Soft job cuts for foreign companies in China: reducing labor costs with unpaid leave

"Soft redundancy" survey of foreign companies in China: Four popular unpaid leave Microsoft Global to replace old "Wick, I have some information about our organization structure, and want to tell you privately, the company is facing a very challenging year, we have made very difficult decisions. Your position, "Needless to say, is an irreversible and irreversible outcome." Leave, I will have a better choice.　　"This is currently on the Internet a very popular Chinese version of foreign companies to persuade the slide, tell the dismissed employees what to do (doing) and what not to do (Don ' ts), or even what to say to get a better recommendation, and find a better place for yourself. After the financial turmoil and consequent layoffs, many multinationals are quietly carrying out human cost reductions in the form of unpaid vacations or new contracts.　　And in answering questions about whether it is "downsizing", the caliber of all companies is almost unanimous: it is the staff's choice not to lay off staff but to persuade. Thus, the concept of "soft layoffs" arises.　　Originally a career, for the envy of the people in China's foreign employees, in the first round of layoffs after the tide, and faced with a second employment threat. "Unpaid, low pay leave" in vogue since last November, the four major accounting firms (PwC, KPMG, Deloitte, Ernst and leave) have begun to spread a series of policy messages about pay cuts, layoffs and "LAP" (abbreviated by the absence program, which means unpaid leave),　　And the emergence of small-scale staff to persuade employees. On April 21 this year, Ernst & Young issued a "flexible leave" statement: Ernst and Young China will launch a "professional certification leave" and "professional certification bonus" in the 2010 financial year, and Ernst and Young encourage the Chinese mainland All 8,500 employees in Hong Kong and Macau take 40 days off from July this year to June, and encourage all employees who fail to make significant progress in professional certification to leave 20 days before taking the examination. Employees who participate in the two programs can earn as much as 20% of their daily salary, and the company reserves all the benefits for full-time employment, Ernst and Child said.　　The aim of implementing these plans is to reduce institutional spending during the downturn, according to Ernst and firm. Jack, who works for a U.S. software company in China, told reporters that unpaid leave plans had been launched at U.S. headquarters. According to the rules, employees around the world are encouraged to take 2 weeks off voluntarily, while the senior level must rest for 3 weeks. "There is no way, as usual now is peak season (busy season), but from last September, the work seems to be a leisurely." I used to go to four places in 1 months when I was busiest, and now I haven't been on business for 3 months. "In foreign companies, high salaries are often paid for by busy overtime and travel." Vicky, who worked in Deloitte, told reporters that in Deloitte, the level of position is divided into 8 levels: from partnersTo senior manager, manager, then to senior Auditor 3, Senior Auditor 2, Senior Auditor 1, and then to audit Assistant 2, Audit Assistant 1. "The four major accounting firms can attract a large number of accounting professionals to join, is a good salary and well known." Because, first, according to the company's principles, the annual promotion level of employees, wages increased year after year, work 3 years almost after tax has 150,000 yuan annual income, hard point also recognized; the second is the overtime subsidy and travel subsidy, the best time overtime is 30 yuan an hour, holiday earner, travel expenses to 50 dollars a day to settle. "Now everything has changed, postponed the upgrade, overtime pay reduction, the original salary is not high, currently only 5000 yuan/month." Especially in the low pay holiday, can only get more than 1000 yuan, stay does not go, see who can carry. "Vicky said.　　The industry has said that at present Deloitte and KPMG have canceled overtime, while PwC employees can only get 20% of their wages during unpaid leave. Enterprise: Forced to leave "old man" for new Ding has been working in Hong Kong network company for five years as manager of John recently very depressed, because the company recently to save labor costs, the organization has been optimized restructuring. Give the staff three kinds of choice, namely: first, demoted to pay a salary; second, flat changing; third, compensation separation. John chose the second and signed a new job contract.　　After working for 2 months, he found that although he had not been laid off, the company's recent redeployment had thrown him into a position where he could not play his own advantage. "If you continue to do this job, the next month will not finish the performance appraisal, 3 consecutive months or leave." "The resignation of John as a result of an" impossible task "is now commonplace in foreign companies and is aimed at senior employees who have worked for 3-7 years.　　According to the global survey by the Ayers group, a global human resources solutions company, the employees with more than 3 years of working experience accounted for nearly 40% of the company's layoffs. A senior HR manager in the industry explained to reporters why: according to the general foreign-funded enterprises in the annual increase in wages, with more than five years of work experience of the staff is about 2 to 4 times times the new staff, and in terms of output, although the old employees have a wealth of actual combat experience, but work enthusiasm is far less than new. So most companies have started to take steps to reduce the overall remuneration package for executives. "Of course, the senior staff can not say that the CD, and if replaced by a change of pay, many people will not accept and simply resign, so as to avoid sensitive voluntary layoffs."　　"The reporter learned that some foreign companies also adopted a" monitoring "means, for example, according to the flow calculation limit staff to access the Internet, shielding many public websites, more frequent constantly, grasp the discipline, long-distance telephone and copy start need password start, and the new disciplinary evaluation system, the staff who do not pay attention to details are often the first to be eliminated. At the same time, massive strokesNew sports are also surging. If Microsoft, the chief Operating officer, announced earlier this year that it would cut 5000 jobs around the world, he said in March that Microsoft would have a new hiring plan this year, creating 2000 to 3,000 new jobs.　　