After receiving the dismissal notice, do not panic; stay calm. Find any recording tools or software at hand to listen to what the other party says, think it over first, and do not give a substantive and decisive response; you may also consider replying later. Fight for your legal rights and compensation. At this time, you can start saving your pay slips, attendance records, labor contracts, and other materials, and collect relevant documents such as your job responsibilities, project results, and performance evaluations, in case you need them for future arbitration.
When asked about being laid off and how to act afterward, people generally have three types of thoughts:
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The company is not concerned about whether you want to rest or immediately look for a job; they care about:
- Value: What value can you bring to the company?
- Attitude: What is your attitude towards work?
- Ability: What have you done during the period after being laid off? What can your actions prove about your abilities?
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Focus on the short term: Entertainment, job hunting, and selection are all short-term behaviors. Rest and entertainment are understandable, but once this time extends, the brain and body will sink into a comfort zone, making it increasingly difficult to return to a work state.
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Localized thinking: The above three approaches only allow the brain to oscillate between the options of "job hunting" and "rest." Therefore, the relevant work we can do is merely preparing resumes, browsing job websites, submitting applications, and preparing for interviews. This localized thinking limits our vision, and when one path is blocked, it feels like there is no way out. Conversely, our considerations regarding layoffs must revolve around the "company perspective," "long-term perspective," and "holistic perspective."
The first step is to divide the layoff issue into two phases: one phase is the preparation phase before the layoff, and the other is the planning phase after the layoff. The second step is to have a series of preparations before the layoff. Being prepared for potential crises is essential. The third step is to establish plans for different phases after the layoff. Note that this is not a short-term plan like "rest" or "job hunting," but a plan that spans up to a year.
Preparation before the layoff: Regardless of the job, consider the most critical situation: If I am laid off, what preparations should I make now? Thinking from a holistic perspective means that it's not just about preparing a resume; it involves preparing in these three areas:
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Finances: The direct impact of being laid off is the loss of income, turning personal earnings negative. If there is no savings pool at this time, family cash flow will break, and many people are also burdened with mortgages and car loans, leading to a collapse in mindset and desperation. Therefore, financial risk management is necessary at all times.
- Financial assessment: What are the monthly expenses? If I indulge a bit, how much more can I spend? If I "declutter," what is the minimum expenditure?
- Financial reserves: If you have a family, it's best to save enough to cover a year’s expenses without working. If you are single, at least save enough for half a year’s expenses.
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Abilities: You may have never comprehensively sorted out your abilities. You might think that having worked in a certain job for many years is a skill; you might also think that organizing your various certificates counts as an ability assessment. However, these do not necessarily mean you truly possess certain abilities. One method of sorting abilities is to "update your resume."
- Exceptional individuals update their resumes annually, traditionally referred to as "year-end summaries" and more fashionably as "retrospectives." In the process of updating the resume, we can naturally sort out our abilities and discover what similar work we have done in the past. If this job is lost, what other jobs can I find? More importantly, during the updating process, new discoveries may arise. For example, if I want to transition from operations to marketing, but upon writing my resume, I realize I haven't worked on any marketing-related projects; that means in the following year, I need to engage in marketing-related projects to unlock new abilities.
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Networking: Now, everyone probably knows that having connections when job hunting increases the success rate. Anyone who has successfully made a significant career transition has almost certainly utilized their network. However, the problem is that if you only think about using your network to find a job after being laid off, you may find that you haven't built up much of one. After all, relationships in networking are built over time. Therefore, this is something one should do before being laid off: sort out and expand their network.
When we prepare in these three areas, we can roughly anticipate what cards we have to play if we encounter the risk of layoffs, which will reduce psychological worries.
Post-layoff planning: Humans are "goal-plan" animals. When we set a very specific goal and a very clear plan for ourselves, we will act like a wound-up toy. Let's consider it from the recruiter's perspective: for the same position, three candidates apply: one has just left their job two or three months ago; another has been unemployed for six months; and the last one has been out of work for over a year. Even if these three individuals have similar work experience, will we treat them equally?
