《中华人民共和国劳动合同法》英文版

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LAWOFTHEPEOPLE'SREPUBLICOFCHINAONEMPLOYMENTCONTRACTS

Adoptedatthe28thSessionoftheStandingCommitteeofthe10thNationalPeople'sCongressonJune29,2007

EffectivefromJanuary1,2008

CHAPTER1GENERALPROVISIONS

Article1

ThisLawhasbeenformulatedinordertoimprovetheemploymentcontractsystem,tospecifytherightsandobligationsofthepartiestoemploymentcontracts,toprotectthelawfulrightsandinterestsofEmployeesandtobuildanddevelopharmoniousandstableemploymentrelationships.

Article2

ThisLawgovernstheestablishmentofemploymentrelationshipsbetween,andtheconclusion,performance,amendment,terminationandendingofemploymentcontractsby,organizationssuchasenterprises,individualeconomicorganizationsandprivatenon-enterpriseunitsinthePeople’sRepublicofChina(“Employers〞)ontheonehandandEmployeesinthePeople’sRepublicofChinaontheotherhand.

Theconclusion,performance,amendment,terminationandendingofemploymentcontractsbystateauthorities,institutionsorsocialorganizationsontheonehandandEmployeeswithwhomtheyestablishemploymentrelationshipsontheotherhand,shallbehandledpursuanttothisLaw.

Article3

Theconclusionofemploymentcontractsshallcomplywiththeprinciplesoflawfulness,fairness,equality,freewill,negotiatedconsensusandgoodfaith.

Alawfullyconcludedemploymentcontractisbinding,andboththeEmployerandtheEmployeeshallperformtheirrespectiveobligationsstipulatedtherein.

Article4

Employersshallestablishandimproveinternalrulesandregulations,soastoensurethatEmployeesenjoytheirlaborrightsandperformtheirlaborobligations.

WhenanEmployerformulates,revisesordecidesonrulesandregulations,ormaterialmatters,thathaveadirectbearingontheimmediateinterestsofitsEmployees,suchasthoseconcerningcompensation,workhours,rest,leave,worksafetyandhygiene,insurance,benefits,employeetraining,workdisciplineorworkquotamanagement,thesameshallbediscussedbytheemployeerepresentativecongressoralltheemployees.Theemployeerepresentativecongressoralltheemployees,asthecasemaybe,shallputforwardaproposalandcomments,whereuponthemattershallbedeterminedthroughconsultationswiththeTradeunionoremployeerepresentativesconductedonabasisofequality.

If,duringtheimplementationofanEmployer’sruleorregulationordecisiononacrucialmatter,theTradeunionoranemployeeisoftheopinionthatthesameisinappropriate,itorheisentitledtocommunicatesuchopiniontotheEmployer,andtherule,regulationordecisionshallbeimprovedbymakingamendmentsafterconsultations.

Rulesandregulations,anddecisionsonmaterialmatters,thathaveadirectbearingontheimmediateinterestsofEmployeesshallbemadepublicorbecommunicatedtotheEmployeesbytheEmployer.

Article5

ThelaboradministrationauthoritiesofPeople’sGovernmentsatthecountylevelandabove,togetherwiththeTradeunionandenterpriserepresentatives,shallestablishacomprehensivetri-partitemechanismforthecoordinationofemploymentrelationships,inordertojointlystudyandresolvemajorissuesconcerningemploymentrelationships.

Article6

ATradeunionshallassistandguideEmployeesintheconclusionofemploymentcontractswiththeirEmployerandtheperformancethereofinaccordancewiththelaw,andestablishacollectivebargainingmechanismwiththeEmployerinordertosafeguardthelawfulrightsandinterestsofEmployees.

CHAPTER2CONCLUSIONOFEMPLOYMENTCONTRACTS

Article7

AnEmployer’semploymentrelationshipwithaEmployeeisestablishedonthedateitstartsusingtheEmployee.AnEmployershallkeeparegisterofemployees,forreferencepurposes.

