leaf

In addition, the company stopped paying my salary a few months later, cutting off my only source of income. I began to try to learn the Labor Law and related legal knowledge, reviewing and organizing written materials similar to my case, in order to take the company to court and reclaim the dignity and rights I deserved as a worker.

In labor relations, the company holds a position of advantage, while workers are in a weaker position. Especially when facing a gang of thugs composed of bosses, HR, and legal personnel, one can feel even more passive, angry, confused, and helpless. I hope everyone can remain calm in the face of the company's malice, which is the original intention behind writing these words.

On-the-job Arbitration or Off-the-job Arbitration#

I used to think that in order to raise a labor dispute, one had to leave the job first, but later learned from the internet that my case was more suitable for on-the-job arbitration, which can be applied for at any time during employment. So I attempted to initiate on-the-job arbitration. During the arbitration period, I could continue to work and also had the opportunity to gather as much evidence as possible. Since the company revoked my office access, I no longer needed to clock in at the company.

Compared to on-the-job arbitration, choosing off-the-job arbitration is the most common situation, but the space for fixed and collected evidence is limited, making it suitable for simpler cases. It is important to note that off-the-job arbitration has a time limit of one year. This means that after a labor dispute occurs, one must file within one year from the date the labor relationship is terminated (the day of departure). Otherwise, neither arbitration nor litigation can be pursued.

Labor and Personnel Dispute Arbitration Flowchart (Source: Attachment Materials)

Solutions for Employees Unable to Provide Resignation Certificates#

If the labor contract with the company has been terminated, but the company is uncooperative, what should we do if we cannot provide proof when starting a new job?

Normal Legal Channels#

According to legal provisions, employers are obligated to issue a resignation certificate when terminating a labor contract. Therefore, we can call the local labor inspection team to file a complaint or request the company to issue a resignation certificate and compensate for the resulting losses through labor arbitration. However, this process can take some time.

Relatively Simple Solutions#

Although we cannot provide a resignation certificate, if the labor contract with the previous employer has been objectively terminated, there is no legal barrier to the company hiring us. We can provide relevant proof of the termination of the labor contract with the original company, such as: the "Resignation Application" submitted to the original company, "Work Handover Records," "Social Security Reduction Proof," etc.

We can also issue a "Letter of Commitment" to the company we are about to join:
I, A, ID number: xxx, solemnly promise to Company B that I have terminated my labor contract with Company C. If I make false commitments and cause any adverse consequences to Company B, I will bear all responsibilities. Signed: Promisor (signature), year month day.

What to Pay Attention to Before Filing Labor Arbitration#

I would like to share a piece of advice I received from a lawyer before arbitration: when preparing the requests in the "Arbitration Application," write down everything you can think of (unpaid annual leave, overtime pay, performance bonuses, etc.), and clearly detail the calculation methods for each item. Then, gather evidence corresponding to the claims and reasons stated in the requests.

The arbitration committee may not support all claims made by the parties, but anything not included in the requests will certainly not be supported.

I have summarized the key points of the precautions as follows:

1. Confirm that you have signed a formal labor contract with the employer, excluding labor contracts, labor dispatch contracts, etc., and confirm whether you have retained all original contracts since employment.
2. If a labor contract is signed, confirm whether the contract clearly stipulates salary conditions, salary composition, job title, job content, start date, and work location.
3. Keep all correspondence emails and WeChat chat records related to communication and negotiation with the company.
4. Organize the existing evidence you have and make a list.
5. Labor arbitration is a necessary preliminary process; you cannot directly file a lawsuit in court.

Raise Legal Awareness and Be Aware of Legal Risks#

When encountering sudden job changes or work arrangements, such as job transfers, relocations, or standby, be sure to pay attention to the legal risks involved. Do not sign any written materials; workers have the right to refuse any unreasonable or illegal actions by the company. If there is room for negotiation with the company, try to strive for a result that is not lower than your psychological expectations. However, if the company wants to lay off employees and the HR talks to you without sincerity or proper communication, trying to manipulate your mindset, do not hesitate to take up legal weapons.

The law is a tool that every citizen can use to protect their rights. As an ordinary worker, I believe that besides evidence and litigation strategies, the most important thing in protecting rights is the courage and determination to fight for them.

Differences Between Economic Compensation (N) and Economic Damages (2N)#

A common question is: "If an employee is dismissed by the company, should they be compensated 2N or N+1"?

Economic Compensation: This is what we commonly refer to as "N." "N" represents the length of service and is used to refer to economic compensation in the Labor Contract Law. The calculation method is: Economic Compensation = Length of Service x Monthly Salary.
"Length of Service" also called service years, is the basis for compensation and damages. For one year of service, one month’s salary is paid. For less than six months, 0.5 months of economic compensation is paid; for more than six months but less than one year, it is calculated as one year.
"Monthly Salary" refers to the average salary of the worker in the 12 months prior to the termination or end of the labor contract (including bonuses, performance pay, year-end bonuses, and other entitled income).

Economic Damages: This refers to punitive compensation arising from the company's "illegal termination" of the labor contract, calculated as twice the "N" in economic compensation, which is "2N." If there is a situation of illegal termination,

As far as I know, the vast majority of companies, including large ones, do not follow the rules and do not execute according to legal standards. Companies with basic legal awareness, when wanting to lay off employees, will try to avoid "illegal termination" of labor contracts. Therefore, generally speaking, cases of "2N" are becoming increasingly difficult to fight, while employees facing illegal termination of labor contracts during the three periods (pregnancy, maternity, breastfeeding) can be relatively simpler. Companies tend to prefer to operate within the legal framework of "mutual termination."

The Labor Contract Law only stipulates that the minimum standard for "mutual termination" is "N," and additionally "N + 1," where 1 refers to an extra month's salary as notice pay (for immediate termination). Beyond that, "N + 2" or "N + 3" has no legal basis. On the basis of N, there are no legal restrictions on how much the company wants to pay additionally, as long as both parties agree, "N + any number" is possible.

For example, if a company wants to lay off employees and negotiates with you, but you do not agree, if the company insists on laying you off, claiming that your performance is unsatisfactory, and unilaterally terminates the labor contract, this is illegal termination, with a minimum of "2N." Of course, labor relations are complex, and companies can find many reasons to terminate labor contracts. If you want to pursue "2N," you need to provide sufficient evidence to prove that the company's actions are illegal to have a chance of obtaining "2N."

Here are some common situations regarding "2N" that I have organized:

Effective Learning Tools for the Labor Law#

China Judgments Online#

China Judgments Online (referred to as "Judgment Online") is the official website hosted by the Supreme People's Court, mainly aimed at publishing effective judgments from courts at all levels across the country to promote judicial fairness and transparency.

This is one of the tools I use most frequently in my daily life and is a very practical reference for judicial practice. The website provides a wealth of research materials and data, allowing searches for first-instance, second-instance, or retrial judgments from courts across the country, with many detailed options.

Although labor arbitration decisions are not publicly available and only parties and their agents are allowed to view them, we can still see some arbitration information from publicly available judgments of others, such as the claims and reasons of the parties.

