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It is better to manage the army than to manage the people. And the enemy.
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Layoff Response Guide

After receiving the dismissal notice, do not panic; stay calm. Find any recording tools or software you have on hand, listen to what the other party is saying, think it over first, and do not give a substantive and decisive response right away. You may also consider replying later. Fight for your legal rights and compensation. At this point, you can start saving your pay slips, attendance records, labor contracts, and other documents, and collect relevant files such as your job responsibilities, project results, and performance evaluations, in case you need them for future arbitration.

When asked about how to act when facing layoffs, people generally have three types of thoughts:

  1. The company is not concerned about whether you want to take a break or find a job immediately; 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 time after being laid off? What can your actions prove about your abilities?
  2. Focus on the short term: Entertainment, job hunting, and selection are all short-term behaviors. Taking a break and having fun is understandable, but if this period extends, your mind and body will become immersed in a comfort zone, making it increasingly difficult to return to a work state.

  3. Localized thinking: The above three approaches only have the brain oscillating between the options of "job hunting" and "rest." Therefore, the relevant work we can do is merely to prepare resumes, look at job websites, submit applications, and prepare for interviews. This localized thinking limits our perspective, and when one path is blocked, it feels like there is no way out. Thus, our considerations regarding layoffs must revolve around the "company perspective," "long-term perspective," and "overall perspective."

The first step is to divide the layoff situation 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 risks is essential. The third step is to establish plans for different stages 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 layoffs: Regardless of the job, consider the most critical situation: if I get laid off, what preparations should I make? Thinking from a global perspective means that it is not just about preparing a resume; it involves preparing in these three areas:

  1. Finances: The direct impact of being laid off is the loss of income, leading to negative personal earnings. If there is no savings pool at this time, family cash flow will break, and many people may also have mortgages and car loans, which can lead to a collapse in mindset and desperate measures. Therefore, financial risk management is necessary at all times.

    • Financial assessment: What are my monthly expenses? If I indulge a little, how much more can I spend? If I "declutter," what is the minimum expenditure?
    • Financial reserves: If you have a family, it is best to save enough to cover one year of expenses without working. If you are single, at least save enough for six months of expenses.
  2. Abilities: You may have never fully sorted out your abilities. You might think that having worked in a certain job for several years is a sign of ability, or that organizing your various certificates counts as an ability assessment. However, these do not necessarily mean you possess certain abilities. One way to sort out your abilities is to "update your resume."

    • Capable individuals update their resumes annually, an old-fashioned term is "year-end summary," while a trendy term is "review." 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 after writing my resume, I realize I haven't worked on any marketing-related projects; this means that in the coming year, I need to work on some marketing-related projects to unlock new abilities.
  3. Networking: Now, everyone probably knows that having connections when job hunting increases the success rate. Almost everyone who has successfully made a significant career transition has 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 many connections. After all, networking relationships are built over time. Therefore, this is something one should do before being laid off: sort out and expand your network.

When we have prepared in these three areas, we can roughly anticipate what cards we have to play if we face the risk of layoffs, which will reduce psychological worries.

Plans after layoffs: People are "goal-plan" animals. When a specific goal and a clear plan are set, people will act like a wound-up toy. Let's consider the perspective of recruiters: for the same position, three candidates apply: one has just been laid off for two or three months; one has been out of work for six months; and one has been unemployed for over a year. Even if all three have similar work experience, will we treat them equally? For the one who just left, we might not care too much about what they have done in the past two or three months; however, for the one who has been out for six months, we will definitely be more concerned about what they have done during that time. At the same time, we would place the candidate who has been unemployed for over a year at the lowest priority, as we clearly doubt 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 stage.

  1. Early 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, go to Tibet to find yourself, and then visit Tokyo and Paris, but do not exceed one month. During this time, create a career goal plan: what is the preferred job, the second choice, and the third choice. This is similar to the "reach-stabilize-protect" plan for college entrance examination applications. Job hunting should also have a "reach-stabilize-protect" strategy. Reach for a few jobs, stabilize a few jobs, and protect a few jobs.

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 positions you most want. 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 applying for your second-choice job.

  1. Mid-term plan (3 months - 1 year): By the mid-term, the strategic approach must change. Because when we start submitting resumes and interviewing, companies will prioritize us lower. If someone has not found their desired job after three months, analyzing the reasons from the company's perspective: either they have not been looking, which indicates they are restless and lack stability; or they have been looking but have not 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 "protect" strategies. Therefore, we must relax our job hunting standards, trying out positions in large companies, small companies, desired roles, and undesired roles.

