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The legal consequences of not signing the contract are as follows:
Although the Labor Contract Law does not stipulate that the employer must sign a labor contract with the employee, judging from the legal consequences of never signing a labor contract, if the employer does not sign a labor contract with the employee, the employer will face the following risks:
(1) Penalty of double salary
If the employer fails to sign a labor contract with the employee for more than 1 month, it shall pay the employee twice the salary. (Shandong Province Labor Contract Regulations once stipulated that if a contract is not signed, the employer shall pay the laborer three times the minimum wage in addition to the salary. Employers do not sign labor contracts with workers, but also face a credit risk. Even if the employer and the employee have reached an oral agreement, there is no need to sign a labor contract, but if the employer finally fails to meet a certain demand of the employee, the employee can report to the labor department at any time and demand to pay twice the salary. Therefore, enterprises should sign labor contracts to reduce operating costs and risks.
(2) Determine that the contractual relationship with no fixed term is established.
If the employer fails to sign a labor contract with the employee for more than one year from the date of employment, it shall be deemed that the employer has signed an open-ended labor contract with the employee. One concept that needs attention here is the open-ended labor contract. Someone once confused the open-ended contract with the open-ended labor contract, thinking that since it is open-ended, the contract can be terminated at any time. This is not right. An open-ended labor contract is a long-term contract in which workers can work in the employing unit when they reach retirement age, so it also has a time limit, but it is not convenient to unify; Of course, even if you sign an open-ended labor contract, it is not an iron rice bowl. An open-ended labor contract is only the time not agreed by both parties, and other issues need to be agreed by both parties. The employer may also terminate the labor contract if it complies with the law. If an open-ended labor contract relationship is established, if the employee does not terminate the contract in violation of the law, then the employer cannot terminate the contract at will, so the employer reduces the employee's right to choose. For the employer, some people may leave things that can be used or their predecessors idle for the development of other talents, resulting in a waste of personnel and resources.
In addition, some employers, under the banner of probation, do not sign contracts with workers and pay lower wages, but after working for a period of time, they drive away probationary personnel to achieve the purpose of using cheap labor. The probation period is an integral part of the term of the labor contract. As long as the employment relationship is established between the employer and the employee, the labor relationship is established, which should be bound by the labor contract law, and the employer has the obligation to sign a labor contract. If the above-mentioned situation exists in the relevant employer, and the two parties have not agreed on remuneration, the laborer may require the employer to pay wages according to the standards agreed in the collective contract. If there is no collective contract, it may be required according to the standard of equal pay for equal work; If there is an agreement, but the agreement is low (lower than the minimum wage for the same position, or lower than 80% of the agreed wage, lower than the minimum wage standard), it can be regarded as no agreement, and the laborer can ask the employer to pay wages in accordance with the above provisions. If the employment period exceeds one month, you can double your salary according to the above two paragraphs, and if it exceeds one year, you can ask to continue to perform the labor contract.