We can use the Judgment Online to query and study previous cases, understand local legal trends, and analyze judicial standards. For example: what are the points of contention between workers and companies, which claims and evidence were supported by the court, why they were supported, why they were rejected, and how the judge viewed the issues in the closing arguments.

Xiaohongshu#

Because many people on Xiaohongshu share their experiences related to labor arbitration in the form of notes, and many lawyers also share case handling experiences and legal knowledge on the platform, I find it very suitable for searching for high-quality information, doing homework in advance, and verifying information from multiple sources to avoid unnecessary detours.

China Legal Quick Reference Handbook#

China Legal Quick Reference Handbook is an open-source project sourced from the national laws and regulations database. The author of this project has integrated and added search functions to the database, with a clean layout that is simple and convenient to use, making it very suitable for daily queries and learning. The author only provides a mobile version (iOS, iPadOS) and a web version, and does not provide a computer version, but I can also install and use it on my M1 MacBook Pro through the App Store.

For labor disputes, it is recommended to mainly focus on the "Labor Law of the People's Republic of China" and the "Labor Contract Law of the People's Republic of China."

Related introduction to the China Legal Quick Reference Handbook Download link for the China Legal Quick Reference Handbook

How to Find a Reliable Lawyer#

By studying judicial cases and recent publicly available labor dispute judgments in the local area, I learned some basic knowledge of labor law and began to try to sort out my case situation, hoping to receive some professional advice from a lawyer. First, let me mention two common misconceptions about finding a lawyer to represent a case.

Misconception 1: The larger the law firm, the better; the more famous, the better.#

Famous large law firms generally serve large companies, while labor cases are usually small cases with low stakes and not profitable.

There are specialized fields, and not all lawyers are good at handling labor arbitration cases. Therefore, the correct approach is to find law firms that primarily handle labor dispute cases or lawyers who mainly represent labor disputes.
This can be done through acquaintances (such as friends, colleagues, family) for recommendations, which provides a certain level of trust, or by searching on Xiaohongshu to see if other people have chosen lawyers with good reputations and many cases.

If a lawyer's resume shows that they specialize in many fields, that may not be a good thing. What we need are lawyers with more experience related to labor disputes in their resumes.

Misconception 2: Once you pay a lawyer to represent you, you can leave everything to them.#

Although our labor dispute cases are small and not profitable, they can still be quite complex. They require a lot of time for research, preparation, and court appearances, as well as running arbitration or court processes.

Lawyers are the same. As legal professionals, they provide specialized legal assistance, but they do not replace you in handling all related matters. Evidence collection and negotiations with relevant departments need to be done by yourself, while lawyers provide guidance during this process. Lawyers can help strive for the best results, but they cannot eliminate all risks.

As parties involved, we know our company and our situation best. During the trial, judges will inquire in detail about every detail, which is why it is important to take the trial seriously and participate personally. To reduce the risks involved in litigation, we need to communicate and discuss with lawyers, clarify our thoughts, organize evidence, and prepare adequately so that we can respond smoothly during the trial without missing key points due to nervousness.

Through these two misconceptions, we can summarize this part:

1. The importance of professional fields: We need to consider whether the type of our case matches the lawyer's area of expertise.
2. Choosing the right law firm and lawyer: Choose lawyers with a good reputation and positive feedback.
3. The role of the lawyer: Hiring a lawyer does not mean you can completely let go; the lawyer's role is to guide and strive for the best results, not to replace you in handling everything.
4. The participation of the parties involved: As parties, we should have a deep understanding of our case and actively participate in trial preparation, communicate fully with lawyers, organize evidence, clarify our thoughts, and minimize litigation risks.

One Way to Find a Lawyer: China Legal Service Network (12348 China Law Network)#

This website, built by the Ministry of Justice, officially launched on May 20, 2018. The site integrates and collects "legal service organizations" and "legal personnel data" nationwide.

We can choose law firms or lawyers within it, or query a law firm or lawyer (you can check the lawyer's practice license number) that you learned about from other channels.

What I Tried to Find a Lawyer#

In total, I consulted with three lawyers (not including legal aid). The path I sought help from lawyers was: online consultation with Lawyer A (paid) — offline consultation with Lawyer B (paid) — offline consultation with Lawyer C (paid).

Online Consultation with Lawyer A#

Initially, I tried to find a lawyer for paid online consultation.
Although the paid price (168 yuan) is much cheaper than offline consultations, the trade-off is that there are limits on the number of questions, word count, and time (only text communication is allowed, no voice). If you ask questions without the lawyer understanding the relevant background, this will lead to the lawyer being unable to provide reasonable suggestions due to lack of context.

So I tried to simplify my text expression as much as possible, dividing the questions into: event background (timeline), my current situation, and core issues, and made it into an image to send to the lawyer. The lawyer answered my questions one by one, but I assessed that the solutions proposed by the lawyer carried a relatively high risk, so I did not adopt them.

Offline Consultation with Lawyer B#

Through a lawyer friend’s introduction, I contacted a lawyer who primarily handles labor dispute cases, and the law firm was not too far from me, so I scheduled a time for an offline meeting. I gained a lot from this meeting; the concerns I had were mostly resolved, and I felt more at ease, although my situation was relatively passive, and I needed to see the company's next move.

Offline Consultation with Lawyer C#

Lawyer C was recommended by a colleague and has extensive experience with labor arbitration cases. After comprehensive consideration, I chose Lawyer C to represent my first-instance case.

Regarding lawyer consultation fees, in Beijing, it ranges from 200 to 3000 yuan per hour. I consulted Lawyer B offline twice, each time at 500 yuan per hour.

Regarding lawyer representation fees, they are charged based on a percentage of the case amount, and the fees vary at different trial stages (arbitration, first instance, second instance).

Avoiding Detours: Preparing Evidence and Recording Techniques#

Preparing Evidence#

One-click Download of All Materials Required for Arbitration#

Including templates for labor arbitration filing applications, evidence exchanges, and materials for court appearances, which can be downloaded from the bottom of the Beijing Chaoyang District People's Government website by clicking "Click here to download related attachments." The document also includes relevant processing procedures and precautions, which are very comprehensive and can be consulted in detail.

Self-service Printing of Bank Salary Statements#

I brought my original ID card directly to the self-service machine at a nearby bank to print, and I could operate it myself on the machine, saving the process of taking a number and queuing at the counter. If there are any issues while using the bank's self-service machine, I can ask the bank manager nearby for help, which is very efficient. It is recommended to understand the relevant fee standards and prepare in advance; some banks may limit the number of free prints per month, and exceeding that will incur charges per sheet. My salary is distributed by the company through three banks (Beijing, Transportation, and Merchants), so I need to print statements from all three banks. The self-service machines at Beijing Bank and Transportation Bank do not impose printing limits on statements, but I remember that the printing limit at Merchants Bank is 4 sheets per month, with charges of 20 yuan per sheet for exceeding that.

While operating the bank's self-service machine, I summarized three key points: select the time range, filter transaction types, and include the bank's stamp.

Select Time Range: Choose the range of statements to print based on the time involved in the labor dispute, selecting by year and not crossing years.

Filter Transaction Types: Check the transaction type (salary) in the filter column. The purpose of specifying filtering conditions is to make it clear when viewing the bank statement, so that the salary payment situation is clear at a glance; we only need proof of salary statements, not other transaction records.

