What to Do First After a Layoff

Unofficial English translation of docs/被裁了之后先做什么.md. In case of discrepancies the Chinese original takes precedence.

After a layoff or dismissal, the things you need to handle are scattered across Section 19, Section 7, and several other sections. Below they are ordered by time. Each step states only what to do; details, numbers, and sources are in the entry cited in parentheses. If you are only owed wages and are still employed, go straight to Section 7, item 2 (wage arrears: complain to labor inspection first).

The day of: before you sign anything

1. If the company hands you a “voluntary resignation for personal reasons” form, do not sign. If you sign, economic compensation and unemployment insurance benefits usually both disappear. See Section 19, item 7 (never sign “voluntary resignation for personal reasons”).
2. If they say “sign first to process the exit, compensation will come separately,” insist the compensation be written into the agreement on the spot. If it is not written in, do not sign; refusing to sign that day has no legal consequence. See Section 19, item 7 (never sign “voluntary resignation for personal reasons”).
3. Turn on a recorder for the conversation. For talks you attend yourself, you do not need the other party’s consent first. See Section 8, item 41 (start recording).
4. Before you return the computer and accounts, save pay stubs, attendance records, the employment contract, social-insurance records, and chat logs. See Section 19, item 8 (save evidence before leaving).
5. Save only your own employment-related materials. Do not take company source code, customer lists, or technical documents. See Section 11, item 7 (do not take source code when you leave).
6. Hand back account access cleanly: do not delete data or change passwords, even if the company owes you money. See Section 11, item 6 (return account access).

That day through the first few days: nail down the money

1. Calculate N first: one month’s salary per full year of service; half a month for periods under six months. See Section 19, item 4 (calculate N after a layoff).
2. Monthly salary is the average over the 12 months before you leave; bonuses, allowances, and subsidies all count. Employers often understate this. See Section 19, item 4 (calculate N after a layoff).
3. If the company did not give you 30 days’ written notice, you get an extra month’s salary on top of N. When negotiating, list that month separately. See Section 19, item 5 (no 30-day notice).
4. For unlawful termination, compensation is 2N. Whether termination was unlawful—ask legal aid or a lawyer before you decide to negotiate or go to arbitration. See Section 19, item 6 (unlawful termination).
5. Unused annual leave must be paid out at separation, pro-rated to how much of the year you worked. See Section 19, item 2 (annual leave).
6. Include any unpaid overtime in the total. See Section 19, item 1 (overtime pay).

The first week

1. Register as unemployed. Unemployment insurance starts from the registration date; a month’s delay costs you a month of benefits. See Section 7, item 1 (unemployment insurance).
2. Unemployment registration is done at public employment service agencies such as employment service centers; there is no fee. See Section 7, item 5 (public employment services).
3. Apply for unemployment insurance on the “掌上 12333” app or the electronic social-security card mini-program. You need at least one year of contributions and a separation that was not voluntary resignation. See Section 7, item 1 (unemployment insurance).
4. While you receive unemployment insurance, employee medical insurance is paid through the unemployment insurance system; you do not enroll separately. See Section 7, item 1 (unemployment insurance).
5. If you cannot afford to sue, call 12348 for legal aid. You no longer need to obtain a poverty certificate from your hometown. See Section 7, item 3 (legal aid).
6. If you signed a non-compete agreement, keep the original. The company must pay monthly compensation; if it fails to pay for three months for reasons on the company’s side, you may seek to terminate the agreement. See Section 11, item 12 (non-compete agreement).
7. Fix your daily routine: get up at a set time and schedule job search as a fixed block; do not stay home all day. See Section 29, item 3 (after job loss, fix your routine first).

The first month

1. If wages or overtime pay are still unpaid, call 12333 to complain to labor inspection first, then apply for labor arbitration. Both routes are free. See Section 7, item 2 (wage arrears: labor inspection first).
2. If your employer was an unlicensed workshop, you still use inspection and arbitration. Money owed by a labor subcontractor goes against the general contractor; work for a household or individual as a private helper goes to court. See Section 7, item 22 (figure out who employed you).
3. Labor arbitration must be filed within one year after leaving. After the deadline, “time limit exceeded” is enough for the other side. See Section 8, item 19 (one-year labor arbitration limit).
4. For job search, start at public employment service agencies; job placement and career guidance are free—do not use paid agencies. See Section 7, item 5 (public employment services).
5. Do not rely on résumés alone. Learn job-search skills, set clear targets, and ask contacts for referrals. See Section 7, item 14 (systematic job search).
6. Refuse on the spot offers to “pay first before starting,” “train first then get placed,” or “recruit others to join.” See Section 7, item 15 (no “training loans”).
7. Before paying for skills training, check your local human-resources bureau’s vocational training subsidy catalog. See Section 7, item 13 (vocational training subsidies).
8. See whether you qualify for “person facing employment difficulties” recognition—for example older age or long-term unemployment. Once recognized, you may get social-insurance subsidies and priority for public-interest jobs. See Section 7, item 12 (employment-difficulties recognition).

The months after

1. Cover living costs from your emergency fund first; do not borrow and do not sell investments at a loss. See Section 5, item 27 (emergency fund).
2. In the first three months, postpone irreversible decisions: selling a home, investing a lump-sum severance, partnerships, guaranteeing others’ debts—all count. See Section 29, item 12 (irreversible decisions).
3. When unemployment insurance runs out and you still have no job, do not leave medical coverage empty. You can pay resident medical insurance yearly yourself; after a break in payment, claims are denied for three months. See Section 7, item 9 (resident medical insurance).
4. A break in pension contributions does not zero out past years; benefits use cumulative years. Do not pay someone for illegal “affiliated” enrollment. See Section 7, item 18 (social insurance lapse).
5. If household income falls below the local minimum-living guarantee line, apply for dibao. See Section 7, item 7 (apply for dibao).
6. If you need someone to talk to, call 12356; it is free. See Section 29, item 11 (call 12356).
7. For money still owed to you, watch the one-year deadline from the date you left. See Section 8, item 19 (one-year labor arbitration limit).