Viewpoint | Research (I) on Disputes over Year-end Awards
Published:
2022-12-14
Regarding the year-end bonus, the current laws and regulations do not stipulate how the year-end bonus should be paid. The employer has the right to independently determine whether the bonus is paid, the conditions and the payment standard according to the operating conditions of the unit and the performance of employees. However, the distribution rules formulated by the employer should still follow the principle of fairness and reasonableness. Whether the workers who have left before the year-end bonus can obtain the year-end bonus should be combined with the reasons, time, work performance and contribution to the unit. Comprehensive consideration of various factors. The year-end bonus, as an additional remuneration given to the workers by the employer, whether and how much it is paid, to some extent, belongs to the independent management right of the employer. However, once the year-end bonus is agreed and the laborer meets the established conditions, it becomes an obligation of the employer to pay the year-end bonus according to the contract. 1. Year-end Award and Its Nature Determination (I) year-end bonus is part of the salary Article 4 of the "Regulations on the Composition of Total Wages" of the National Bureau of Statistics clearly stipulates that bonuses are an integral part of total wages; Article 7 stipulates that bonuses are excess labor remuneration paid to workers and labor remuneration for increasing income and reducing expenditure. Article 2 of the "Regulations on the Composition of Total Wages" of the National Bureau of Statistics clearly stipulates that year-end bonuses (labor dividends) fall within the scope of bonuses. Therefore, the year-end bonus is an integral part of the salary. It is a bonus paid by the employer to the laborer at the end of the year through internal rules and regulations or labor contract agreements or other methods according to its own business conditions. (II) year-end bonus is agreed rather than statutory Article 47 of the Labor Law stipulates: "The employing unit shall, in accordance with the production and operation characteristics and economic benefits of the unit, independently determine the wage distribution method and wage level of the unit in accordance with the law." Therefore, the issuance of year-end awards belongs to the scope of the employer's independent management rights, and the law does not force the employer to issue year-end awards. According to whether the distribution is conditional, the year-end bonus is divided into fixed year-end bonus and conditional year-end bonus. Principles to be followed in the distribution of 2. year-end bonus The year-end bonus is usually paid in the following three ways: one is the labor contract agreement; the other is the rules and regulations; the third is that the employer determines the final amount of the year-end bonus for each employee based on the performance of the employee and the company's business performance. In the practice of referees, the two principles of "agreement priority" and "fairness and reasonableness" should be followed in determining whether the year-end bonus should be issued. (I) the principle of "agreed priority" in the distribution of year-end bonus The distribution of year-end bonus belongs to the scope of the employer's independent management right, and the employer may make an agreement with the laborer. If the year-end bonus is agreed in the labor contract and rules and regulations, the employer has the obligation to perform due to the agreement. When the employer should issue the year-end bonus, the worker can claim the legitimate rights and interests according to the agreement. First, workers should advocate the existence of employers to issue year-end bonuses. In practice, many employers do not agree on the year-end bonus in the labor contract, rules and regulations and other written documents of the company, and the distribution of the year-end bonus is comprehensively judged by the employer according to the company's operating conditions and other factors in that year. Although the year-end bonus belongs to the salary, the employer can independently decide all matters concerning the payment of the year-end bonus. Therefore, the employer often denies the year-end bonus in arbitration or litigation. At this time, the worker must provide evidence to prove that there is an agreement on the year-end bonus in the labor contract or rules and regulations. If it cannot be provided, at least the employer must provide evidence that the employer has issued the year-end bonus, otherwise the worker may bear the legal consequences of failing to provide evidence. After the worker proves the fact that there is a year-end bonus, the employer shall bear the burden of proof for the conditions, time, method, amount, excess or deduction of the year-end bonus. Second, whether the agreement on the year-end bonus in the labor contract or rules and regulations is legal, effective and clear. Regarding legality and effectiveness, it mainly refers to whether the content of the year-end bonus in the labor contract or rules and regulations conforms to the labor law and whether the legal procedures are fulfilled. As far as the labor contract is concerned, it mainly refers to whether the employer negotiates with the laborer on the terms of the year-end bonus in the labor contract, whether it explains the relevant terms, and whether the relevant terms exist in the circumstances stipulated in Article 18 of the Labor Contract Law. As far as rules and regulations are concerned, the rules and regulations related to the year-end bonus, as rules and regulations or major matters directly related to the vital interests of workers, shall be formulated and amended in accordance with the provisions of Article 4 of the Labor Contract Law. First, the workers' congress or all employees discuss and put forward plans and opinions. Secondly, negotiate with the trade union or employee representatives on an equal footing. Once again to perform the public notification procedure; Finally, in the implementation of the year-end bonus system, if the trade union or employees have any objection, they can put forward their opinions to the employer at any time, and the two parties shall make public the revision through consultation. With regard to clarity, it mainly refers to whether the matters concerning the year-end bonus in the labor contract or rules and regulations are clear, including the conditions of payment, the time of payment, the method of payment, the amount of payment, the excess or deduction, and so on.
