Its legal nature is the severance allowance for employed workers.

It needs to be clear that whether the labor contract can stipulate that the liquidated damages should be determined according to the actual situation when it is signed, and the law clearly stipulates that the labor contract should be subject to confidentiality obligations or Non competition restrictions Liquidated damages can only be set in the case of "default penalty". In other cases, if liquidated damages are set, legal liability should be investigated.

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