Next, it is time to prepare for work that does not require a formal job. The so-called "non-job work" can be nicely termed "freelancing" or "entrepreneurship," but less pleasantly, it is "part-time work" or "gigs." As a person remains unemployed for a longer time, their chances of successfully reapplying decrease. However, if they are still working and earning, it can increase their success probability. This indicates 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 some money; learning community operations can allow you to participate in various communities and help them serve clients for a fee.

Finally, remember the financial preparations mentioned before the layoffs? If you could roughly assess your highest and lowest monthly expenses at that time, when you have been unemployed for three months without income, you will need to reduce your monthly expenses. Start by quitting smoking and drinking to save some money; cook your meals; boil your own water; choose only the most necessary extracurricular classes for your children; if you have a car, park it in a free public parking lot; and avoid impulsive shopping during live streams. In the absence of increased income, focus on cutting expenses to get through tough times.

  1. 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 spent the year studying full-time or working independently, do not submit resumes. The chances of being called for an interview are very low. 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 "job seeking" to "money-making." In simple terms, use all legal means to solve certain problems for people in exchange for income. For example, on a cold winter night, Lao Wang and Lao Ma were at a hot pot restaurant in the south city, and they ran out of lamb and beer. Lao Wang said he was tight on money lately. Lao Ma suggested making some money. The next morning, a black three-wheeled motorcycle arrived at the street corner, and two men in black got out and moved two boxes. A breakfast stall was set up just like that.

Although this is a joke, it illustrates that as long as you want to, there are always ways to make money.

If 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 the Labor Law of the People's Republic of China:

  • Article 24: Labor contracts may be terminated by mutual agreement of the parties.
  • Article 25: The employer may terminate the labor contract under the following circumstances:
    1. If the employee is proven to be unqualified during the probation period;
    2. Serious violation of labor discipline or the employer's rules and regulations;
    3. Serious dereliction of duty, personal gain, causing significant harm to the employer's interests;
    4. Being legally prosecuted for criminal responsibility.
  • Article 26: The employer may terminate the labor contract under the following circumstances but must notify the employee in writing 30 days in advance:
    1. The employee is ill or injured not due to work, and after the medical period, cannot engage in the original work or any work arranged by the employer;
    2. The employee is unable to perform the work, and after training or job adjustment, still cannot perform the work;
    3. Significant changes in the objective circumstances on which the labor contract was based make it impossible to perform the original labor contract.

Fight for your legal compensation: How much can you be compensated?

  • Article 40: The employer may terminate the labor contract by notifying the employee in writing 30 days in advance or by paying an additional month's salary to the employee:

    1. If the employee is ill or injured not due to work, and after the medical period, cannot engage in the original work or any work arranged by the employer;
    2. If the employee is unable to perform the work, and after training or job adjustment, still cannot perform the work;
    3. If significant changes in the objective circumstances on which the labor contract was based make it impossible to perform the labor contract, and the employer and employee fail to reach an agreement on changing the labor contract.
  • Article 47: Economic compensation is paid to the employee at the rate of one month's salary for each year of service with the employer. For service of more than six months but less than one year, it is calculated as one year; for service of less than six months, the employee is paid half a month's salary as economic compensation.

Is severance pay considered basic salary? Severance pay typically refers to the employee's salary for the last month before being laid off, which includes all income such as basic salary, bonuses, allowances, and overtime pay. 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:

  1. Negotiate with the employer.
  2. Request mediation from the inspection team.
  3. Apply for arbitration with the labor bureau.
  4. Initiate a lawsuit in the people's court.

Necessary documents after resignation: Ensure that the employer processes your resignation paperwork; many people do not realize this. It is crucial to distinguish that resignation paperwork is not the same as a resignation certificate; resignation paperwork is not a resignation certificate; resignation paperwork is not a resignation certificate.

Summary of the N+1 package: Current issues with the agreement contract:

  1. The compensation does not specify amounts for annual leave at three times, weekend overtime at two times, and weekday overtime at 1.5 times.
  2. The compensation amount for the year-end bonus calculated based on time.
  3. The compensation amount for overtime during the "transition period."
  4. The month until social security and housing fund contributions can be negotiated.
  5. The agreement contract states that payment will be made by the end of April, while the Labor Contract Law stipulates that it should be paid on the last day of handover.
  6. Regarding stock vesting, it is recommended to negotiate the exit date to April or discuss other conditions.
  7. 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 negotiations:
8. Record the conversation; inform HR and those present, stating that this conversation will be recorded to protect our legal rights. (Such recordings are legal.)
9. Learn to withstand pressure, clearly understand the terms of the agreement, especially the second, third, and fifth clauses. Do not be misled by deceptive language at the scene, which could 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 provide detailed information. Clarify the leader's motives before taking action.
12. Keep 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. The premise is reasonable compensation.
14. Think about why HR is so eager for you to sign N+1.

