We have experienced attorneys dealing with laying off employees issues during a client’s dissolution procedures. As we all know, during this period of time, labor dispute regarding severance payment, paid leave or occupational illness and injury compensation and personal profile handover and transfer usually occurs. From legal practice point of view, several things should be aware of and arranged in advance to avoid potential labor dispute between the employer and employee from happening.
It would be wise for an employer to hold an open meeting for announcing the liquidation and lay off plans to all of its employees. Explain clearly what has been endured by the company and why it comes to an end and listen to what the employees really need. An employer who has higher budget for employment termination payments for its employees may then start friendly negotiation with the employees in respect of further arrangements towards them during the liquidation procedures. After all, more compensation may satisfy more people.
However, many employers may end up with tight budgets for covering all the liquidation charges, severance payments, taxes, liabilities and debts, etc. Under this circumstance, you need to invite professional attorneys and accountants to carefully estimate any legal risks and to prepare a sound arrangement for different types of payments.
Sometimes, even if you provide enough compensations and severance payments for employees according to the laws and regulations, your offers may not satisfy all of the employees, and you may likely face complaints, protests or even violent unrests under extreme circumstances. Thus, it would be necessary for you to notify local Public Security Bureau beforehand as to the date and time of the group meeting with your employees in case of any disordered behavior.
Furthermore, after agreeing upon terminating the employment with employees, the employer needs to cooperate with the employees to transfer their personal profiles to other entities. For the employer, it is not only to carry out a duty of transferring the profiles as prescribed by Labor Contract Law but also to show the emotional care of the employer to the employees. It would be easier for the employees to understand the situation and accept the offers if the employer treats them with full respect and emotional care.