Article8

WhenanEmployerhiresaEmployee,itshalltruthfullyinformhimastothecontentofthework,theworkingconditions,theplaceofwork,occupationalhazards,productionsafetyconditions,laborcompensationandothermatterswhichtheEmployeerequeststobeinformedabout.TheEmployerhastherighttolearnfromtheEmployeebasicinformationwhichdirectlyrelatestotheemploymentcontract,andtheEmployeeshalltruthfullyprovidethesame.

Article9

WhenhiringaEmployee,anEmployermaynotretaintheEmployee’sresidentIDcardorotherpapers,normayitrequirehimtoprovidesecurityorcollectpropertyfromhimundersomeotherguise.

Article10

Toestablishanemploymentrelationship,awrittenemploymentcontractshallbeconcluded.

Intheeventthatnowrittenemploymentcontractwasconcludedatthetimeofestablishmentofanemploymentrelationship,awrittenemploymentcontractshallbeconcludedwithinonemonthafterthedateonwhichtheEmployerstartsusingtheEmployee.

WhereanEmployerandaEmployeeconcludeanemploymentcontractbeforetheEmployerstartsusingtheEmployee,theemploymentrelationshipshallbeestablishedonthedateonwhichtheEmployerstartsusingtheEmployee.

Article11

IntheeventthatanEmployerfailstoconcludeawrittenemploymentcontractwithaEmployeeatthetimeitsstartstousehim,anditisnotclearwhatlaborcompensationwasagreeduponwiththeEmployee,thelaborcompensationofthenewEmployeeshallbedecidedpursuanttotheratespecifiedinthecollectivecontract;wherethereisnocollectivecontractorthecollectivecontractissilentonthematter,equalpayshallbegivenforequalwork.

Article12

Employmentcontractsaredividedintofixed-termemploymentcontracts,open-endedemploymentcontractsandemploymentcontractstoexpireuponcompletionofacertainjob.

Article13

A“fixed-termemploymentcontract〞isanemploymentcontractwhoseendingdateisagreeduponbytheEmployerandtheEmployee.

AnEmployerandaEmployeemayconcludeafixed-termemploymentcontractuponreachinganegotiatedconsensus.

Article14

An“open-endedemploymentcontract〞isanemploymentcontractforwhichtheEmployerandtheEmployeehaveagreednottostipulateadefiniteendingdate.

AnEmployerandaEmployeemayconcludeanopen-endedemploymentcontractuponreachinganegotiatedconsensus.IfaEmployeeproposesoragreestorenewhisemploymentcontractortoconcludeanemploymentcontractinanyofthefollowingcircumstances,anopen-endedemploymentcontractshallbeconcluded,unlesstheEmployeerequeststheconclusionofafixed-termemploymentcontract:

(1)TheEmployeehasbeenworkingfortheEmployerforaconsecutiveperiodofnotlessthan10years;

(2)whenhisEmployerintroducestheemploymentcontractsystemorthestateownedenterprisethatemployshimre-concludesitsemploymentcontractsasaresultofrestructuring,theEmployeehasbeenworkingfortheEmployerforaconsecutiveperiodofnotlessthan10yearsandislessthan10yearsawayfromhislegalretirementage;or

(3)priortotherenewal,afixed-termemploymentcontractwasconcludedontwoconsecutiveoccasionsandtheEmployeeisnotcharacterizedbyanyofthecircumstancessetforthinArticle39anditems(1)and(2)ofArticle40hereof.

IfanEmployerfailstoconcludeawrittenemploymentcontractwithaEmployeewithinoneyearfromthedateonwhichitstartsusingtheEmployee,theEmployerandtheEmployeeshallbedeemedtohaveconcludedanopen-endedemploymentcontract.

Article15

An“employmentcontractwithatermtoexpireuponcompletionofacertainjob〞isanemploymentcontractinwhichtheEmployerandtheEmployeehaveagreedthatthecompletionofacertainjobisthetermofthecontract.

