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The influence of the new labor contract law on enterprise human resources.
The Influence of the Implementation of the New Labor Contract Law on Human Resource Management

The implementation of the Labor Contract Law has brought great influence to the management and development of human resources in China. The implementation of the Labor Contract Law puts forward higher requirements for human resource management in China, and the original methods of human resource management and development must be adjusted to adapt to the rules of the Labor Contract Law. Starting with the interpretation of the labor contract law, this paper analyzes its requirements for human resource management and development, and points out that the human resource management of the organization needs to be reformed from multiple angles and levels to adapt to the provisions of the labor contract law and meet the self-development of the organization.

Keywords: new labor contract law; Human resource management; Salary management; Institution building

The development of human resource management in China has no rivals. With the development of market economy, the gap between labor and capital in China is getting bigger and bigger, the contradiction between labor and capital is prominent, and social polarization is serious. In this context, the Labor Contract Law came into being. China is still very backward in the concept of human resources management, and the management of labor relations is very weak. In market economy countries, the core content of human resource management is the coordination of labor relations. The existing human resource management mainly focuses on cost control, which leads to low loyalty of workers to enterprises, high turnover rate of employees and unstable labor relations. Therefore, many enterprises cannot understand the requirements of the new law for signing long-term labor contracts. In fact, in the long run, enterprises will find the benefits. In the historic transformation of human resource management in China, human resource management is facing unprecedented challenges and brand-new strategic opportunities. The Labor Contract Law is both a challenge and an opportunity for an organization.

First, the historical background of the promulgation of the Labor Contract Law

Professor Chang Kai, director of the Institute of Labor Relations of China Renmin University and dean of the School of Labor and Personnel of China Renmin University, believes that there are three main reasons for the emergence of the Labor Contract Law: economic reasons, social reasons and political reasons.

1. Economic reasons. After 30 years of rapid and sustained economic growth, China has played its comparative advantage of low labor price to a great extent, but this road cannot go on forever. For economic reasons, the message of the new law is that the state guides and encourages enterprises to innovate to maintain sustained economic growth, rather than encouraging enterprises to rely solely on the comparative advantage of labor prices to maintain economic growth. It is an urgent and necessary task for China to change the mode of economic growth in order to maintain a high-speed and healthy economic development.

2. Social reasons. With the sustained and rapid economic growth, the wealth of the whole society has greatly increased, but the problem of social injustice has also become prominent. The social contradictions caused by the polarization between the rich and the poor have affected the economic stability and harmonious development of the whole society. In the past, the principle of distribution according to work stipulated in our constitution has actually been replaced by the trend of distribution according to capital and power, and social contradictions have become more and more acute. For social reasons, the message of the new law is: enterprises can't expand the gap between capital and labor distribution indefinitely, and they can't sacrifice the rights and interests of workers in exchange for the wealth growth of enterprises.

3. Political reasons

China is a socialist country, and the interests of the majority should be fully considered. If the interests of most people are not guaranteed, the foundation of socialism will be shaken, and the foundation of China's * * * production party will be shaken. For political reasons, the message conveyed by the new law is that the state cannot tolerate enterprises' contempt for the law, contempt for the authority of the state in treating workers, and damage the human foundation of the country.

Second, the challenge of labor contract law to the management of organizational human resources.

1. On the signing of labor contracts. In terms of the term of labor probation, the new law has been greatly refined. For example, if the labor contract is within 1 year, the probation period shall not exceed 1 month; In order to prevent enterprises from continuously signing contracts and agreeing on probation period from harming the interests of workers, it is stipulated that the same employer and the same worker can only agree on a probation period; A contract that only stipulates the probation period is not established, and it is regarded as the term of the labor contract; The new law also makes very clear provisions on signing open-ended labor contracts, which is more beneficial to workers.

2. About economic compensation. On the basis of continuing some previous provisions on economic compensation, the new law also expands and improves the scope and amount of payment of economic compensation. For example, in the past, the maximum economic compensation did not exceed 12 months. At present, there is no such restriction, but economic compensation is paid according to the actual working years of workers. Previously, it was stipulated that the employer and the employee agreed to terminate the labor contract, and the employer did not have to pay economic compensation. The new law stipulates that if the employer proposes to terminate the labor contract with the employee, it must also pay economic compensation. In addition, if the labor contract is not renewed upon expiration, the employer shall also pay economic compensation. The new law also stipulates that if the employer fails to pay the above-mentioned economic compensation in full and on time, and the labor department still fails to pay it within a time limit, the employer will pay 50% ~ 100% of the compensation payable. As can be seen from the above, the provisions of the new consumer law on economic compensation have obviously increased the pressure on enterprises and increased costs.

3. About liquidated damages. The new law only stipulates two situations in which liquidated damages can be agreed: first, if the employer provides special training fees for workers and conducts professional technical training, it can conclude an agreement with the workers to stipulate the service period and liquidated damages; Second, the employer and the employee make an agreement on keeping the business secrets of the employer and confidential matters related to intellectual property rights, and require the employee to pay liquidated damages for violating the agreement. In addition, the employer shall not agree with the employee that the employee shall bear the liquidated damages. This clearly prohibits enterprises from illegally asking workers to pay all kinds of liquidated damages when signing contracts with them, which greatly protects the rights of workers.