Regarding the year-end bonus, the current laws and regulations do not stipulate how the year-end bonus should be paid. The employer has the right to independently determine whether the bonus is paid, the conditions and the payment standard according to the operating conditions of the unit and the performance of employees. However, the distribution rules formulated by the employer should still follow the principle of fairness and reasonableness. Whether the workers who have left before the year-end bonus can obtain the year-end bonus should be combined with the reasons, time, work performance and contribution to the unit. Comprehensive consideration of various factors.
The year-end bonus, as an additional remuneration given to the workers by the employer, whether and how much it is paid, to some extent, belongs to the independent management right of the employer. However, once the year-end bonus is agreed and the laborer meets the established conditions, it becomes an obligation of the employer to pay the year-end bonus according to the contract.
1. Year-end Award and Its Nature Determination
(I) year-end bonus is part of the salary
Article 4 of the "Regulations on the Composition of Total Wages" of the National Bureau of Statistics clearly stipulates that bonuses are an integral part of total wages; Article 7 stipulates that bonuses are excess labor remuneration paid to workers and labor remuneration for increasing income and reducing expenditure. Article 2 of the "Regulations on the Composition of Total Wages" of the National Bureau of Statistics clearly stipulates that year-end bonuses (labor dividends) fall within the scope of bonuses. Therefore, the year-end bonus is an integral part of the salary. It is a bonus paid by the employer to the laborer at the end of the year through internal rules and regulations or labor contract agreements or other methods according to its own business conditions.
(II) year-end bonus is agreed rather than statutory
Article 47 of the Labor Law stipulates: "The employing unit shall, in accordance with the production and operation characteristics and economic benefits of the unit, independently determine the wage distribution method and wage level of the unit in accordance with the law." Therefore, the issuance of year-end awards belongs to the scope of the employer's independent management rights, and the law does not force the employer to issue year-end awards. According to whether the distribution is conditional, the year-end bonus is divided into fixed year-end bonus and conditional year-end bonus.
Principles to be followed in the distribution of 2. year-end bonus
The year-end bonus is usually paid in the following three ways: one is the labor contract agreement; the other is the rules and regulations; the third is that the employer determines the final amount of the year-end bonus for each employee based on the performance of the employee and the company's business performance. In the practice of referees, the two principles of "agreement priority" and "fairness and reasonableness" should be followed in determining whether the year-end bonus should be issued.
(I) the principle of "agreed priority" in the distribution of year-end bonus
The distribution of year-end bonus belongs to the scope of the employer's independent management right, and the employer may make an agreement with the laborer. If the year-end bonus is agreed in the labor contract and rules and regulations, the employer has the obligation to perform due to the agreement. When the employer should issue the year-end bonus, the worker can claim the legitimate rights and interests according to the agreement.
First,Workers should advocate the existence of the employer to issue year-end bonuses. In practice, many employers do not agree on the year-end bonus in the labor contract, rules and regulations and other written documents of the company, and the distribution of the year-end bonus is comprehensively judged by the employer according to the company's operating conditions and other factors in that year. Although the year-end bonus belongs to the salary, the employer can independently decide all matters concerning the payment of the year-end bonus. Therefore, the employer often denies the year-end bonus in arbitration or litigation. At this time, the worker must provide evidence to prove that there is an agreement on the year-end bonus in the labor contract or rules and regulations. If it cannot be provided, at least the employer must provide evidence that the employer has issued the year-end bonus, otherwise the worker may bear the legal consequences of failing to provide evidence. After the worker proves the fact that there is a year-end bonus, the employer shall bear the burden of proof for the conditions, time, method, amount, excess or deduction of the year-end bonus.Second,Whether the agreement on the year-end bonus in the labor contract or rules and regulations is legal, effective and clear. Regarding legality and effectiveness, it mainly refers to whether the content of the year-end bonus in the labor contract or rules and regulations conforms to the labor law and whether the legal procedures are fulfilled. As far as the labor contract is concerned, it mainly refers to whether the employer negotiates with the laborer on the terms of the year-end bonus in the labor contract, whether it explains the relevant terms, and whether the relevant terms exist in the circumstances stipulated in Article 18 of the Labor Contract Law. As far as rules and regulations are concerned, the rules and regulations related to the year-end bonus, as rules and regulations or major matters directly related to the vital interests of workers, shall be formulated and amended in accordance with the provisions of Article 4 of the Labor Contract Law. First, the workers' congress or all employees discuss and put forward plans and opinions. Secondly, negotiate with the trade union or employee representatives on an equal footing. Once again to perform the public notification procedure; Finally, in the implementation of the year-end bonus system, if the trade union or employees have any objection, they can put forward their opinions to the employer at any time, and the two parties shall make public the revision through consultation. With regard to clarity, it mainly refers to whether the matters concerning the year-end bonus in the labor contract or rules and regulations are clear, including the conditions of payment, the time of payment, the method of payment, the amount of payment, the excess or deduction, and so on.
Key words:
Year-end bonus, distribution, employer, worker, agreement, rules and regulations, labor contract, whether, regulation
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