Entering ChinaA labor dispatch company has a labor dispatch agreement with Company A, and Mr. He and Mr. Li are sent to work in Company A after signing a labor contract with the labor dispatch company. Later, the business direction of Company A was adjusted, and the dispatch positions of Mr. He and Mr. Li were cancelled. At this time, the labor contract between He and Li and the dispatch company still expired in half a year. Company A then negotiated with the labor dispatch company, Mr. He, and Mr. Li, and reached an agreement on the termination of the relationship: Company A returned Mr. He and Mr. Li, and the dispatch company terminated the labor relationship with Mr. He and Mr. Li, and the relevant economic compensation was borne by Company A.
Case Highlights:
Paragraph 2 of Article 46 of the Labor Contract Law stipulates that if an employer proposes to terminate the labor contract to the employee in accordance with Article 36 of this Law and the employee agrees to terminate the labor contract through consultation, the employer shall pay economic compensation to the employee.
According to Article 17 of the Interim Provisions on Labor Dispatch, if a labor dispatch entity dissolves or terminates a labor contract with a dispatched worker due to Article 46 of the Labor Contract Law or the circumstances specified in Articles 15 and 16 of these Provisions, it shall pay economic compensation to the dispatched worker in accordance with the law.
In summary, the relevant labor dispatch company shall pay severance for the termination of the labor contract of Mr. He and Mr. Li, and the severance shall be calculated according to the “employee’s years of service in the employer”. At the same time, according to the Dispatch Agreement signed between Company A and the labor dispatch company, Company A shall bear the relevant economic compensation for the return of the dispatched worker in this case.
