Circular of Ministry of Labor and Social Security on Promulgating the "Provisions on Enterprises Using Redundancy for Economic Reasons"

Circular of Ministry of Labor and Social Security on Promulgating the "Provisions on Enterprises Using Redundancy for Economic Reasons"

Lao Wu Bu fa [1994] No.447

November 14, 1994
　
Article 1 With a view to guiding enterprises (employers) to correctly implement their rights in retrenching their workforce according to law, these Regulations are formulated in line with the relevant stipulations of the Labor Law of the People's Republic of China.
　
Article 2 Retrenchment of workforce may be made by an enterprise, when its serious financial difficulty has pushed it to the brink of bankruptcy and caused the People's Court to announce it as in the period of legal rectification, or when it faces such serious problems in business operation as to meet the standards set by the local government for enterprises in severe difficulty, which are allowed to retrench their workforce.
　
Article 3 Enterprises shall provide their retrenched personnel with training course or help their re-employment where possible.
　
Article 4 Enterprises, in retrenching their workforce, shall comply with the following procedure:
1.
　　......