Include Bank Stamp: The salary details printed by the bank's self-service machine generally default to include a stamp, but some banks require checking relevant options before printing a stamped statement. The stamp is usually called "Receipt Special Seal" or "Accounting Business Seal." Be sure to check whether the printed statement includes the bank's stamp; if there is no stamp, the evidence is invalid.

My bank statement stamps (left: Beijing Bank; right: Transportation Bank)

Using iPhone Notes to Scan Copies of the Labor Contract#

Since the printed paper is in black and white, if I directly take a photo of the "Labor Contract" with my phone, some information may become unclear. Here’s a convenient tip: use the "Scan" function in iPhone Notes to scan the "Labor Contract" page by page into a PDF file and then print it (this is clearer than direct printing and more convenient than photocopying). This can avoid the situation of having to redo materials due to submission issues (don’t repeat my mistakes).

The "Scan Document" function in iPhone Notes

Essential App for Workers — Rights Guardian#

This is an electronic evidence collection tool with legal efficiency launched by the National Intellectual Property Administration, widely used by legal professionals. It can generate tamper-proof electronic evidence with timestamps. The evidence collection scope includes: taking photos, recording videos, audio recording, screen recording, and web pages. Real-name authentication in the app allows normal use.

If some evidence is particularly important, this tool can be chosen. For example, before the company disabled my office software, I used the screen recording function of Rights Guardian to secure evidence of the organizational structure, personal information, and other situations. The law stipulates that the burden of proof lies with the party making the claim, so when initiating arbitration or litigation, I have the foundational electronic evidence saved through Rights Guardian.

Rights Guardian can largely replace traditional notarized evidence collection methods. When used correctly, it can make evidence collection faster and cheaper. However, it is ultimately just a tool for evidence collection; while the authenticity of the evidence is not in question, whether it will be accepted and how much effect it will have is a matter that requires deep consideration. If unsure, it can be used under the guidance of a lawyer, as every evidence collection incurs a fee.

Rights Guardian official website

[Rights Guardian Evidence Collection - Recording and Audio Evidence Collection Tool Introduction][Rights Guardian Evidence Collection - Download Link]

Recording Techniques#

1. Timing: Recording evidence is better done early rather than late.
2. Equipment: Regardless of whether it is a face-to-face meeting, recording should be done throughout, and any device that can clearly capture the conversation can be used. If it is a phone call and you are using an iPhone without a call recording function, you can borrow another phone to record.
3. Operation: The phone can be set to airplane mode to prevent sudden incoming calls from interrupting the recording.

Precautions#

Recording evidence is often not accepted by arbitration courts, mainly because the conversation content in the recording lacks key information such as the legal entity of the company, Zhang San, and the head of human resources, Li Si. Recording is an added bonus; it can be better, but if useful information cannot be obtained, it does not matter.

The purpose of recording is to clarify the facts through conversation, facilitating further evidence collection. Do not threaten or intimidate the other party (maintain a friendly attitude), otherwise, the evidence will be invalid. It is worth mentioning that the purpose of recording evidence is to support other related evidence, forming a chain of evidence, and cannot be used alone.

In the conversation, not only should the questions be clear and specific, but the identity of the speakers should also be clear, with content that is objective, truthful, and coherent. It can be helpful to clarify your thoughts first and then write them down as written materials, practicing a few times before the call.

Submitting Recordings#

It is important to do two things when submitting recordings as evidence: first, ensure that the recording is unedited or forged, that the content has not been altered, and that there are no doubts about the complete audio file burned onto a disc; second, organize all dialogue content into written materials.

Written version of the recording content: It is recommended to include the following information: time, location, equipment, duration, and participant information (my name, title, and name of the company head). Finally, mark the location of the recording file in the "Evidence Directory," and submit the recording disc and written version along with other evidence.

Additionally, the original recording file and carrier (such as the phone) should be kept for verification during the trial.

My Recording Communication Outline#

1. Confirm the identities of both parties.
2. Confirm relevant facts.
3. Maintain a friendly negotiation attitude and clearly state your claims.

My Pre-call Recording Content#

1. Introduce myself and state the facts into the recording: I am xxx, ID number xxx, I have been at xxx company, xxx department, in the position of xxx since xxx year xxx month xxx day.
   Starting from xxx year xxx month xxx day, the company xx (briefly state the facts), and now I am going to call the HR director xx (full name) of the company to negotiate a solution. Their phone number is xxx.

Sample Evidence Material List ([Source](Attachment Materials))

Seeking Free Legal Aid#

Legal aid is more like a special service set up for "special groups," mainly serving migrant workers or older individuals.

The Chaoyang Labor Arbitration Committee has also set up a legal aid consultation window, where you can take a number at the service desk and queue, located in the same hall as the arbitration filing window. Perhaps due to the complexity of my case, or the staff at the window not having much time to help me analyze deeply, I handed over my evidence to the other party, trying to understand the policies and judicial standards for my situation, but I did not receive useful information or guidance.

Therefore, everyone can try to consult, but do not have too high expectations for legal aid. Also, do not trust lawyers who actively hand out cards at the arbitration committee's door; I have never seen a licensed lawyer needing to solicit clients. These lawyers on the cards are likely not real lawyers and are mostly unreliable, with many people being scammed.

My Complete Arbitration Process#

During the arbitration phase, I chose to go through the entire process myself, while I entrusted a lawyer to represent me in the first-instance litigation.
One reason is that I have lived in Beijing for many years and have had arbitration experiences.
Another reason is that a previous foreign landlord refused to return my deposit and boldly claimed I could sue him in court. So I followed his advice and wrote a lawsuit to the court, gaining some experience in civil litigation.

The filing and evidence exchange processes for labor arbitration are somewhat similar to court litigation. Therefore, I believe that arbitration is much simpler than litigation when adequately prepared. My labor dispute case is relatively complex and requires court review.

Taking Beijing Chaoyang District as an example, one can make an appointment in advance on the Beijing Human Resources and Social Security Bureau's official website. After making an appointment, a text message will notify you of the time to submit filing materials offline. During the pandemic, it took over a month to wait after making an appointment on the official website; the current waiting time is uncertain.

You can also choose to go directly to the site to take a number for filing (this method is more recommended and more efficient). It is advisable to prepare materials and arrive at the entrance before 8 a.m. to queue and obtain a number before 10 a.m. Otherwise, due to the large number of people, you may not be able to file on the same day. I successfully filed twice during and after the pandemic, targeting arbitration requests for different time periods in labor disputes. Now that the pandemic is over, the process has been simplified significantly, making it relatively easier.

Arbitration Location#

Beijing Chaoyang District Labor and Personnel Dispute Arbitration Court
Phone: 010-87983310
Address: Building B and C, No. 15, Courtyard 5, Jiangtai Road, Chaoyang District, Beijing

Preparation Materials#

• Original ID card
• ID card copies x 3
• Application form x 3
• Address confirmation letter x 1

It is advisable to check the relevant materials and back up the electronic versions to a USB drive. It is best to bring a laptop; if the written materials do not meet the filing window's requirements, you can modify them on your computer immediately. If there are any missing materials, you can also pay to print them in the printing area next to the service desk.

