What is the company's layoff standard?

The criteria for company layoffs are that the company has difficulties or needs to be transformed, and then it needs to be laid off. Under any of the following circumstances, if it is necessary to lay off more than 20 employees or less than 20 employees, but accounting for more than 10% of the total number of employees in the enterprise, the employing unit shall explain the situation to the trade union or all employees 30 days in advance, and after listening to the opinions of the trade union or employees, report to the labor administrative department, it may lay off employees: (1) Reorganize in accordance with the provisions of the Enterprise Bankruptcy Law; Serious difficulties occur in production and operation; (three) the enterprise production changes, major technological innovation or adjustment of business mode, and it is still necessary to reduce the number of employees after changing the labor contract; (4) Other major changes have taken place in the objective economic situation on which the labor contract was concluded, which makes it impossible to perform the labor contract. When retrenching personnel, priority should be given to retaining the following personnel: (1) concluding a long-term fixed-term labor contract with the unit; (2) concluding an open-ended labor contract with the unit; (3) there are no other employees in the family, and there are elderly or minors who need to be supported. If the employing unit reduces its staff in accordance with the provisions of the first paragraph of this article and recruits staff again within six months, it shall notify the retrenched staff and give priority to recruiting the retrenched staff under the same conditions.

legal ground

People's Republic of China (PRC) labor contract law

Article 41 Under any of the following circumstances, if it is necessary to lay off more than 20 employees or less than 20 employees, but it accounts for more than 10% of the total number of employees in the enterprise, the employer may lay off employees after explaining the situation to the trade union or all employees 30 days in advance and listening to the opinions of the trade union or employees.

Comply with the provisions of the enterprise bankruptcy law;

Serious difficulties occur in production and operation;

(three) the enterprise production changes, major technological innovation or adjustment of business mode, and it is still necessary to reduce the number of employees after changing the labor contract;

(4) Other major changes have taken place in the objective economic situation on which the labor contract was concluded, which makes it impossible to perform the labor contract.

When laying off employees, priority should be given to retaining the following personnel:

(a) to conclude a long-term fixed-term labor contract with the unit;

(2) concluding an open-ended labor contract with the unit;

(3) there are no other employees in the family, and there are elderly or minors who need to be supported.

If the employing unit reduces its staff in accordance with the provisions of the first paragraph of this article and recruits staff again within six months, it shall notify the retrenched staff and give priority to recruiting the retrenched staff under the same conditions.