For the one who just left, we may not care much about what they have done in the past two or three months; however, for the one who has been unemployed for six months, we will definitely be more concerned about what they have done during that time. At the same time, we will place the candidate who has been out of work for over a year at the lowest priority, as we are clearly most suspicious of their stability.
Since recruiters think this way, as those who have been laid off and job seekers, our job-hunting plans should also be phased, with different focuses and actions for each phase.
- Early-stage plan (0-3 months): The plan for these three months can be summarized in five words: high-standard job hunting. Finding a high-standard "ideal" job within three months is the best choice. Therefore, you can give yourself a break, binge-watch shows, play games, and go to Tibet to find yourself, then visit Tokyo and Paris, but do not exceed one month. During this time, create a career goal plan: what is your top choice, second choice, and third choice profession? This is similar to the "reach-stabilize-safety" plan for college entrance examination applications. Job hunting also needs a "reach-stabilize-safety" strategy. Reach for a few professions, stabilize a few professions, and ensure a few professions.
Then, for the next two months of job hunting, spend the first two to three weeks on the "reach" strategy. Submit resumes, connect with your network, interview with companies, and mobilize all possible resources to target the companies and professions you most want to join. After two weeks of reaching out, you will have two outcomes: a. Successfully get hired; b. Discover a significant gap, realizing that achieving this in the short term is impossible. Then switch to the "stabilize" strategy, focusing more energy on job hunting for your second-choice profession.
- Mid-term plan (3 months - 1 year): By the mid-term, the strategic approach must change. Because when we start submitting resumes and interviewing again, companies will lower our priority. If someone has not found their desired job after three months, analyzing the reasons from the company's perspective: either they haven't been looking, which indicates they are restless and unstable; or they have been looking but haven't found anything, which means their self-positioning is unclear.
At this point, if we continue to pursue high-standard job hunting, our chances will significantly decrease, so we can only adopt the "stabilize" and "ensure" strategies. Therefore, we must relax our job-hunting standards, trying positions in both large and small companies, and both desired and undesired roles.
Next, it's time to prepare for work that doesn't involve a traditional job. What is referred to as "non-traditional work" can be nicely termed "freelancing" or "entrepreneurship," but less favorably, it can be seen as "part-time work" or "gigs." As a person's unemployment duration increases, their chances of successfully reapplying decrease. However, if they are still working and earning, it can improve their success rate. This indicates that they possess proactive qualities and the ability to earn money. Therefore, at this stage, you should consider several questions:
- What problems can I solve?
- Where are my clients?
- How do I find clients?
- How do I sell myself?
Then, set a 2-3 month learning plan to acquire skills that can solve client problems. Many skills may not be learned in a day or a week, but if you dedicate yourself to studying for three months, you can achieve results. For example, mastering office software can help beautify PPTs for others; learning Photoshop, video editing, or graphic design can earn you some money; learning community management can allow you to participate in various communities and help them serve clients for a fee.
Finally, remember the financial preparations mentioned before the layoff? If you can roughly assess your maximum and minimum monthly expenses at that time, when you have been unemployed for three months without income, you will need to reduce your monthly expenses.
- First, quit smoking and drinking to save some money;
- Cook your own meals;
- Boil your own water;
- Only enroll your child in the most essential extracurricular classes;
- If you have a car, it's best to park it in a free public parking lot;
- Avoid impulsive shopping while watching live streams.
In the absence of increased income, focus on cutting expenses to get through tough times.
- Long-term plan (>1 year): The worst has happened. You have been laid off and have not worked for a year. At this point, unless you have been studying full-time or working independently during this year, do not submit resumes. The chances of being invited for an interview are very slim. If you still want to find a job, referrals from friends and family may be the most likely route.
At this time, the plan should shift from "working for a company" to "making money." In simple terms, use all legal means to solve certain problems for people in exchange for income. For example, on a cold winter night, Old Wang and Old Ma were at a hot pot restaurant in the south city, and they ran out of lamb and beer. Old Wang said he was tight on money lately. Old Ma suggested they make some money. The next morning, a black three-wheeled motorcycle arrived at the street corner, two men in black got out and moved two boxes. Just like that, a breakfast stall was set up.