Huangwen, the HR director and partner, told the media that there were still 2000 recruitment plans for the firm this year, including 1500 college graduates. Employee: How much compensation can be paid "I still signed, but really do not want to say anything."　　Even in the telephone declined the reporter's interview, this in an international well-known accountancy firm worked for 3 years in hesitation anxiety spent a few weeks, finally got the n+2 compensation. The so-called n+2, refers to the amount of compensation = (work year +2) x monthly salary. In accordance with the provisions of the new labor contract law, the employer terminates the labor contract, "the economic compensation shall be paid to the laborer on the basis of the working life of the worker in the unit for a period of one months ' pay." Six months or more less than one year, calculated according to one year; for six months, pay the workers half a month's wages for the financial compensation. "To circumvent legal risks, multinationals generally give" reluctant employees "some options to allow them to accept the" n "Compensation on their own initiative, a person in the industry told reporters. In the actual operation, "based on the separation of the two sides has been a voluntary agreement, so employees can negotiate for more compensation." "The person said.　　It is understood that foreign companies often provide n+2 or n+3 compensation to appease employees. According to reporters understand that the four major accounting firms in the company's personnel to discuss specific details, employees were told that the need to sign a coordinated early termination of the labor contract documents, "the economic compensation, is in accordance with the new" labor contract law "n+1 policy.　　"Many employees expressed dissatisfaction and hope that the company will carry out 2n+1 compensation requirements." Some of the staff went to law firms for legal advice, the answer is: 2n+1 compensation requirements, the enterprise is the double compensation for the illegal layoffs, "the lawyer told us that at present, we and the enterprise signed voluntary leave, does not belong to our legal sense of layoffs, nor is it illegal dismissal, The enterprise's behavior is not suspected of breaking the law, so the enterprise does not need double compensation. It is more realistic to strive for reasonable compensation than to retain the position.　　Even told reporters. In a variety of "soft layoffs" under pressure, many foreign employees have been feeling nervous. Although I did not leave, but every day to work like a scary, especially afraid boss asked personal planning.　　Grace, who works at Ernst and the firm, told reporters that while she was not worried about being forced to leave, she was still nervous. Text: The parties to talk about "soft layoffs" for employees: to get more compensation is the dong Baohua of China's labor law Research, vice president of the new "labor contract law," one of the drafters of the international, layoffs are applicable to a large concept, at present some foreign companies in China have appeared throughEmployees have been asked to leave voluntarily, under the pretext of relocation of the plant, staff transferred from the post and other means of "recessive layoffs." But such layoffs do not equate to domestic legal layoffs.　　China's legal meaning of the layoff refers to 10% or more than 20 employees were cut, and the enterprise unilaterally and employees to terminate the contract, but the current situation is the voluntary separation of employees, does not belong to our legal sense of layoffs. At present, the most important thing is to ensure social stability. The concept of double compensation has been abused, and some lawyers often tell workers that it is misleading to claim double compensation in the event of a dispute. In fact, the relevant departments for the double compensation to take the "austerity" attitude, even if the company found that the situation of illegal dismissal, do not advocate double compensation, the actual operation of more requirements for enterprises and employees to rebuild Labor relations, signed labor contracts. In the face of the enterprise is not illegal "to persuade", employees should seek more compensation from the enterprise, is the staff "retreat" the best way.　　Compared with some foreign companies, private enterprises do not "lay off" behind the direct choice of "close the door", which is not conducive to safeguarding the basic rights and interests of workers.　　For the enterprise: training for employees is a better way to winter Fonsdie PMI global vice president, Project management experts we think that talent is an important resource of enterprises, but let us be disturbed that some business owners now think of these human resources as a commodity, can be casually replaced. For visionary companies, they do not treat their employees as commodities, because doing so will create a sense of belonging to the company, and a sense of belonging can make employees choose to stay in the business in times of crisis and in the past. In contrast to layoffs, choosing to give employees short leave is more far-sighted.　　A better approach is to train employees so that when the business cycle is up, the company is better prepared for faster development, and in the short term it can also improve the skills of employees to help them tide over the difficulties. For rights: Foreign employees can go to the location of the trade unions Guo ACFTU Minister of Democratic Management, February 3, 2009, the State Council issued a "on the current economic situation under the notice of employment," the notice of an important element is to emphasize the regulation of the problem of redundancy. Many media and businesses simply understand that limited companies are laying off workers, and even banning companies from downsizing. This is a serious misunderstanding.　　Layoffs of course is an unpleasant thing, whether enterprises or workers, the government or the community do not want to have the problem of layoffs, but the layoff is a market economy in the process of enterprise development has to face an objective reality. In accordance with the law to lay off the enterprise is not all right, a mature enterprise should be the enterprise's difficulties, the problem truthfully to the staff openly, through the democratic way, mobilize staff and workers to tide over the difficulties. Shorter working hours, rotation training, timely arrangement of annual leave, round-job holidays, and consultation pay are more positive solutions to problems than layoffs. There are many foreign companies without sound unionsOrganization, but the employees of foreign enterprises, even if the company does not have a trade union organization, employees can go to the city or county General Union to seek help, through consultation to fight for their own rights and interests.