AnEmployerandaEmployeemay,uponreachinganegotiatedconsensus,concludeanemploymentcontractwithatermtoexpireuponcompletionofacertainjob.

Article16

AnemploymentcontractshallbecomeeffectivewhentheEmployerandtheEmployeehavereachedanegotiatedconsensusthereonandeachofthemhassignedorsealedthetextofsuchcontract.

TheEmployerandtheEmployeeshalleachholdonecopyoftheemploymentcontract.

Article17

Anemploymentcontractshallspecifythefollowingmatters:

(1)Thename,domicileandlegalrepresentativeormainpersoninchargeoftheEmployer;

(2)Thename,domicileandnumberoftheresidentIDcardorothervalididentitydocumentoftheEmployee;

(3)Thetermoftheemploymentcontract;

(4)Thejobdescriptionandtheplaceofwork;

(5)Workinghours,restandleave;

(6)Laborcompensation;

(7)Socialinsurance;

(8)Laborprotection,workingconditionsandprotectionagainstoccupationalhazards;and

(9)Othermatterswhichlawsandstatutesrequiretobeincludedinemploymentcontracts.

Inadditiontotherequisitetermsmentionedabove,anEmployerandaEmployeemayagreetostipulateothermattersintheemploymentcontract,suchasprobationperiod,training,confidentiality,supplementaryinsuranceandbenefits,etc.

Article18

Ifadisputearisesduetothefactthattherateorstandardsforlaborcompensationorworkingconditions,etc.arenotexplicitlyspecifiedintheemploymentcontract,theEmployerandtheEmployeemayrenegotiate.Ifthenegotiationsareunsuccessful,theprovisionsofthecollectivecontractshallapply.Ifthereisnocollectivecontractorthecollectivecontractissilentontheissueoflaborcompensation,equalpayshallbegivenforequalwork;ifthereisnocollectivecontractorthecollectivecontractissilentontheissueofworkingconditions,therelevantregulationsofthestateshallapply.

Article19

Ifanemploymentcontracthasatermofnotlessthanthreemonthsbutlessthanoneyear,theprobationperiodmaynotexceedonemonth;ifanemploymentcontracthasatermofmorethanoneyearandlessthanthreeyears,theprobationperiodmaynotexceedtwomonths;andifanemploymentcontracthasatermofnotlessthanthreeyearsorisopen-ended,theprobationperiodmaynotexceedsixmonths.

AnEmployermaystipulateonlyoneprobationperiodwithanygivenEmployee.

Noprobationperiodmaybespecifiedinanemploymentcontractwithatermtoexpireuponcompletionofacertainjoboranemploymentcontractwithatermoflessthanthreemonths.

Theprobationperiodshallbeincludedinthetermoftheemploymentcontract.Ifanemploymentcontractprovidesforaprobationperiodonly,thenthereisnoprobationperiodandthetermconcernedshallbethetermoftheemploymentcontract.

Article20

ThewagesofaEmployeeonprobationmaynotbelessthanthelowestwagelevelforthesamejobwiththeEmployerorlessthan80percentofthewageagreeduponintheemploymentcontract,andmaynotbelessthantheminimumwagerateintheplacewheretheEmployerislocated.

Article21

AnEmployermaynotterminateanemploymentcontractduringtheprobationperiodunlesstheEmployeeischaracterizedbyanyofthecircumstancessetforthinArticle39anditems(1)and(2)ofArticle40hereof.IfanEmployerterminatesanemploymentcontractduringtheprobationperiod,itshallexplainthereasonstotheEmployee.

Article22

IfanEmployerprovidesspecialfundingforaEmployee’strainingandgiveshimprofessionaltechnicaltraining,itmayconcludeanagreementspecifyingatermofservicewithsuchEmployee.

IftheEmployeebreachestheagreementonthetermofservice,heshallpayliquidateddamagestotheEmployerasagreed.ThemeasureoftheliquidateddamagesmaynotexceedthetrainingexpensespaidbytheEmployer.TheliquidateddamagesthattheEmployerrequirestheEmployeetopaymaynotexceedtheportionofthetrainingexpensesallocabletotheunperformedportionofthetermofservice.

