News + Events
New Tianjin Economic Compensation Payment Criteria - Tianjin Municipal Labor and Social Security Bureau - 天津市用人单位终止或解除劳动合同支付经济补偿新规 - 天津市劳动和社会保障局
December 10, 2008
Edward J. Epstein
Olivia Lee
Released on September 3, and effective as of the same date
This circular addresses compensation payments when a Tianjin enterprise terminates or dissolves an employment contract.
In the event that the employment contract is terminated:
· Compensation payments prior to December 31, 2007 shall be calculated based on the length of the terminated employee’s service with the enterprise: one month’s salary (the employee's average annual salary at the employment contract is terminated) for service of one year or less, not to exceed the equivalent of six months’ salary. The employee's monthly average salary shall not be lower than the enterprise's average salary, nor lower than 60% of the average salary in Tianjin during the preceeding year;
· For compensation payments made after January 1, 2008 shall be calculated according to the Employment Contract Law.
In the event that the employment contract is dissolved:
· The employee's service years prior to December 31, 2007 shall be calculated according to the Employment Law and other effective regulations issued before 2007;
· The employee's service years after January 1, 2008 shall be calculated based on the Employment Contract Law.