Workers Rights Include Economic Compensation When Labor Contracts are Terminated

Dec 13, 2021


Workers Rights Include Economic Compensation When Labor Contracts are Terminated.

Payment for your work is your basic right when working for a company.  However, it is also the legal right of employees to obtain economic compensation when their company terminates the labor contract.

So you must know how to calculate your economic compensation.

When a contract is terminated, you have a right to receive the equivalent of one month's salary for each previously worked year for the employer.  If it is more than six months but less than one year, it is still calculated as one year; If it is less than six months, the employee shall be paid half a month's salary as compensation.

The monthly salary here refers to the average wage of the employee in the 12 months before the cancellation or termination of the labor contract. If it is less than 12 months, the average salary is calculated according to the actual number of months worked.

(Edited by CJD; Source: Ministry of Human Resources and Social Security)

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