ThereachingofagreementonatermofservicebetweentheEmployerandtheEmployeedoesnotaffecttheraisingoftheEmployee’slaborcompensationduringthetermofserviceaccordingtothenormalwageadjustmentmechanism.

Article23

AnEmployerandaEmployeemayincludeintheiremploymentcontractprovisionsonconfidentialitymattersrelatingtomaintainingtheconfidentialityofthetradesecretsoftheEmployerandtointellectualproperty.

IfaEmployeehasaconfidentialityobligation,theEmployermayagreewiththeEmployeeoncompetitionrestrictionprovisionsintheemploymentcontractorconfidentialityagreement,andstipulatethattheEmployershallpayfinancialcompensationtotheEmployeeonamonthlybasisduringthetermofthecompetitionrestrictionaftertheterminationorendingoftheemploymentcontract.IftheEmployeebreachesthecompetitionrestrictionprovisions,heshallpayliquidateddamagestotheEmployerasstipulated.

Article24

ThepersonnelsubjecttocompetitionrestrictionsshallbelimitedtotheEmployer’sseniormanagement,seniortechniciansandotherpersonnelwithaconfidentialityobligation.Thescope,territoryandtermofthecompetitionrestrictionsshallbeagreeduponbytheEmployerandtheEmployee,andsuchagreementshallnotviolatelawsandregulations.

Theterm,countedfromtheterminationorendingoftheemploymentcontract,forwhichapersonasmentionedintheprecedingparagraphissubjecttocompetitionrestrictionsintermsofhisworkingforacompetingEmployerthatproducesthesametypeofproductsorisengagedinthesametypeofbusinessashiscurrentEmployer,orintermsofhisestablishinghisownbusinesstoproducethesametypeofproductsorengageinthesametypeofbusiness,shallnotexceedtwoyears.

Article25

WiththeexceptionofthecircumstancesspecifiedinArticles22and23hereof,anEmployermaynotstipulatewithaEmployeeprovisionsonthebearingofliquidateddamagesbytheEmployee.

Article26

Anemploymentcontractshallbeinvalidorpartiallyinvalidif:

(1)Apartyusessuchmeansasdeceptionorcoercion,ortakesadvantageoftheotherparty’sdifficulties,tocausetheotherpartytoconcludeanemploymentcontract,ortomakeanamendmentthereto,thatiscontrarytothatparty’strueintent;

(2)TheEmployerdisclaimsitslegalliabilityordeniestheEmployeehisrights;or

(3)Mandatoryprovisionsoflawsoradministrativestatutesareviolated.

Iftheinvalidityorpartialinvalidityoftheemploymentcontractisdisputed,itshallbeconfirmedbyalabordisputearbitrationinstitutionoraPeople’sCourt.

Article27

Ifcertainprovisionsofanemploymentcontractareinvalidandsuchinvaliditydoesnotaffectthevalidityoftheremainingprovisions,theremainingprovisionsshallremainvalid.

Article28

IfanemploymentcontractisconfirmedasinvalidandtheEmployeehasalreadyperformedlabor,theEmployershallpaytheEmployeelaborcompensation.TheamountoflaborcompensationshallbedeterminedwithreferencetothelaborcompensationofEmployeesinthesameorasimilarpositionwiththeEmployer.

CHAPTER3PERFORMANCEANDAMENDMENTOFEMPLOYMENTCONTRACTS

Article29

TheEmployerandtheEmployeeshalleachfullyperformits/hisobligationsinaccordancewiththeemploymentcontract.

Article30

EmployersshallpaytheirEmployeeslaborcompensationontimeandinfullinaccordancewiththeemploymentcontractsandstateregulations.