While this is a joke, it illustrates that as long as you want to, there are always ways to make money.
Being asked to resign voluntarily: Do not resign voluntarily, do not resign voluntarily, do not resign voluntarily. If you do not sign the resignation agreement, the boss cannot dismiss you unless they pay compensation.
According to Article 24 of the Labor Law of the People's Republic of China, a labor contract can be terminated by mutual agreement of the parties. Article 25 states that an employer may terminate a labor contract under the following circumstances:
- If the employee is proven not to meet the recruitment conditions during the probation period;
- If the employee seriously violates labor discipline or the employer's rules and regulations;
- If the employee is grossly negligent, engages in malpractice, and causes significant harm to the employer's interests;
- If the employee is legally held criminally responsible.
Article 26 states that an employer may terminate a labor contract under the following circumstances but must notify the employee in writing thirty days in advance:
- If the employee is ill or injured not due to work and cannot engage in their original work after the medical period has expired, nor can they engage in work arranged by the employer;
- If the employee is unable to perform their job and, after training or job adjustment, still cannot perform their job;
- If there are significant changes in the objective circumstances upon which the labor contract was based, making it impossible to perform the original labor contract.
Fighting for legal compensation: How much can be compensated? Article 40 states that an employer may terminate a labor contract by notifying the employee in writing thirty days in advance or by paying the employee an extra month's salary:
- If the employee is ill or injured not due to work and cannot engage in their original work after the specified medical period has expired, nor can they engage in work arranged by the employer;
- If the employee is unable to perform their job and, after training or job adjustment, still cannot perform their job;
- If there are significant changes in the objective circumstances upon which the labor contract was based, making it impossible to perform the labor contract, and the employer and employee have not reached an agreement on changing the labor contract's content.
Article 47 states that economic compensation is paid to the employee based on the number of years they have worked at the unit, with one month's salary paid for each full year of service. For those who have worked for more than six months but less than a year, it is calculated as one year; for those who have worked for less than six months, half a month's salary is paid as economic compensation.
Is severance pay considered basic salary? Severance pay usually refers to the employee's salary for the last month before being laid off, which is the employee's actual income. This income includes basic salary, bonuses, allowances, overtime pay, and all other salary income. Therefore, when calculating severance pay, all income must be added together to ensure that the employee receives all the wages they are entitled to.
What should I do if the boss is still unwilling to provide compensation after the conversation? The only solution is through legal means:
- Negotiate with the employer;
- Request mediation from the inspection team;
- Apply for arbitration with the labor bureau;
- Initiate a lawsuit in the people's court.
Necessary documents after resignation: Make sure the employer processes your resignation procedures; many students are unaware of this. It is crucial to distinguish that resignation procedures are not the same as a resignation certificate; resignation procedures are not the same as a resignation certificate; resignation procedures are not the same as a resignation certificate.
Summary of the N+1 package: Current issues with the agreement contract:
- The compensation does not specify amounts for annual leave at three times, weekend overtime at two times, and weekday overtime at 1.5 times.
- The compensation amount for the year-end bonus calculated by time.
- The compensation amount for overtime during the "transition period."
- The month until social security and housing fund contributions can be negotiated.
- The agreement states that payment will be received by the end of April, while the Labor Contract Law stipulates that it should be received on the last day of the handover.
- Regarding stock vesting, it is recommended to negotiate the exit date to April or discuss other conditions.
- If you haven't signed yet, there is room for negotiation; do not believe in the so-called "group module version."
Points to note during the negotiation:
8. Record the conversation; inform HR and those present, stating that the conversation will be recorded to protect our legal rights (only such recordings are legal).
9. Learn to withstand pressure, clearly understand the agreement terms, especially the second, third, and fifth clauses. Do not let misleading language at the scene affect your decision-making and judgment.
10. When N is greater than 1, inquire about choosing 2N, and be sure to collect evidence (because the employment environment is not optimistic).
11. If the leader offers to introduce you to the next job and asks for your resume, please be detailed. Clarify the leader's motives before taking action.