Filing Process#

1. Go to the main service desk to receive and fill out the address confirmation letter, and receive the initial review number (you can print it in advance and directly receive an A-prefixed initial review number).
2. After the initial review, you will receive a B-prefixed filing number and wait for your number to be called.
3. The staff at the filing window may ask you to fill out a labor mediation form. (This step can be skipped directly to save time, as the arbitrator will mediate again before the hearing.)

Completing the Filing#

After successfully filing, the window will issue written materials such as evidence notification on-site. After filing, there is a 30-day mediation period, during which staff will call both parties (the company and the worker) to inquire whether they agree to mediation. Next, you will receive a notification email from the Chaoyang Arbitration Committee regarding the evidence exchange, as well as a text message reminder.

Evidence Exchange#

It is important to note that the evidence exchange time for both yourself and the company is the same, and you must arrive at the designated window within the specified time to handle the evidence submission and exchange; it must be done by yourself, or else you will miss the opportunity. After submitting and signing for confirmation, you can leave the venue. If you encounter people from the company on-site, you should also ignore them.

Waiting for the Hearing#

Next, just wait for the hearing notification. On the hearing day, you need to bring the original ID card and original evidence. Pay attention to the hearing time; if you are late on the hearing day, it will be regarded as a withdrawal of the case. The arbitration hearing is relatively simple and will not be as detailed as a court trial. The arbitrator mainly inquires about the information confirmed by both parties, such as the dispute time, reasons for evidence, social security status, salary situation, etc.
Arbitration cases are assigned to different arbitrators randomly. I filed at the end of 2022, had the hearing at the beginning of 2023, and did not receive the judgment until October 2023. Everyone can contact their arbitrator more to inquire about the progress.

Arbitration Results#

Many friends around me believe that receiving a labor arbitration judgment that supports relevant requests is a signal of victory, but arbitration mainly focuses on mediation and does not maximize the protection of workers' rights. For example, the law stipulates that the minimum standard for mutual termination of a labor contract is N; assuming N is 10 months, the arbitrator will negotiate with the company and the worker, and after bargaining, the final N may be 6 or 4, or even lower. While it seems to reduce the time cost of workers' rights protection, the actual biggest beneficiary is the company, which attempts to achieve the goal of layoffs through malicious, targeted, and insulting means at a low cost.

Therefore, labor arbitration is only the starting point for workers to protect their rights; they must also go through first-instance litigation and second-instance litigation. Even if they eventually win the lawsuit, they may still face the situation of applying for enforcement in court.

The theme of "layoffs" is the first issue. To unify the understanding of the concept of "layoffs," we emphasize a definition at the beginning of the article: Any legal act of an employer unilaterally terminating a labor contract in advance is considered a layoff.

Corporate layoffs can be categorized into three types based on motivation: economic layoffs caused by market factors or business management issues, structural layoffs resulting from changes in products/business lines and organizational structure, and optimization layoffs aimed at improving employee efficiency and average capability. Currently, many companies tend to use the latter two to gloss over economic layoffs during public relations.

In today's world, where layoffs have become almost commonplace, the uncertainty that follows is even harder to accept. For many workers over 30, the opposite of layoffs is the "responsibility item" for their families. A 39-year-old former employee of a major internet company, Li Bao, said that the biggest pressure after being laid off was the mortgage, "At 39, which company still wants a 39-year-old employee? The worst outcome is selling this house." But if he really wants to sell a house in Beijing, he must have lived there for at least five years.

Workers are struggling, and companies are struggling too. "In the face of a global economic recession and declining consumer capacity, companies should change their thinking and business policies, shifting from pursuing scale to pursuing profits and cash flow to ensure survival through the crisis in the next three years. Surviving should be the main agenda, with all marginal businesses shrinking and closing." — In 2024, it will be less than two years since Ren Zhengfei's internal talk of "passing the cold air to everyone," and layoffs continue.

Peeling away the euphemisms of layoffs ╱ 01

Why do companies "hire while laying off"? ╱ 02

Capture signals early and be prepared ╱ 03

Psychological preparation: the extreme situations you might encounter ╱ 04

When layoffs hit you ╱ 05

Peeling Away the Euphemisms of Layoffs#

Economic layoffs are usually caused by market factors and business operations, and are currently the mainstream type of layoffs. Unlike the generally optimistic years of the industry, today, regardless of whether your performance is top-tier or subpar, personal ability has been pushed behind the influence of the broader environment; what determines your retention is more the company's survival strategy.

However, companies do not want to lose face — large-scale layoffs are seen as a sign of decline by the public. Thus, the expression "layoffs" has become increasingly euphemistic, attempting to play word games to maintain dignity. A common expression regarding layoffs is "optimization." Literally understood, optimization means finding employees who do not fit the team's development to achieve organizational optimization. Under workload and performance indicators, the saturation and effectiveness of employees' work can be quantified and assessed.

"Optimization" was originally a routine operation for companies, but in recent years, this term has been increasingly used to gloss over layoffs due to poor business performance, while employees, as the weaker party, can only passively be "optimized." As one netizen commented, "In the past, being optimized meant the employee was not good enough, but now being optimized is more about the company's reasons."

Companies like JD and Bilibili have even coined a more dignified term — "graduation."

"Organizational restructuring" often accompanies layoffs, but sometimes it may mainly be due to the merging of business areas or the maturity of the commercial structure.

In 2021, ByteDance merged the original KA (National Key Accounts), LA (Local Key Accounts), and SMB (Small and Medium Business) business lines in its commercialization sales system, dividing it into seven new business lines based on the specific industries of ByteDance's advertising clients. The strategic changes behind this also adjusted the company's organizational framework and personnel structure.

Another situation is that the maturity of the business structure leads to a corresponding decrease in the demand for operational maintenance personnel. Recently, the office software Feishu announced large-scale layoffs, which falls into this category. Wang Yuan, Vice President of NetEase Group, Executive Dean of Hangzhou Research Institute, and General Manager of NetEase Shufan, believes that Feishu can meet demand with 1,200 people. "Most custom development and implementation delivery can be outsourced or done through the ecosystem because Feishu's product core is relatively focused, and customization occurs more in areas like interfaces, docking, integration, and plugins."

Why Do Companies "Hire While Laying Off"?#

"Short of talent, but not short of people" — some industries are showing a "tale of two cities." For example, while some new energy vehicle companies are laying off employees and cutting costs, others continue to have a high demand for quality talent. The "2023 Talent Migration Report" released by Maimai shows that from January to October 2023, the new energy vehicle industry ranked first in talent scarcity with a talent supply-demand ratio of 1.77, meaning there are 1.77 people competing for each position (the overall talent supply still exceeds demand). During the same period, the new energy vehicle industry also ranked second in the "talent inflow/outflow ratio" at 1.33, second only to the new energy industry in its ability to attract talent.

According to Zhang Xiang, Director of the Vodafone Digital Automotive International Cooperation Research Center, the high turnover rate of talent in the new energy vehicle industry, represented by NIO, is related to changes in the employee structure of car companies. In the early stages of market expansion, a large number of market, marketing, and R&D personnel are needed; however, after the brand is established, the demand for advertising and planning personnel may decrease. After technological accumulation and product stabilization, there may also be a trend of hiring "new R&D personnel" to replace senior "old R&D personnel" to cut costs.