IfanEmployerfallsintoarrearswiththepaymentoflaborcompensationorfailstomakepaymentinfull,theEmployeemay,inaccordancewiththelaw,applytothelocalPeople’s

Courtforanordertopay;andthePeople’sCourtshallissuesuchorderinaccordancewiththelaw.

Article31

EmployersshallstrictlyimplementtheworkquotastandardsandmaynotcompelorinadisguisedmannercompelEmployeestoworkovertime.IfanEmployerarrangesforaEmployeetoworkovertime,itshallpayhimovertimepayinaccordancewiththerelevantstateregulations.

Article32

EmployeesshallnotbeheldinbreachoftheiremploymentcontractsiftheyrefusetoperformdangerousoperationsthatareinstructedinviolationofregulationsorperemptorilyorderedbymanagementstaffoftheEmployer.

Employeeshavetherighttocriticize,reporttotheauthoritiesorlodgeaccusationsagainsttheirEmployersinrespectofworkingconditionsthatendangertheirlivesorhealth.

Article33

Changessuchachangeinthename,legalrepresentativeormainpersoninchargeof,oran(the)investor(s)in,anEmployershallnotaffecttheperformanceofitsemploymentcontracts.

Article34

IfanEmployerismergedordivided,etc.,itsexistingemploymentcontractsshallremainvalidandcontinuetobeperformedbytheEmployer(s)whichsucceededtoitsrightsandobligations

Article35

AnEmployerandaEmployeemayamendtheprovisionsoftheiremploymentcontractiftheysoagreeafterconsultations.Amendmentstoanemploymentcontractshallbemadeinwriting.

TheEmployerandtheEmployeeshalleachholdonecopyoftheamendedemploymentcontract.

CHAPTER4TERMINATIONANDENDINGOFEMPLOYMENTCONTRACTS

Article36

AnEmployerandaEmployeemayterminatetheiremploymentcontractiftheysoagreeafterconsultations.

Article37

AEmployeemayterminatehisemploymentcontractupon30days’priorwrittennoticetohisEmployer.Duringhisprobationperiod,aEmployeemayterminatehisemploymentcontractbygivinghisEmployerthreedays’priornotice.

Article38

AEmployeemayterminatehisemploymentcontractifhisEmployer:

(1)Failstoprovidethelaborprotectionorworkingconditionsspecifiedintheemploymentcontract;

(2)Failstopaylaborcompensationinfullandontime;

(3)FailstopaythesocialinsurancepremiumsfortheEmployeeinaccordancewiththelaw;

(4)Hasrulesandregulationsthatviolatelawsorregulations,therebyharmingtheEmployee’srightsandinterests;

(5)causestheemploymentcontracttobeinvalidduetoacircumstancespecifiedinthefirstparagraphofArticle26hereof;

(6)GivesrisetoanothercircumstanceinwhichlawsoradministrativestatutespermitaEmployeetoterminatehisemploymentcontract.

IfanEmployerusesviolence,threatsorunlawfulrestrictionofpersonalfreedomtocompelaEmployeetowork,orifaEmployeeisinstructedinviolationofrulesandregulationsorperemptorilyorderedbyhisEmployertoperformdangerousoperationswhichthreatenhispersonalsafety,theEmployeemayterminatehisemploymentcontractforthwithwithoutgivingpriornoticetotheEmployer.

Article39

AnEmployermayterminateanemploymentcontractiftheEmployee:

(1)Isprovedduringtheprobationperiodnottosatisfytheconditionsforemployment;

(2)MateriallybreachestheEmployer’srulesandregulations;

(3)Commitsseriousderelictionofdutyorpracticesgraft,causingsubstantialdamagetotheEmployer;

(4)hasadditionallyestablishedanemploymentrelationshipwithanotherEmployerwhichmateriallyaffectsthecompletionofhistaskswiththefirst-mentionedEmployer,orherefusestorectifythematterafterthesameisbroughttohisattentionbytheEmployer;

(5)causestheemploymentcontracttobeinvalidduetothecircumstancespecifiedinitem(1)ofthefirstparagraphofArticle26hereof;or

(6)Hashiscriminalliabilitypursuedinaccordancewiththelaw.