12. Save personal labor contracts, attendance and overtime records, and agreement contracts (personal labor contract: Jingwo -> HR electronic signature -> labor contract, can be exported; attendance and overtime records can be exported as PDF from the ERP personnel portal).
13. Try to stabilize your emotions, review labor laws, and calmly calculate the compensation amount you should receive, provided it is reasonable compensation.
14. Think about why HR is so eager for you to sign N+1.
Some tips for the package:
- Spend all employee points.
- Spend all balances (it’s okay if the balance isn’t fully spent; it will be paid with the last salary and will be combined for tax purposes).
- Take sick leave; if the leader approves, it’s fine. For continuous days, a certificate from a top-tier hospital is needed.
- Weekday compensatory leave is discounted at 1.5 times, weekend compensatory leave at 2 times, and holiday leave plus annual leave at 3 times.
- N+1 has no impact on resignation background checks.
- N is the total income for the past 12 months divided by 12, which includes the year-end bonus, with an upper limit of three times the average salary in Beijing (around 37,840 in 2021).
- N+1 is agreement compensation; once signed, it is considered accepted. 2N requires approval; as long as you stay and have sufficient evidence, and do not make mistakes in the company, you can potentially succeed.
Do not sign! Do not sign! Do not sign! Recent illegal determination scores; here are some references.
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According to labor law, you can choose to continue performing the labor contract. Let them lay you off and then go for arbitration, 2N. Clock in and out normally every day; unreasonable demands can be refused. From now on, record every day and keep all work-related evidence. Once you sign, you lose all your rights. This so-called "negotiation" is merely a legal facade for enforcement review; as long as you do not sign and keep evidence, they will not dare to act. Remember, during negotiations, state your rights, such as 2N, stock options, and eliminate all unreasonable terms; many of the company's standard clauses are traps that limit your rights. Therefore, do not sign, and even negotiate; confirm whether each clause should appear in the agreement, actively and unconditionally assert your rights, and do not be trapped by the "negotiation" facade they impose!
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Other workers facing similar issues can refer to this; if they want to negotiate, simply respond, "Talk to my lawyer." It’s not expensive; you can find a lawyer for around a thousand yuan to handle such matters. HR should not play both sides. This is a reasonable, legal, and straightforward solution; do not be intimidated by their underhanded tactics.
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Additionally, consider the options for follow-up plans:
- If you go along with their "negotiation," you may gain minimal compensation rights but lose the most significant rights to defend and voice your concerns, while the company gains maximum overall benefits.
- Arbitration allows you to legally obtain the compensation you deserve without being denied by any clauses, and the company bears the risk of losing the arbitration case.
- The company should provide legally valid economic evaluations, and the union should report formal government documents to you for legitimate evaluation.
- Lastly, everyone can negotiate; true "negotiation" should provide sufficient supplements. Except for the fourth point, all others are solutions that maximize company benefits and minimize employee losses, so you need to clearly understand the critical relationships and make your own choices.
In summary, do not be afraid; maintain a dignified stance, and you can legally defend your rights; and do not sign.
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A reminder: if you do not understand the relevant labor law articles, consult a lawyer; do not interpret them yourself with only partial understanding, as many use your lack of knowledge about specific practical details to exploit you.
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As long as you do not voluntarily propose to resign, the company can only negotiate conditions to make employees resign voluntarily. It is understood that the conditions proposed by the company are to exempt the enterprise from liability and risk control.
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Generally, as long as it is not a violent review, companies will handle reviews through negotiated resignations. The company pays quickly, and the employee proposes the company's exemption.
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Generally, companies will not proactively offer 2N unless the individual can provide evidence of the company's illegal termination of the labor contract during arbitration.
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For the reasons above, employees typically negotiate conditions for resignation at >= N+1. Invalid companies have backup economic evaluations at the labor bureau.
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Lastly, it is not advisable to blindly pursue 2N; do not sign without reviewing the conditions. If you are not satisfied with the conditions, you can hold out as long as your mindset remains stable. After all, enduring in the company is practically better than going for evaluations. If the company uses weak tactics and accidentally triggers the "forced termination of labor relations" scenario, congratulations in advance, as long as you are prepared to provide evidence for arbitration, it is highly likely to succeed.
