Be about to retire after 4 years, the unit takes 600 thousand to buy out length of service suddenly however, whether should agree?

2022-04-30 0 By

For “buyout of seniority”, I believe many people have heard of it, but it may be only a little understanding, after all, this practice is popular years from now some years.In fact, the buyout mainly started in early 1978, when some state-owned enterprises needed to reduce the size of their employees in order to improve their efficiency and transform their development.According to the China Statistical Yearbook, the number of state-owned enterprise employees in China dropped from 110 million to 52 million in 1998, while the number of collective enterprise employees from 40 million dropped to 10 million.So are buyouts legal in this day and age?If be the worker that retires after 4 years, the unit wants to use 600 thousand to buy off length of service, is this cost-effective?Do you want to agree?First, the history of “buyout” buyout, in essence, the enterprise in order to reform, cut the part of the people who do not need, give them a severance pay, can also be said to be economic compensation.However, the practice of buyouts in the past and now is very different, which needs to be combined with a specific historical context to see.In the 1980s, China’s economy ushered in earth-shaking changes.In early 1978, the transition from a planned economy to a market economy was both an opportunity and a challenge.On the one hand, some people actively respond to national policies and seize opportunities.For example, with the establishment of special economic zones, enterprises and factories have mushroomed, creating tens of thousands of job opportunities and attracting a large number of migrant workers.On the other hand, a large number of laid-off workers in state-owned enterprises and collective enterprises have lost their way in the turbulent current of The Times.In the era of the planned economy, they worked in factories and were hired for life, which would have been an “iron rice bowl” that could last a lifetime and even inherit their fathers’ jobs.Their life, medical care and old-age care are all handled by enterprises with good salaries.At that time, large state-owned factories were the dream of countless farmers.At the same time, it is their sense of achievement and pride that they have dedicated their lives to the construction of the country.However, with the arrival of market economy tide, their dream ruthlessly broken.And this is also the helpless development of The Times.Well known.State-owned enterprises had generous welfare benefits, especially in those days.There are essential differences between those state-owned factories and those under the market economy.Under the market economy, everything is “money oriented”, the pursuit of enterprise profit maximization, as much as possible to hire those cheap labor force.In state-run factories, every aspect of life is taken care of. There are schools, hospitals, bathhouses, cinemas and other facilities on the factory floor, and many aspects are reimbursable, so workers do not need to pay for them.Therefore, such a rich and perfect welfare system is bound to be a considerable expense.In addition to excess capacity, supply exceeds demand, leading to lower corporate profits, many workers in a state of nothing to do, production quality will naturally decline.On the other hand, with the development of market economy and social progress, a large number of private enterprises and foreign companies have entered the Chinese market. However, they have streamlined staff, low labor force and generous welfare benefits.In the pursuit of all profit for the purpose of private enterprises, foreign enterprises in front of the state-owned enterprises will lose competitiveness.Therefore, the reform of state-owned enterprises is imminent, and thousands of workers will be laid off.Maybe some people will think, is not unemployed, just look for a job?However, in the social context of the time, this was not so simple.In 1996, China’s social security system began to establish and implement;On January 22, 1999, The State Council issued the Interim Regulations on The Collection of Social Insurance, which for the first time explicitly proposed the collection of endowment insurance, medical insurance and unemployment insurance from units and individuals.On July 1, 2011, the Social Insurance Law of the People’s Republic of China came into force.China’s social security system in the late 1990s, the beginning of the 21st century, gradually established and improved.That is to say, the laid-off workers at that time did not have social security.The benefits such as medical care and old-age care, which should have been provided by the state-owned enterprises, were lost, so the state-owned enterprises laid them off and gave them a large amount of economic compensation, which was also known as “buyout”.But what should they do after being forced out of their jobs and forced into society?Since most of them started working in factories in their teens, most have no education and a junior high school diploma is hard to come by.After being laid off, most of them flock to unskilled, low-wage industries such as retailing, especially when many have large families to support and are in a difficult situation.This is a pity and helplessness of the development of The Times, but the wheel of history is always rolling forward, since 1978, the country is making progress, people’s living standards are improving, this is obvious to all.In fact, strictly speaking, now there is no “buyout length of service” this term, should be called “economic compensation” is more appropriate.In 1999, the Ministry of Labor and Social Security issued a notice on Implementing the Two Regulations to Expand the coverage of social Insurance and Strengthen the Work of Fund Collection.Accordingly, according to “labor law” regulation, the behavior that terminates labor contract through the means of buying off length of service is illegal, if laborer does not agree, can apply for labor arbitration.And if it is the unit of choose and employ persons to take the initiative to terminate the labor contract, and the employee consultation, reached an agreement, in this case will not constitute illegal.The Labor Contract Law of the People’s Republic of China stipulates that economic compensation shall be determined according to the number of years the worker has worked in the unit.The standard of one month’s wages for each full year is paid to the laborer.If the period is more than six months but less than one year, it shall be counted as one year;For less than six months, economic compensation of half a month’s salary shall be paid to the laborer.Three, 600 thousand buy-out is cost-effective?I think this score situation to look at.First of all, in terms of the amount of money, we can work out an account.If working fixed number of year is 30 years, so economic compensation is 30 months, that is to say monthly salary is 20 thousand.Four years before retirement, or 48 months, you could make $960,000.It’s just not worth it in terms of the amount of money.And the shorter you work, the bigger the gap and the less cost-effective it becomes.Next, after buying off length of service, the unit also won’t hand in social security to you, need oneself pay social security.Four years, that’s a lot of money.So in that respect, it is obvious that you should not accept a buyout.Summary should accept buyout after all?In fact, there is no standard answer to this problem, need to be different, according to their actual situation to consider.For example, if the unit is on the basis of “labor law” regulation, return you to increase compensatory money additionally, the salary that gives you 600 thousand compensatory money and 4 years come down differs not big, so accept 600 thousand buy out length of service cost performance price is very high also.In addition, you also need to consider personal factors. If you are not in good health or do not have the will to continue working, you want more free time to spend more time with your family, or go out to travel and enjoy life, that is also a good choice.So what would you do?