Article40

AnEmployermayterminateanemploymentcontractbygivingtheEmployeehimself30days’priorwrittennotice,oronemonth’swageinlieuofnotice,if:

(1)afterthesetperiodofmedicalcareforanillnessornon-work-relatedinjury,theEmployeecanengageneitherinhisoriginalworknorinotherworkarrangedforhimbyhisEmployer;

(2)TheEmployeeisincompetentandremainsincompetentaftertrainingoradjustmentofhisposition;or

(3)Amajorchangeintheobjectivecircumstancesrelieduponatthetimeofconclusionoftheemploymentcontractrendersitunperformableand,afterconsultations,theEmployerandEmployeeareunabletoreachagreementonamendingtheemploymentcontract.

Article41

Ifanyofthefollowingcircumstancesmakesitnecessarytoreducetheworkforceby20personsormoreorbyanumberofpersonsthatislessthan20butaccountsfor10percentormoreofthetotalnumberoftheenterprise’semployees,theEmployermayreducetheworkforceafterithasexplainedthecircumstancestoitsTradeunionortoallofitsemployees30daysinadvance,hasconsideredtheopinionsoftheTradeunionortheemployeesandhassubsequentlyreportedtheworkforcereductionplantothelaboradministrationdepartment:

(1)RestructuringpursuanttotheEnterpriseBankruptcyLaw;

(2)Seriousdifficultiesinproductionand/orbusinessoperations;

(3)Theenterpriseswitchesproduction,introducesamajortechnologicalinnovationorrevisesitsbusinessmethod,and,afteramendmentofemploymentcontracts,stillneedstoreduceitsworkforce;or

(4)Anothermajorchangeintheobjectiveeconomiccircumstancesrelieduponatthetimeofconclusionoftheemploymentcontracts,renderingthemunperformable.

Whenreducingtheworkforce,theEmployershallretainwithprioritypersons:

(1)WhohaveconcludedwiththeEmployerfixed-termemploymentcontractswitharelativelylongterm;

(2)Whohaveconcludedopen-endedemploymentcontractswiththeEmployer;or

(3)Whoaretheonlyonesintheirfamiliestobeemployedandwhosefamilieshaveanelderlypersonoraminorforwhomtheyneedtoprovide.

IfanEmployerthathasreduceditsworkforcepursuanttothefirstparagraphhereofhiresagainwithinsixmonths,itshallgivenoticetothepersonsdismissedatthetimeofthereductionand,allthingsbeingequal,hirethemonapreferentialbasis.

Article42

AnEmployermaynotterminateanemploymentcontractpursuanttoArticle

40orArticle41hereofiftheEmployee:

(1)isengagedinoperationsexposinghimtooccupationaldiseasehazardsandhasnotundergoneapre-departureoccupationalhealthcheck-up,orissuspectedofhavingcontractedanoccupationaldiseaseandisbeingdiagnosedorundermedicalobservation;

(2)Hasbeenconfirmedashavinglostorpartiallylosthiscapacitytoworkduetoanoccupationaldiseasecontractedorawork-relatedinjurysustainedwiththeEmployer;

(3)Hascontractedanillnessorsustainedanon-work-relatedinjury,andthesetperiodofmedicalcarethereforehasnotexpired;

(4)Isafemaleemployeeinherpregnancy,confinementornursingperiod;

(5)HasbeenworkingfortheEmployercontinuouslyfornotlessthan15yearsandislessthan5yearsawayfromhislegalretirementage;

(6)Findshimselfinothercircumstancesstipulatedinlawsoradministrativestatutes.

Article43

WhenanEmployeristoterminateanemploymentcontractunilaterally,itshallgivetheTradeunionadvancenoticeofthereasontherefore.IftheEmployerviolateslaws,administrativestatutesortheemploymentcontract,theTradeunionhastherighttodemandthattheEmployerrectifythematter.TheEmployershallstudytheTradeunion’sopinionsandnotifytheTradeunioninwritingastotheoutcomeofitshandlingofthematter.