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I have gone through arbitration and can share my experience. I have undergone several background checks and have never heard that arbitration affects job hunting. You can go through arbitration while still employed, needing only a few days off.
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If you are still working at the original company, as long as the company dares to cut your salary or delay payments, keep evidence and apply for arbitration; you will win and receive both salary and compensation.
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Additionally, arbitration can be expedited, so do not withdraw your lawsuit if you have not received payment.
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If your salary is cut or payments are delayed, you can immediately resign, look for a new job, and mine for opportunities.
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As long as the original company does not go bankrupt, both work and compensation can be obtained. A special reminder is to pay attention to judicial compensation. For what evidence is needed, you can go to the local labor arbitration team and get a list of required evidence. I hope this information is useful to everyone.
Summary of layoff experiences:
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When communicating with HR about decision-making matters, please first take the following two steps:
- Ignore their threats and say: I need to think about it.
- Call 12348, a national free legal consultation service, to inquire about labor arbitration and other matters.
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Absolutely do not: voluntarily initiate a resignation application.
- Under no circumstances should you propose a transfer application!
- Once proposed, there will be no truth left!
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Legal coercion refers to threats made with a knife! Therefore, all your subsequent evidence will be used against you!
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Overtime and other matters will also be of no use!
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Dispel rumors about common HR threats:
- XX behavior caused significant losses: As long as it did not cause the company serious losses or economic damages, it does not constitute gross negligence, and the law will not support their claims.
- There is no internet credit platform, no internet credit platform, no internet credit platform!
- Termination compensation and year-end benefits are two different matters!
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In summary, as long as you have not caused the company actual significant losses, the company has no reason not to give you your year-end bonus and to terminate your employment.
I am involved in internal legal education for workers and have compiled common legal issues based on the current evaluation environment of the largest companies. Those in need can refer to this to combat unscrupulous capitalists.
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How much compensation is standard, and how are three-phase women compensated?
- If reported to the labor department, the economic rating disclosed by listed companies is N+1 months of notice pay. If it is not the employee's fault, the company unilaterally terminates the labor relationship, except for the first labor contract not being renewed, which is N+1; otherwise, both parties can negotiate N+1, or else compensation is 2N or continue to perform the labor contract. Women in three phases are not allowed to be evaluated.
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Is there a cap on compensation? How is it calculated for thousands of people? Is it taxable?
- According to Article 47 of the Labor Contract Law, compensation is calculated based on the average salary for the 12 months prior to the termination of the labor relationship, including the previous 12 months' salary, bonuses, pensions, allowances, and all pre-tax income that can be counted as salary. If it is high, it is capped at three times the average salary of employees in the previous year in the respective city, with a maximum compensation period not exceeding 12 years, i.e., N ≤ 12. There is no cap for those earning below the average wage. According to Article 87 of the Labor Contract Law, compensation is double the compensation amount, i.e., when the employer illegally terminates the labor contract, 2N ≤ 24. Similarly, low wages are not capped. As for +1, it depends on whether there was a one-month advance notice. Details depend on local regulations.
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How is compensation handled during work-related injuries or non-work-related medical emergencies?
- During work-related injuries, non-work-related medical stability cannot be unilaterally evaluated by the company (both parties must agree). After recovery or the medical period ends, it follows normal labor contract regulations, but a 30-day advance notice is required. Specific medical period regulations vary from three months to two years depending on the employee's condition.
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If the company unilaterally terminates the labor relationship, can the year-end bonus be claimed?
- Whether the year-end bonus can be claimed depends on the specific content in the labor contract. For example, if the contract states a two-month year-end bonus, it can be calculated based on the actual working time for the year. If the contract states 0-2 months and includes certain clauses, the specific content and the company's public terms must be reviewed, as this falls under the company's discretion, and arbitration decisions may be difficult to support. However, if the company has clearly informed you about this year's year-end bonus or has explicitly stated that you can receive a corresponding level of year-end bonus according to relevant systems, then with sufficient evidence, support can be obtained.
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Can non-compete agreements be lifted? How long should they last? How is compensation calculated?