Of course, the most realistic and brutal situation is that companies are meticulously calculating and want to eliminate some expensive, low-performing employees in favor of higher-performing or cheaper ones — the so-called "talent replacement," which is also an important reason for this "in-and-out" dynamic layoff.

Capture Signals Early and Be Prepared#

▼ First, look at the company's operational health from public information.

Before layoffs, there are usually some obvious signals. If you can capture the dangerous signals from these abnormal pieces of information early and prepare in advance, even if you are laid off, you can face it calmly with other offers in hand.

The reason for layoffs can be traced back to the company's inability to support certain project operating expenses, which leads to personnel reductions to cut costs — when discussing company operations, data is the most direct indicator.

From a macro perspective, employees in the new era should pay more attention to the data in the company's annual report, which is a necessary means to assess the company's situation from public information.

In the table below, we categorize methods for querying corporate annual report data from public channels based on whether they are listed or unlisted.

Although there is a lot of data on the reports, it is essential to focus on a few key figures and ratios, namely revenue, gross margin, expense-to-revenue ratio, total assets, inventory turnover ratio, and accounts receivable turnover ratio. Through these indicators, we can roughly outline the operational level of the company we are in.

Specifically, the size of different revenue amounts determines the sales scale of the company; comparing this year's, last year's, and the year before's revenue can reveal the company's development trend.

Gross margin should generally be viewed alongside inventory turnover ratio; fluctuations in gross margin may be caused by changes in the product structure sold. There are two scenarios: gross margin and inventory turnover ratio rise and fall together, or one rises while the other falls. If gross margin decreases while inventory turnover ratio increases, there may be suspicion of falsified reports, as the company may have used excessive cost transfers to lower gross margin, thus affecting the inventory cycle rate.

Expenses can be further divided into fixed and variable costs; fixed costs usually refer to rent and discounts, while variable costs refer to business entertainment expenses, travel expenses, etc., which are related to revenue. The more revenue, the higher the variable costs, and typically, comparing variable costs to revenue helps determine whether this expense is too high or too low.

Total assets can be linked to revenue; for example, how much total assets are needed to leverage 10 million in annual revenue. Common components include cash, accounts receivable, inventory, other receivables, and fixed assets.

Inventory turnover ratio is the ratio of the company's operating costs (cost of goods sold) to the average inventory balance over a certain period. For instance, with 12 million in revenue and 1 million in inventory, the inventory turnover ratio is 12, meaning it takes one month for goods to be bought and sold (which can be compared to the actual turnover rate). Generally, the higher this indicator, the smoother the company's inventory sales, and the faster the conversion to cash or accounts receivable.

Accounts receivable turnover ratio refers to the average number of times accounts receivable are converted into cash within a certain period. It reflects the speed at which a company collects payment for goods sold or services rendered, which is significant for the company's operational health and liquidity.

▼ Intuition Hidden in Micro Details

On a micro level, there are generally two types of precursors to layoffs: resource reduction and tightening of policies.

The former includes but is not limited to the cancellation of meal subsidies, reduction of weekly fruit supplies, and cancellation of commuting buses, among other employee benefits. In December 2023, Maimai CEO Lin Fan announced that the company would reduce salary benefits, stating that starting December 18, the company would cancel free meals and related subsidies, and the provident fund contribution rate would be lowered to 5% to ensure the company's sustainable and stable development.

The latter involves tightening recruitment scales and closely monitoring employee assessments to reduce personnel costs. In May 2024, JD Retail adopted new attendance regulations, requiring the number of employees present at workstations to be counted at 9:00 a.m. each day, and if the bus is late, proof must be submitted; to assess employee workload, those leaving work at 6:00 p.m. must undergo workload assessments.

According to a senior executive at JD, a WeChat group for proxy clocking in has emerged, where proxy clocking in costs 15 yuan per instance, and one person can clock in for up to 20 people, earning over 300 yuan a day.

Another sign, though not very accurate, but potentially related, is "office relocation." Moving to a cheaper rental area is a way for companies to alleviate financial pressure by reducing operational costs, but it also indirectly signals the possibility of future layoffs.

Psychological Preparation: Extreme Situations You Might Encounter#

▼ Cold Violence: Isolation, PUA

The essence of cold violence layoffs is the complete destruction of the psychological contract formed with employees.

Whether through forced expulsion or passive marginalization, companies actively implement the destruction of the psychological contract. Common tactics include not assigning work and not notifying employees of meetings; this snowballing isolation aims to distinguish "you" from "us."

A netizen on Xiaohongshu shared her experience of not receiving any work assignments or being invited to meetings for half a year, effectively being treated as a marginalized person. However, she found solace in studying psychology and marketing knowledge every day. This proactive coping strategy is worth learning from.

Cold violence layoffs can also manifest as workplace PUA. Workplace PUA refers to superiors manipulating individuals' behavior through psychological control. In the workplace, there is a default hierarchical relationship between superiors and subordinates, which is not entirely equal. This disparity can easily lead to neglect of equal dignity; if leaders do not pay attention or intentionally abuse this, it becomes a source of workplace PUA.

"I'm teaching you how to do things, not pushing tasks onto you," "Young people should endure hardships," "Learning more is never a bad thing," "Your abilities are so poor that no other company will want you." To discern whether these are PUA tactics or sincere criticism, pay attention to whether the other party seems to be pretending to care for you while providing pseudo-positive feedback to make you accept undesirable tasks; whether their response turns into criticism or even insults when your performance does not meet their expectations.

When PUA tactics are used in layoffs, employees whose psychological defenses are breached are likely to choose to resign voluntarily, saving the company from compensation costs, but potentially at the expense of the employee's mental and physical health. A graduate from Melbourne University told "Workplace Bonus" that she had always been seen as a good girl with a bit of a people-pleasing personality, but she had recently experienced severe PUA in her last two jobs, leading to mental and physical exhaustion, ultimately forcing her to resign.

▼ PIP, Negotiation for Dismissal

PIP is also a method for dismissing employees (though this method of dismissal seems to carry more contractual spirit), where managers develop a systematic plan for "improving work performance and capabilities within a certain period" based on areas where the employee needs development.

In companies implementing PIP, the targets are usually those already defined as "incompetent employees." According to Article 40, Paragraph 2 of the Labor Contract Law, termination can only occur when "the worker cannot perform the work, and after training or job adjustment, still cannot perform the work." Unfortunately, many companies do not provide training plans for improvement and lack positive PIP implementation, exacerbating the distortion of this method in workplace practice.

What should a standard PIP look like? Before officially starting PIP, companies should design relevant processes in advance, discuss thoroughly with employees, and retain necessary documentation to ensure the plan is implemented properly while effectively controlling risks. The PIP process generally follows these steps: performance review, improvement period, improvement training, improvement goals, and progress review.

Workers should pay special attention to the standards for passing and the handling of non-passing situations to avoid ambiguous expressions. Even if the worker ultimately fails the PIP performance assessment, according to Articles 40 and 46 of the Labor Contract Law, the company still needs to pay economic compensation to the worker.

