In a sluggish economy, every company faces immense pressure on manpower and costs. Improving employee efficiency and reducing unnecessary labor expenses are topics every company must consider in 2015. China's labor protection mechanisms are not yet fully developed, and many marketing professionals find it difficult to obtain compensation when laid off. Below, the author briefly introduces the common dismissal methods used by HR:

We know that dismissing an employee requires compensation according to the N+1 model, with the base calculated on the employee's average monthly income over the previous year. Therefore, the method of splitting salary into fixed wages + performance bonuses + subsidies through salary design is no longer effective. If an employee has worked for 3 years and is to be dismissed, 4 months of compensation are required, a cost that any company or entrepreneur must bear.

How can a company lay off employees without incurring huge compensation costs? How can it avoid economic losses? This is an essential professional skill for HR. They generally follow the provisions of the Labor Contract Law:

Article 39: The employer may terminate the labor contract if the worker falls under any of the following circumstances: (1) It is proved during the probation period that the worker does not meet the recruitment conditions; (2) The worker seriously violates the employer's rules and regulations; (3) The worker seriously neglects duties, engages in malpractice for personal gain, causing major damage to the employer; (4) The worker simultaneously establishes labor relations with other employers, which seriously affects the completion of the employer's work tasks, or the worker refuses to correct the situation after the employer raises it; (5) The labor contract is invalid due to the circumstances specified in Article 26, Paragraph 1, Item 1 of this Law; (6) The worker is criminally prosecuted according to law.

Article 40: Under any of the following circumstances, the employer may terminate the labor contract after giving the worker 30 days' written notice or paying the worker an additional month's wages: (1) The worker is ill or injured for non-work reasons, and after the prescribed medical treatment period, cannot engage in the original work nor in any other work arranged by the employer; (2) The worker is not competent for the job, and after training or adjustment of the job position, remains incompetent; (3) The objective circumstances upon which the labor contract was concluded have undergone major changes, making the contract impossible to perform, and the employer and worker fail to reach an agreement on modifying the contract.

Let's also look at the relevant provisions of the Regulations for the Implementation of the Labor Contract Law:

Article 19: Under the conditions and procedures stipulated by the Labor Contract Law, the employer may terminate a fixed-term labor contract, a non-fixed-term labor contract, or a labor contract with a term based on the completion of a certain work task under any of the following circumstances: (1) The employer and the worker reach a consensus; (2) The worker is proved during the probation period not to meet the recruitment conditions; (3) The worker seriously violates the employer's rules and regulations; (4) The worker seriously neglects duties, engages in malpractice for personal gain, causing major damage to the employer; (5) The worker simultaneously establishes labor relations with other employers, which seriously affects the completion of the employer's work tasks, or the worker refuses to correct the situation after the employer raises it; (6) The worker uses fraud, coercion, or takes advantage of the other party's difficulties to make the employer conclude or modify the labor contract against its true intention; (7) The worker is criminally prosecuted according to law; (8) The worker is ill or injured for non-work reasons, and after the prescribed medical treatment period, cannot engage in the original work nor in any other work arranged by the employer; (9) The worker is not competent for the job, and after training or adjustment of the job position, remains incompetent; (10) The objective circumstances upon which the labor contract was concluded have undergone major changes, making the contract impossible to perform, and the employer and worker fail to reach an agreement on modifying the contract; (11) The employer undergoes reorganization according to the Enterprise Bankruptcy Law; (12) The employer encounters serious difficulties in production and operation; (13) The enterprise changes its production, undergoes major technological innovation, or adjusts its business mode, and after modifying the labor contract, still needs to reduce personnel; (14) Other circumstances where major changes in the objective economic conditions upon which the labor contract was concluded make the contract impossible to perform.

HR knows that these clauses are the "sword of Damocles" to formally dismiss those employees, not only getting rid of them but also avoiding costs.

In summary, the five most common methods to dismiss employees without compensation are:

Swift Blade One: The Probation Blade The Labor Contract Law stipulates that the probation period can be up to 6 months, requiring a 3-year contract. To carefully observe the employee, HR will sign a 3-year contract with a 6-month probation period. As long as you are unqualified or do not meet company requirements during the probation period, you can be shown the door at any time.

Swift Blade Two: The Performance Blade If the employee has already become a regular employee, the probation blade is no longer effective. At this point, implementing a strict performance appraisal mechanism becomes the most effective way to dismiss employees. The Labor Contract Law clearly stipulates that if an employee is incompetent for the job, they can be dismissed with one month's notice. So, the question of competence lies in how the HR manager manipulates it. The performance blade is crucial in combining training and job rotation mechanisms. Employees ranking at the bottom for two or three consecutive months are rarely dismissed directly; such a direct expression of the company's attitude is too blunt. HR will give you training or rotation opportunities, letting you die knowing why. HR will keep records of these training or rotation sessions (which can serve as legal evidence in future labor disputes). If you still fail after training or rotation, you will be notified: come back in a month to handle the procedures.

Swift Blade Three: The Administrative Blade As the saying goes, "Nothing can be accomplished without norms or standards." Company rules and regulations are generally detailed and comprehensive, including employee handbooks, reward and punishment rules, business management, and process design. Administrative punishment mechanisms are established at every business risk control point, including dismissal and expulsion. They will use your violation of the rules to expel you without worrying about compensation.

Swift Blade Four: The Undercover Blade According to the clauses listed in the Labor Contract Law, they use conspiracies to dismiss unqualified employees. They can smoothly show you the door...

Swift Blade Five: The Warm Blade Many times, HR maintains full communication and good relationships with employees, which helps resolve labor disputes through personal influence. The same applies to dismissal: HR will negotiate with the employee on an equal footing, comfort you, and let you leave with dignity. If HR has resources, they may even help you find your next job, so you can remain good friends. It should be noted that HR are also workers; they are responsible to both the boss and the workers.

To avoid being dismissed, not only should you avoid the above blades, but you should also work hard and strive to improve yourself.

Finally, a word to HR: Do not easily dismiss employees who should not be dismissed. As the saying goes, "Saving one life is better than building a seven-story pagoda," especially during the current financial crisis. Giving someone a meal is a great kindness, lest you end up alienated and shown the door yourself.

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