Some tips for the package:

  1. Spend all employee points.
  2. Spend all balances (even if the balance is not spent, it will be paid with the last salary and will be taxed together).
  3. Take sick leave; if the leader approves, just do it. For continuous days, a certificate from a top-tier hospital is required.
  4. Weekday compensatory leave is calculated at 1.5 times, weekend compensatory leave at 2 times, and holiday leave plus annual leave at 3 times.
  5. N+1 has no impact on resignation background checks.
  6. N is the total income over the past 12 months divided by 12, which includes year-end bonuses, with a cap of three times the average salary in Beijing (around 37,840 in 2021).
  7. N+1 is contractual compensation; once signed, it is considered agreed. 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.

  1. 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, assert 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. So do not sign, and even negotiate; confirm whether each clause should appear in the agreement, and assert your rights unconditionally. Do not be trapped by their coercive tactics disguised as "negotiation." Be cautious.

  2. Other workers facing similar issues can refer to this; if they want to negotiate, simply reply, "Talk to my lawyer." It is 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.

  3. Additionally, consider your options for follow-up plans:

    1. If you go along with their "negotiation," you will receive minimal compensation rights but lose the most significant rights to defend and voice your concerns, while the company gains the most overall benefit.
    2. Arbitration allows you to still legally obtain the compensation rights you deserve without being denied by any clauses, and the company bears the risk of losing the arbitration case.
    3. The company should provide legally valid economic assessments, and the union should report formal government documents to you for legal evaluation.
    4. Lastly, everyone should negotiate; genuine "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 specific relationship and choose for yourself.

To summarize two points of behavior: do not be afraid, maintain dignity, and you can legally defend your rights; and do not sign.

  1. A reminder: if you do not understand the relevant labor law articles, consult a lawyer. Do not interpret them yourself with partial knowledge, as many will exploit your lack of understanding of specific practical details to trap you.

  2. 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.

  3. Generally, unless it is a violent review, companies will handle reviews through negotiated resignations. The company pays promptly, and the employee proposes the company's exemption.

  4. Generally, companies will not voluntarily offer 2N unless the individual can provide evidence of the company's illegal termination of labor relations during arbitration.

  5. For the reasons above, employees generally propose negotiation conditions of >= N+1. Invalid enterprises have backup economic evaluations at the labor bureau.

  6. Finally, it is worth mentioning that blindly pursuing 2N is not recommended. Do not sign without reviewing everything; if you are not satisfied with the conditions, you can endure as long as your mindset remains stable. After all, enduring in the company is practically better than going for evaluations. If the company makes a weak move and accidentally triggers the "forced termination of labor relations" scenario, congratulations in advance, as long as you are prepared with evidence for arbitration, it is highly likely to succeed.

  7. I have been through arbitration and can share my experience. I have gone through several background checks and have never heard of arbitration affecting job hunting. You can arbitrate while walking, needing only a few days off at most.

  8. If you are still working at the original company, as long as the company dares to cut your salary or delay payment, keep evidence, apply for arbitration, and you will win, receiving both salary and compensation.

  9. Additionally, arbitration can be expedited without expansion. Also, do not withdraw your lawsuit if you have not received payment.

  10. A point to add: if your salary is cut or delayed, you can immediately resign, look for a new job, and mine at the same time.

  11. As long as the original company does not go bankrupt, you can receive both work and compensation. A special reminder is to pay attention to judicial compensation. You can obtain a list of required evidence from the local labor arbitration team, detailing what evidence is needed. I hope this information is helpful to everyone.

Summary of layoff experiences:

  1. 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, the national free legal consultation service, to inquire about labor arbitration and other matters.
  2. Absolutely do not do: voluntarily initiate a resignation application.

    • Under no circumstances should you propose a transfer application!

    • Once proposed, there will be no truth left!

    • Legal coercion refers to threats made with a knife! Therefore, all your subsequent evidence will be used against you!

    • Overtime and such will not help!

  3. Exclude rumors and common HR threats:

    • XX behavior caused serious losses: as long as it did not cause serious losses or economic damages to the company, it does not constitute serious negligence, and the law will not support their claims.

    • There is no internet credit platform, there is no internet credit platform, there is no internet credit platform!

    • Dismissal compensation and year-end benefits are two different matters!

    • To summarize, 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 lay you off.

I am involved in internal legal education for workers and have gathered common legal issues in the current evaluation environment of the largest companies. Those in need can refer to this for countering unscrupulous capitalists.