Article44

Anemploymentcontractshallendif:

(1)Itstermexpires;

(2)TheEmployeehascommenceddrawinghisbasicoldageinsurancepensioninaccordancewiththelaw;

(3)TheEmployeedies,orisdeclareddeadormissingbyaPeople’sCourt;

(4)TheEmployerisdeclaredbankrupt;

(5)TheEmployerhasitsbusinesslicenserevoked,isorderedtocloseoriscloseddown,ortheEmployerdecidesonearlyliquidation;or

(6)Anothercircumstancespecifiedinlawsoradministrativestatutesarises.

Article45

Ifanemploymentcontractexpiresandanyofthecircumstancesspecifiedin

Article42hereofapplies,thetermoftheemploymentcontractshallbeextendeduntiltherelevantcircumstanceceasestoexist,atwhichpointthecontractshallend.However,mattersrelatingtotheendingoftheemploymentcontractofaEmployeewhohaslostorpartiallylosthiscapacitytoworkasspecifiedinitem(2)ofArticle42hereofshallbehandledinaccordancewithstateregulationsonwork-relatedinjuryinsurance.

Article46

Inanyofthefollowingcircumstances,theEmployershallpaytheEmployeeseverancepay:

(1)TheemploymentcontractisterminatedbytheEmployeepursuanttoArticle38hereof;

(2)TheemploymentcontractisterminatedaftersuchterminationwasproposedtotheEmployeebytheEmployerpursuanttoArticle36hereofandthepartiesreachedagreementthereonafterconsultations;

(3)TheemploymentcontractisterminatedbytheEmployerpursuanttoArticle40hereof;

(4)TheemploymentcontractisterminatedbytheEmployerpursuanttothefirstparagraphofArticle41hereof;

(5)Theemploymentcontractisafixed–termcontractthatendspursuanttoitem(1)of

Article44hereof,unlesstheEmployeedoesnotagreetorenewthecontracteventhoughtheconditionsofferedbytheEmployerarethesameasorbetterthanthosestipulatedinthecurrentcontract;

(6)Theemploymentcontractendspursuanttoitem(4)or(5)ofArticle44hereof;

(7)Othercircumstancesspecifiedinlawsoradministrativestatutes.

Article47

AEmployeeshallbepaidseverancepaybasedonthenumberofyearsworkedwiththeEmployerattherateofonemonth’swageforeachfullyearworked.Anyperiodofnotlessthansixmonthsbutlessthanoneyearshallbecountedasoneyear.TheseverancepaypayabletoaEmployeeforanyperiodoflessthansixmonthsshallbeone-halfofhismonthlywages.

IfthemonthlywageofaEmployeeisgreaterthanthreetimestheaveragemonthlywageofemployeesintheEmployer’sareaaspublishedbythePeople’sGovernmentatthelevelofmunicipalitydirectlyunderthecentralgovernmentormunicipalitydividedintodistrictsofthearea1wheretheEmployerislocated,theratefortheseverancepaypaidtohimshallbethreetimestheaveragemonthlywageofemployeesandshallbefornotmorethan12yearsofwork.

ForthepurposesofthisArticle,theterm“monthlywage〞meanstheEmployee’saveragemonthlywageforthe12monthspriortotheterminationorendingofhisemploymentcontract.

Article48

IfanEmployerterminatesorendsanemploymentcontractinviolationofthis

LawandtheEmployeedemandscontinuedperformanceofsuchcontract,theEmployershallcontinueperformingthesame.IftheEmployeedoesnotdemandcontinuedperformanceoftheemploymentcontractorifcontinuedperformanceoftheemploymentcontracthasbecomeimpossible,theEmployershallpaydamagespursuanttoArticle87hereof.

Article49

ThestatewilltakemeasurestoestablishacomprehensivesystemthatenablesEmployees’socialinsuranceaccountstobe