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Labor Contract Law

Article 47 An employee shall be paid financial compensation based on the number of years he has worked for the Employer at the rate of one month's wages for each full year worked. Any period of not less than 6 months but less than one year shall be counted as one year. The financial compensation payable to a worker for any period of less than 6 months shall be one-half of his monthly wage. 

If the monthly wage of a worker is three times greater than the average monthly wage in the previous year for employees as announced by the people's government at the municipal level directly under the central government or at the city-with-district level where the Employer is located, the rate for the financial compensations paid to him shall be three times the average monthly wage of employees and shall be for not more than 12 years of work.

The term monthly wage as mentioned in this Article refers to the worker's average wage for the 12 months prior to revocation or termination of his labor contract.

Article 48 If an Employer terminates or ends a labor contract in violation of this Law and the employee demands continued performance of such contract, the Employer shall continue performing the same. If the employee does not demand continued performance of the labor contract or if continued performance of the employment contract has become impossible, the Employer shall pay the employee compensation in accordance with Article 87 hereof. 

Article 49 The State will adopt measures to establish a comprehensive system that enables worker's social insurance accounts to be transferred from one region to another and to be continued in such other region. 

Article 50 At the time of revocation or termination of a labor contract, the Employer shall issue a certificate of revocation or termination of the labor contract and conduct, within 15 days, the procedures for the transfer of the employee's file and social insurance account. 

The employee shall carry out the procedures for the handover of his work as agreed by the parties. If relevant provisions of this law require the Employer to pay the worker financial compensation, it shall do so upon completion of the procedures for the handover of the work. 

The Employer shall have the revoked or terminated labor contracts on file for at least two years, for reference purposes. 

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