A more direct method is negotiation for dismissal. "Your abilities are insufficient to perform your current job" — but whether the real reason is that simple requires employees to think critically: if indeed the employee has not met the KPI indicators agreed upon at hiring or assessment, or if their output is indeed generally lower than that of other employees, then they need to improve their work capabilities; however, if the company cannot provide sufficient evidence and reasons to prove it is an employee capability issue, then it is likely just trying to shift the blame to avoid potential economic compensation.

▼ "Violent Layoffs"

If negotiation for dismissal can be considered a decent method, then "violent layoffs" completely tear away the facade of the unequal relationship between employers and employees.

In 2019, an article titled "NetEase Layoffs: Security Forced Me, a Terminally Ill Patient, Out of the Company. My Nightmare Experience at NetEase!" circulated on social media, where the author described their five-year tenure at NetEase as a game planner and their experiences of being "forced, calculated, monitored, framed, and threatened," as well as being expelled by security.

This incident was the first instance in mainstream media reporting in the past five years to use the term "violent layoffs," prompting commentary from CCTV ("Can the hearts of the people still be gathered?").

Netizens' condemnation of NetEase's violent layoffs aligns with the public's general first impression of corporate layoffs: "heartless," "self-serving," "inhumane," "disgusting," "trash." Workplace Bonus found that since then, the term "violent layoffs" has rarely been used in domestic mainstream media reports, only being frequently mentioned in reports related to companies associated with Elon Musk (Tesla and the acquired Twitter).

However, this does not mean the true disappearance of "violent layoffs." From a definitional perspective, the term violent layoffs is an internet buzzword characterized by the illegal termination of labor contracts by companies. Whether it involves the company providing no buffer or handover time, directly confiscating computers and equipment, canceling accounts, or ignoring employees' emotions and health conditions, leading to verbal and physical conflicts, all fall under the nature of "violent layoffs."

▼ Salary Cuts as Layoffs

On July 3, 2024, a female employee of CICC passed away, and a manager at the Shanghai branch claimed it was due to "personal reasons," denying any second round of salary cuts and layoffs. However, another employee at CICC's headquarters stated that there were indeed salary cuts at the company, with some positions' salaries reduced to "30% of the previous amount."

As a direct regulation affecting workers' interests, the compensation system must follow democratic and public procedures when formulating or modifying it, according to Article 4 of the Labor Contract Law of the People's Republic of China. If the company has not discussed and proposed plans and opinions with the employee representative assembly or all employees, or has not negotiated equally with employees, then the company's salary cuts based on this system do not comply with legal regulations.

When faced with salary negotiation by the company, employees typically have the following options: if they are willing to continue working at the company, they can accept the salary cut; if they do not agree, the company will directly compensate according to the layoff procedures; another extreme situation is that the company does not want to compensate employees proactively, in which case labor arbitration procedures need to be followed.

▼ Fresh Graduates Being Breached

On April 23, 2024, it was reported that all Chinese fresh graduates hired by Tesla this year had their contracts unilaterally terminated, with compensation amounting to one month's salary. In June, a screenshot of a contract breach notice from GAC Aion's campus recruitment circulated online, and GAC Aion later issued a statement on Weibo clarifying that the news was false.

The situation of "fresh graduates being breached" is currently concentrated in high-tech industries (such as new energy manufacturing and software industries). These popular industries are highly competitive, and companies are looking to cut costs. From a cost perspective, laying off a fresh graduate only requires paying a few thousand yuan in breach of contract compensation, which is the "optimal solution" after weighing the options; on the other hand, high-tech industries have rapidly changing technology demands, and companies tend to prefer hiring talent that matches their expertise.

Another important reason is that both these companies and graduates tend to cast a wide net. To avoid being passive, companies often hire more fresh graduates than needed, allowing for comparisons to retain the most suitable talent.

Currently, there are no specific legal provisions regarding the employment rights of fresh graduates; the breach of contract by companies mainly relies on the tripartite agreement. Companies terminating the tripartite agreement must comply with the breach clauses, which generally stipulate a maximum of 5000 yuan.

If there are no breach clauses, it is difficult to determine the actual loss if the graduate has not started work; in judicial practice, courts will refer to Article 40 of the Labor Contract Law to require compensation equivalent to one month's salary, providing graduates with a one-month buffer.

When Layoffs Hit You#

▼ Compensation Standards Corresponding to Different Situations

We do not advocate that readers view the company with resistance and opposition when business operations are normal, but risk awareness must be given more attention during special periods. We find that to this day, until layoffs happen to them, many employees have never taken the time to study the Labor Contract Law and understand the compensation/damages standards they should theoretically strive for in different situations.

Strictly speaking, "economic compensation" is used to compensate workers for economic losses caused by the resolution of labor disputes according to national laws and policies, while "economic damages" are used to compensate workers for economic losses resulting from the employer's illegal actions.

"Notice pay" is not a legal term but a commonly used term based on relevant legal provisions, referring to the fee for "replacing one month's notice period" — according to Article 40 of the Labor Contract Law, the amount is equal to one month's salary.

In terms of calculation standards, N represents your length of service; if it is less than six months, it is 0.5N, and if it is more than six months, it is N. In actual calculations, the average salary for the 12 months prior to the termination of the labor relationship should be used as the calculation standard (the salary here refers to the pre-tax salary due).

It is worth noting that the payment of year-end bonuses is stipulated by the labor contract and company regulations. If the company clearly states that only employees who are still employed at the end of the year will receive year-end bonuses, then leaving early means forfeiting the bonus. However, if it is only stipulated that year-end bonuses are based on performance evaluations, and your performance evaluation meets the standards, you can still receive a certain proportion of the year-end bonus even if you leave before the actual payment.

▼ Normalizing Actions to Respond to Layoffs

Below are some more specific and feasible suggestions for responding to layoffs. These suggestions are not only actions to take after layoffs occur; the second item, "Negotiation Skills," and the third item, "Preserving Evidence," should be cultivated and established during daily work.

1. Strive for as much compensation as possible within legal limits.

This is the issue we should be most concerned about. In addition to the basic N/N+1, we should also clarify how unpaid overtime and unused annual leave are calculated; whether social security is paid for the current month; how year-end bonuses are calculated; and when the remaining salary and compensation will be paid.

Typically, during resignation negotiations, HR or other direct supervisors will first test your bottom line — that is, what rights you are striving for — you must clarify this for yourself and firmly establish your bottom line. Common tactics used by companies include appealing to emotions and suggesting from the employee's perspective (be cautious of secretly reducing your legitimate rights).

Another more aggressive tactic is threats. Many companies will use background checks, labor arbitration, or write in the resignation certificate that you were dismissed, etc., as reasons to threaten you. As a worker, do not be intimidated; first, show that you understand the law (this is why it is emphasized to understand the law beforehand), and maintain a firm attitude — however, we strongly advise against acting impulsively unless absolutely necessary; do not completely sever ties with former colleagues or bosses, creating a mess. Always leave some room for negotiation; being confrontational may create counterproductive resistance in striving for actual rights (after all, colleagues in HR and other functional departments may also be workers who could be laid off; starting off by putting the other party in an adversarial position is unwise).