  1. 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' notice pay. If it is not the worker's fault, and the company unilaterally terminates the labor relationship, except for the first labor contract not being renewed, it is N+1; otherwise, both parties can negotiate N+1, or else compensation is 2N or continue performing the labor contract. Three-phase women are not allowed to be evaluated.
  2. Is there a cap on compensation? How is it calculated? Is it taxable?

    • According to Article 47 of the Labor Contract Law, compensation is calculated based on the average salary over the previous 12 months, including salary, bonuses, pensions, and allowances. In summary, all pre-tax income that can be calculated as salary. If it is high, it is capped at three times the average salary of workers in the previous year in the respective city, with a maximum compensation period not exceeding 12 years, i.e., N ≤ 12. There is no limit for those below the average salary. According to Article 87 of the Labor Contract Law, compensation is double the compensation amount, meaning that when the employer illegally terminates the labor contract, 2N ≤ 24. Similarly, there is no low salary. As for +1, it depends on whether there was a one-month advance notice. The specifics depend on local regulations.
  3. How is compensation handled during work injury periods and non-work-related medical emergencies?

    • During work injury periods, 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 notice is required. Specific medical period content varies from three months to two years for employee swelling or non-work-related injuries.
  4. 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 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 clauses must be reviewed, as this falls under the company's discretion, and arbitration decisions are hard to support. However, if the company has clearly informed you of this year's year-end bonus or has stated that you can receive the corresponding year-end bonus level according to relevant systems, then with sufficient evidence, support can be obtained.
  5. Can non-compete agreements be lifted? How long should they be limited? How is compensation calculated?

    • Once signed, the timing of termination is determined by the company, with a maximum non-compete 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, with the calculation method following the agreement.
  6. What is the scope of non-compete restrictions? Will companies not on the list be included?

    • Based on public case studies, whether restrictions apply depends on whether there is substantial competition between companies, not merely based on business license scope. In simple terms, companies not on the list may still fall within the restriction scope, while companies on the list may not.
  7. How to handle annual leave? Can it be taken before terminating the labor relationship?

    • Annual leave can be taken before termination; if the company does not allow it, you can request 200% of the salary instead.
  8. 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 report it to labor supervision.
  9. Can vested portions be realized, and what about unvested portions?

    • Stock incentives currently have a legislative gap in China, and judicial practice recognizes them as labor disputes. 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 of labor income can be claimed. However, if certain companies have a VIE structure, where the labor contract is with a domestic company but the registered entity for options is in the Cayman Islands, arbitration will likely fail and enter litigation. Since the registered entity is in the Cayman Islands, it also involves issues of delivering judicial documents abroad. If your options are very valuable, it is advisable to gather sufficient evidence; if there is not much money involved and you do not want to go through the hassle, it may be better to let it go. After all, once it involves foreign issues, it can be complicated in the second instance.
  10. How to obtain arbitration evidence?

  • Pay attention to preserving relevant evidence, forming a chain of evidence through mutual verification, and try to keep electronic data intact. For key 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 achieving most of it is not a problem. However, for workers, they should stand up to defend their rights and not endure passively. While we may need to accept some compromises, we should not retreat on our rights.

Social Security:

  1. Individuals can pay social security through flexible employment: There is a note here: you must have a local household registration or ten years of social security to qualify, and you can only pay for pension and medical insurance. If you have a household registration from another place, you can only pay for pension, and medical insurance will be interrupted. If you meet the requirements, the operation method is straightforward:

    • 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 fee payment" on Alipay or in Zhejiang. At the end of the month, you will receive a notification, and you can pay it yourself. This is the online method; offline, just remember to bring your documents to the "Citizen Center" for processing.
  2. Paying through a company: This is equivalent to joining the company, so all five insurances and one fund can be paid. However, the state has policies for substitute payments, and many options on Taobao have been taken down. You can consider this based on your situation.

  3. Should unemployment insurance be applied for? First, I want to tell everyone that if you are paying social security through a substitute company, 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 a local household registration in Hangzhou, and you can only pay for pension and medical insurance. I do not know if you can claim if you pay yourself; I have not tried it, but you can give it a shot.

Then, there are two types of unemployment benefits:

  • If it is labeled "voluntary resignation" → unemployment allowance, 912 yuan/month.
  • If it is labeled "involuntary resignation" → unemployment insurance, 1824 yuan/month.

You can first ask HR about your resignation status; generally, a "layoff" resignation certificate is labeled as "voluntary resignation." In our company, if needed, you can ask HR to issue a dismissal certificate.

Calculation principles for the number of months that can be claimed:

  • 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 of the additional period, one month of unemployment insurance is added. If the remainder exceeds four months but is less than eight months, it is calculated as eight months, but the maximum benefit period does not exceed twenty-four months.

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