- Once signed, the timing of lifting the non-compete agreement is determined by the company, with a maximum duration of two years. If the company fails to pay compensation for more than three months, you can request termination. The minimum compensation is 30% of the salary, calculated according to the agreement.
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What is the scope of non-compete restrictions? Will companies not on the list be affected?
- Based on public case studies, whether restrictions apply depends on whether there is a substantial competitive relationship between companies, not just based on business license scope. In simple terms, companies not on the list may still fall within the restriction scope, and companies on the list may not necessarily be restricted.
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How to handle annual leave? Can it be taken before terminating the labor relationship?
- Annual leave can be taken before terminating the labor relationship; if the company does not allow it, you can request 200% of the salary instead.
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What to do if the company requires signing an agreement for various reasons and refuses to issue a resignation certificate if not signed?
- The company cannot refuse to issue a resignation certificate for any reason and cannot impose any penalties or evaluations on the resignation certificate. Just contact labor inspection.
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Can the vested portion of stock options be realized, and what about the unvested portion?
- Currently, there is a legislative gap regarding stock options in China, and judicial practice recognizes it as a labor dispute. The realization of unvested portions depends on the specific content of the contract. (For example, if there are remaining days until vesting and the company terminates the employee, this situation can be supported with evidence.) The vested portion can be claimed. However, if some companies are structured as VIEs, where the labor contract is with a domestic company but the registered entity for the options is in the Cayman Islands, labor arbitration may not resolve the issue and will likely enter litigation. Since the registered entity is in the Cayman Islands, it also involves issues with delivering judicial documents outside the jurisdiction. If your options are highly valuable, it is advisable to gather evidence; if there is not much money involved and you do not want to go through the hassle, consider letting it go. Once it involves cross-border issues, it can be complicated, as seen in the Meituan case, which has been unresolved for over five years.
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How to obtain arbitration proof?
- Regularly preserve relevant evidence to form a chain of evidence. Try to keep electronic data intact, and for the collection of crucial evidence, you can seek notarization from a notary office.
The law is the law; although there may be gaps with reality, it serves as a guideline. In real life, we cannot fully execute according to the law, but doing most of it is acceptable. However, for workers, they should stand up to defend their rights and not endure passively. While we need to accept some compromises, we should not retreat from our rights repeatedly.
Social Security:
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Individuals can pay social security through flexible employment: Note that you must have a local household registration or have paid social security for over ten years, and you can only pay for pension and medical insurance. If you have a household registration from another area, you can only pay for pension, and medical insurance will be interrupted. If you meet the requirements, the operation is simple:
- First, ensure your previous company has stopped your insurance.
- Use the app to register as a flexible employee for social security.
- Then search for "social security payment" on Alipay or other platforms; you will receive a notification at the end of the month, and then you can pay.
This is the online method; offline, just remember to bring your documents to the "Citizen Center" for processing.
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Paying through a company: This is equivalent to joining a company, so all five insurances and one fund can be paid. However, the state has policies for agency payments, and many options on Taobao have been taken down. You can consider this based on your situation.
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Should unemployment insurance be applied for? First, I want to tell everyone that if you are paying social security through an agency, it is advisable not to claim it, as you will not be able to. If you are paying social security yourself, as mentioned above, you need to have a local household registration in Hangzhou, and you can only pay for pension and medical insurance. I am not sure if you can claim it if you pay yourself; I have not tried it, but you can give it a shot.
Unemployment benefits have two types:
- If it states "voluntary resignation" → Unemployment allowance, 912 yuan/month.
- If it states "involuntary resignation" → Unemployment insurance, 1824 yuan/month.
You can first ask HR about your resignation status; generally, a "layoff" resignation certificate is considered "voluntary resignation." In our company, if needed, you can ask HR to issue a termination notice again.
Calculation principles for the months of application:
- If the payment period is over one year, you can receive two months of unemployment insurance;
- If the payment period is over one year, for every eight months beyond that, an additional month of unemployment insurance is granted, with any remainder exceeding four months but less than eight months calculated as eight months, but the maximum benefit period does not exceed twenty-four months.
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