2. Master some negotiation skills.

There are countless cases of losses due to poor negotiation skills. Negotiation is not a magic spell for victory, but it can increase the probability of success.

Before the negotiation begins, you should prepare to record the conversation; recording can help you have a clearer memory of the negotiation process in the future and can serve as potential legal evidence. During the conversation, express your willingness to work and do not reveal any intention to resign. If the other party explicitly mentions layoffs, be sure to state your capabilities and achievements to prove that your work is not an issue, thus taking the initiative in striving for compensation.

A girl working in copywriting released her resignation negotiation recording on a video site. She explained that before being laid off after a year of employment, there was severe internal strife among the upper management, and five colleagues had already left. During the 30-minute negotiation, she maintained a strong demeanor, kept her mind clear, stayed focused on her goals, and made clear demands without backing down. Finally, upon noticing the other party's concession, she played the emotional card and successfully secured 35k in compensation.

3. Learn to preserve evidence.

To avoid potential disputes later, we should cultivate the habit of collecting various forms of evidence during employment, including contracts, salary card transaction records, attendance records, chat records, etc. Ample evidence can benefit you in both resignation negotiations and labor arbitration.

Additionally, developing the habit of "leaving traces" in work is not only a basic workplace quality but can also help us reduce unnecessary troubles:

1. For important information related to finances, contracts, or significant events, always write emails, copying relevant people and leaders, ensuring that the parties involved have replies confirming receipt.
2. After meetings, it is best to generate meeting minutes, recording decisions made during the meeting, next steps, and clearly assigning responsibilities and feedback timelines. Meeting minutes can be shared in work groups, and it is best to also send a copy via email.
3. If you verbally communicate work with others and require their assistance, always send them a WeChat message afterward, reiterating specific requirements, timelines, and precautions. If you verbally invite someone to dinner or an event, confirm the time and location via WeChat to avoid forgetfulness.
4. Even if the company does not require regular work reports, it is advisable to keep records of work done on a daily, weekly, or monthly basis, detailing time, events, participants, progress, and outcomes. If necessary, send the work log to your direct supervisor — this not only proves that you have indeed completed your work without slacking off but also prevents others from taking credit or shifting blame.

4. Avoid mental exhaustion.

In this environment, no one knows what will come first, tomorrow or unexpected events. After experiencing layoffs, do not be pessimistic or fall into dissatisfaction with past unchangeable facts. Layoffs are not entirely related to your personal abilities; work is just one part of life, and actively seeking a new life is the most important thing.

"When I first learned that I was laid off, I felt a bit upset and even shed tears in front of my boss." A programmer from a major internet company shared, "The project had just achieved some results, and I thought I could use this opportunity to get promoted."

"However, upon reflecting on my five years in Beijing, I realized I had been busy every day, often just grabbing a quick breakfast, and even if I got off work early, it would still be past nine. After a week of busyness, I just wanted to lie at home on weekends; this kind of life really didn't bring much happiness." She thought carefully, and this layoff might not be entirely a bad thing for her, "Perhaps it is a chance given by fate to allow me to slow down and reassess my life. If I can't run, I can walk; if I can't walk, I can stand; if I can't stand, I can lie down. Life is so long; I can't always be running."

5. Maintain a calm mindset and take positive action.

After being interviewed, many people become negative, and their emotions prevent them from working normally. However, if you can clock in and out on time, complete your work on time, and avoid being caught in mistakes — you can maintain control over your situation.

You also do not need to be overly fixated on "proving your worth through hard work after being laid off to keep your job." Once decision-makers form subjective judgments, they are difficult to change. We suggest investing your time in higher-probability endeavors. If there are opportunities for content work, consider trying to rotate to other teams. If you feel confident in your abilities, the success rate of interviewing with other companies will not be lower than your chances of salvaging your original job.

Excessive self-doubt leads to losing the ability to rationally handle subsequent matters or, more extremely, falling into a vortex of anger... Every minute spent in negative emotions increases the resistance to overcoming the layoff crisis.

Conversely, if you use this time to actively conduct periodic reviews of work achievements, systematically organize and refine work methodologies, back up personal data and documents, or try to invite valuable colleagues for meals, engage in workplace socializing or activity platforms to network with peers or industry experts, and utilize free time to read industry insights and identify new employer targets... Shifting focus to these next steps will help you quickly transition into an orderly new life.

When the wave of layoffs rolls in, self-rescue is an attitude, and it is also the original intention of this article. Personal efforts may not create waves, but the "victim mentality" is also worth being cautious about.

From a realistic perspective, the world will always meet again; "completely tearing apart with the old employer" should be the "last option" to avoid. If you receive a better new offer, if you can get a few kind words from your previous employer during the background check, then not fighting to the bitter end with your previous employer may not be a loss — since you are destined to be owed, why not find a way to have your previous employer repay you with a more valuable, mutually dignified "human debt" than compensation.

Some Layoff Tricks + How to Respond Correctly When Facing Layoffs!#

Three tricks and corresponding strategies

Trick One: When compensation has not been negotiated, some HRs say they will "fight for you" with the leadership, but they take back your access permissions, computer, and work account, leaving you to wait at home for news. Then! A few days later, they fire you on the grounds of being absent, with no compensation at all.

Response: If you notice your account is expiring, be sure to collect various evidence. Of course, when the company is preparing for layoffs, start collecting clock-in data, work daily reports, etc. Otherwise, you may be unable to collect evidence due to account expiration.

Trick Two: When employees sign the labor contract, it states "the company has the right to unilaterally adjust positions." HR explains this as the company's autonomy in employment, then forces you into a marginal or unmanageable position, pressuring you to resign voluntarily without compensation.

Response: If there are such phrases in the labor contract, try not to sign it; otherwise, it will be unfavorable for you when issues arise later.

Trick Three: The company claims strategic adjustments require relocation to another city; if you can go, then go; if not, resign. A year later, the company still hasn't moved. No compensation is provided.

Response: Continue working normally; as long as the company has not officially relocated, you should work normally. Even if relocation occurs, you do not need to resign immediately; you can observe the situation first.

Six Knowledge Points When Facing Layoffs:

1. The compensation base for layoffs is the average of all income (salary, bonuses, overtime pay, year-end bonuses, allowances, etc.) over the past 12 months, not based on the salary stated in the contract.

2. Oral dismissal is invalid; you must continue working normally until you receive a formal written notice; otherwise, you may be marked as absent. Dismissals must have formal written notices with the company's seal. Otherwise, you may be misled by HR.

3. Pay attention to annual leave and unpaid overtime when leaving; if there are unused annual leave days, they should be settled at three times the daily salary standard, and overtime pay should not be forgotten. Of course, if negotiations with the company go smoothly, this can also be handled flexibly.

4. When the contract expires, if the company is unwilling to renew or lowers the original labor conditions, the compensation is N (N years of service = N months' salary). In simple terms, unless there are special circumstances, the company is required to renew the contract normally; failure to renew requires compensation. Contract expiration ≠ voluntary resignation.

5. Resignation compensation is N months' salary for N years of service; less than six months = 0.5 months' salary; more than six months but less than one year = 1 month. This is well-known and needs no further explanation.

