06Evidence A

When a company unlawfully terminates employment, the compensation equals twice the standard severance amount

If termination is unlawful, damages are double the economic compensation standard—commonly called 2N. Whether termination is unlawful depends on the facts. Ask legal aid or a lawyer first, then decide whether to negotiate with the company or go to arbitration.

Cost

There is no direct cost involved. However, arbitration can…

Benefit

Under labor law, employers who unlawfully terminate or end employment contracts must pay compensation equal to…

Cost

There is no direct cost involved. However, arbitration can take several months to resolve, and you must remain actively involved throughout this period without being able to drop the process midway.

Benefit

Under labor law, employers who unlawfully terminate or end employment contracts must pay compensation equal to twice the standard severance amount outlined in Article 47 of the law. This means first calculating the standard severance figure and then doubling it for payment to the employee.

Original sources

全国人大常委会 (2007). 中华人民共和国劳动合同法(2008 年 1 月 1 日施行)(第八十七条). http://www.gov.cn/gongbao/content/2007/content_711013.htm

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Book note

This is the commonly known “2N” compensation rule. Whether termination qualifies as unlawful hinges on particular facts and conditions. Seek legal counsel first; further guidance on next steps is provided in Section 7.

My note