6. Layoffs should be notified 30 days in advance; if immediate departure is required, compensation increases by one month = N+1. If it is a voluntary resignation, 30 days' notice should also be given; during the probation period, three days' notice is sufficient. Note: The company must approve voluntary resignation.

This has become a significant challenge faced by many professionals. This article will comprehensively analyze the tricks of corporate layoffs and provide personal coping strategies to help workers respond to the impending wave of layoffs.

1. Market downturns lead to cost-cutting.

This is the most typical scenario, such as the recent layoffs at major internet companies. Chinese concept stocks have become impoverished, and the growth space for the internet has become saturated, with further regulatory tightening.

The personnel at major companies are certainly redundant; redundancy is necessary to have enough flexibility when exploring new projects. Now that new projects are gone and profits are hard to come by, layoffs must occur. This is easy to understand.

2. Panic leads to precautionary measures.

You will find that some companies, despite not reducing revenue, still lay off employees. Why? The reason is that the impact of the pandemic is not limited to one industry; it is a chain reaction.

Some companies may be purely online, but their clients have offline businesses. If clients have no money, they naturally cannot earn money themselves.

However, this chain reaction takes time to reflect on their own companies, so they need to take precautionary measures in advance.

Moreover, decisions made in panic will make bosses feel the fear of death, leading them to act decisively, preferring to lay off more people early rather than risk being the one to fall first.

So if your company's revenue remains stable, it does not mean layoffs won't happen; look at your business's upstream and downstream; you might be next in line.

3. Are layoffs just about saving money?

Many companies may appear to lay off 20 or 40 employees, which seems significant, but if you observe closely, the people laid off represent a very small portion of the overall costs.

You can understand the company's costs as two categories: economic costs and management costs.#

• A team of 50 people incurs management costs several times higher than a team of 20. What are management costs?

Let me give you an example: two monks fetch water to drink, but three monks have no water to drink. Why? Because three monks will all think about why they need more space, why they need more rewards, and why they need fairness.

At this point, a manager is needed to coordinate these three people, ensuring their competition is fair and satisfactory. Managers need to spend a lot of time and energy coordinating.

This scenario often occurs in small companies where organizational structure and human resource management are not sound, and they cannot be improved. Initially, they rashly hired people to quickly expand their business, dreaming of becoming a large company.

However, they find that the company's management capabilities cannot keep up, leading to a situation where three monks have no water to drink, and the managers become exhausted.

Thus, layoffs occur to lighten the load, removing middle management, allowing two monks to focus entirely on business from the boss to frontline employees.

If you find that your company's boss is struggling with management daily but there is no significant growth in company performance, be cautious; layoffs may not be far off.

3. Determine Layoff Timing and Plans#

Most companies, especially small and medium-sized ones, cannot withstand multiple rounds of layoffs because layoffs severely damage employee confidence and trust. Layoffs are inherently a last resort.

Therefore, most companies choose to cut quickly and decisively, completing the process in one round.

In terms of timing, it is better to act early than late; the sooner layoffs occur, the sooner recovery can begin. Generally, this happens within a month after the boss makes a firm decision.

Regarding compensation plans, unless the company is truly out of money or has a legally ignorant boss, most bosses' principle on this issue is to spend money to avoid trouble.

Especially in today's social climate and legal supervision, many bosses are reluctant to take risks.

The biggest fear for bosses is that if one arbitration case arises, all employees will band together.

At that point, the boss will not be able to focus on business for months, dealing with these headaches, and the employer brand will suffer greatly, making future recruitment particularly difficult.

Therefore, they generally choose the standard compensation under legal provisions, which is N+1 (N being the length of service).

For example, if you have worked for two years with a monthly salary of 10,000 yuan, your compensation would be: (2+1)*10,000 = 30,000 yuan.

Depending on the company's situation, there may also be additional compensation; for example, it is rumored that Alibaba offers 3N+3, and some companies may also cover the social security contributions for the current month.

As is well known, Qunxiang laid off 20 employees last year.

In addition to the legally required normal compensation, we provided each employee with resume guidance and job recommendations, ensuring that everyone could smoothly transition to their next job.

On the last day, we even held a "graduation" ceremony for everyone (which later became a subject of mockery among many netizens).

The final result was that the company laid off employees safely, and the employees received reasonable compensation and found better jobs.

During our third-anniversary event, many former employees returned voluntarily to help. Aside from the dissatisfaction expressed by netizens, everyone else was quite satisfied.

You may be able to get a bit more compensation here, but if it delays you for months, you might miss out on better opportunities. Weighing the pros and cons is something you must judge for yourself.

Moreover, if you push a boss to the edge, they will find every possible way to make up for it. This statement may sound harsh, but it is the reality.

For example, I have personally heard of a case where an employee maliciously pursued arbitration and received a large sum from every company. However, this person later became known throughout the industry, making it nearly impossible to find work in that field.

Do not let your boss touch your bottom line, and do not touch theirs (of course, these bottom lines must be within legal limits). Everyone should maintain dignity; it is better for everyone. This phrase can be remembered for future negotiations, haha.

3. How to Find Your Next Job?#

In addition to conventional job search software, leverage your network of contacts.

As a partner in a small company, I see that although many companies are laying off employees, finding candidates that fit their teams remains challenging. Sifting through resumes on job search software is time-consuming, while resumes recommended by friends are often taken seriously, leading to a higher probability of securing interviews.

Who are your network resources? Your current boss, your colleagues, and the clients you have met. So be brave to self-recommend and ask them for referrals.

Being laid off is not shameful; first, it is not your fault, and second, it does not mean your abilities are insufficient. You must convince yourself of this and believe in yourself.

Then, during interviews, try not to speak emotionally about the negatives of your previous company.

Once you express yourself emotionally, the interviewer may perceive this as your one-sided account, questioning its authenticity, and may view you as emotionally unstable and immature. More importantly, no one wants a person filled with grievances and complaints.

So how should you express it? Simply state the facts honestly: the company laid off employees due to development issues, but the work you did in between was valuable and can prove your abilities.

4. Reassess Your Market Value

Recently, Xie Chaojun from Renren.com posted a video asking a job seeker how much salary they wanted for their next job.

The answer was: a 30% raise. When asked why, the response was that it was a common practice in the internet industry.

This is a very self-deceptive thought. What stage is the mobile internet in now? Can your abilities still create the same value as before? Is your expertise still as valuable in a different industry?

Perhaps your salary was high due to the past boom in your industry, but under the current circumstances, you need to ask the market whether you are still worth that much.

Lower your posture, keep a calm mindset, and talk to people from other companies in the industry about their salary levels compared to before — have they increased, decreased, or remained the same?

5. Maintain a Good Mindset

After discussing so much, I believe the most important thing is actually the mindset. The mindset of most people has been distorted by fear and anger.

They worry about being laid off, fear not finding suitable work, and upon learning they have been laid off, they feel anger and frustration, cursing the boss as a ruthless capitalist, without taking any action.

What does a good workplace mindset look like? It is aligning your abilities with the company's interests; if you grow and contribute to the company, the likelihood of being laid off decreases. Even if you are laid off, you have the ability to find better jobs and enter better platforms.

Be prepared for the spring that may never come again, but do not lose faith in the arrival of spring.