4. On the legal responsibility of enterprises. Strict disciplinary measures were taken against employers who violated the new law. For example, if a worker fails to sign a labor contract for more than one month but less than one year, he shall pay the worker twice the monthly salary. For another example, an open-ended labor contract should be concluded with the employee rather than with the employee, and the employee should be paid twice the salary every month from the date when it should be concluded. In addition, the new law provides severe punishment measures for employers who refuse to sign contracts with workers, illegally stipulate probation period, detain workers' certificates, refuse to handle file transfer procedures, illegally collect workers' finances, default on wages, overtime pay and economic compensation, and other illegal acts that harm workers' rights and interests. Making the cost paid by enterprises when infringing on the interests of workers higher than their illegal interests is conducive to standardizing the labor management system, strictly abiding by the law, and promoting social harmony and stability.

Thirdly, analyze the problems existing in human resource management in China.

1. The current human resource management pays too much attention to cost control and ignores the coordination of labor relations. Manpower is a resource that can create more value, not a cost. Enterprise's management of people emphasizes the adaptation between people and things through "control" and "obedience", but ignores the exertion of talents, regards people as the cost of development rather than resources, focuses on how to save costs and ignores the training and development of employees; The implementation of traditional personnel management makes people unable to give full play to their talents and lack work enthusiasm and creativity. The various practices of enterprises make the labor-capital relationship tense, and employees lack the recognition of the enterprise, which leads to the failure to give full play to the potential of human resources.

2. The current human resource management is not enough to cultivate corporate culture. Excellent corporate culture is an important foundation for successful human resource development and management. However, it is not easy to make a culture deeply rooted in people's hearts and universally accepted. Its formation needs long-term exploration and running-in. It should be suitable for enterprises and promote their development. At the same time, it should infect every employee and highlight its own characteristics. Due to the lack of strategy, initial conditions, macro-and micro-economic limitations and other restrictive reasons, the construction of corporate culture in China enterprises is quite difficult, which eventually destroys the working environment of employees.

3. Not paying enough attention to performance management and failing to establish a better scientific performance management system. The implementation of scientific performance management has become an important means and tool of human resource management in enterprises, an important way for enterprises to make full use of resources, cultivate core competitiveness and gain competitive advantage, and has an important supporting role in realizing the sustainable development of enterprise system. But in practice, there are various problems. The unscientific design of performance appraisal system, the fuzziness of performance appraisal standards, the singleness of performance appraisal angle and the formalization of appraisal process are all manifested in China enterprises to varying degrees.

Four, some suggestions on organizational human resource management

1. Create a good organizational culture and establish a reasonable salary structure. The new law improves the status of workers and gives them more choices. Therefore, for all enterprises, attracting and retaining core employees will be an important part of enterprise human resource management. Although the new law sets various restrictions on the dissolution of the labor contract by enterprises and provides many compensation clauses, it only stipulates in Article 90: "If a worker dissolves the labor contract in violation of the provisions of this law, or violates the confidentiality obligation or non-competition agreed in the labor contract, causing losses to the employer, he shall be liable for compensation." It is easier for employees to change jobs, and the restrictions on employees' job-hopping are getting smaller and smaller. Attracting employees through salary increase will only reduce employee loyalty, and enterprises will fall into a vicious circle of wage competition. To attract and retain core employees, enterprises need scientific human resource management, shape a good corporate culture and design a scientific salary structure to attract and retain core employees. 2. Establish a reasonable and effective salary system. Because the new law stipulates that enterprises need to agree on labor remuneration when signing labor contracts with employees, and paying economic compensation to employees is also based on employees' wages, enterprises should pay more attention to the concept of comprehensive compensation system. In the case of reducing the basic salary, in order to effectively motivate existing employees, enterprises will pay attention to other salary components besides wages.

It is necessary to increase the ratio of performance salary increase to floating salary, and pay attention to long-term incentive salary such as employee stock ownership; The incentive effect of welfare on employees is limited, so enterprises should pay basic social insurance for employees according to the basic requirements of law, and design a reasonable paid vacation system; Enterprises should pay more attention to flexible work arrangements, pay more attention to the health of employees, and give some support and help to employees when they need help; Enterprises should improve performance management ability, continuously improve performance planning, performance monitoring and performance feedback, and improve employees' job satisfaction; Career development and promotion opportunities are another important aspect that enterprises need to pay attention to. Staff skills training, job training and guidance, and more career development opportunities will make employees no longer pay too much attention to salary factors when choosing enterprises. At the same time, Article 22 of the new law stipulates: "If an employer provides special training fees for workers and provides them with professional and technical training, it may conclude an agreement with the workers to stipulate the service period. Workers who violate the service period agreement should pay liquidated damages to the employer according to the agreement, which makes organizing regular training an important way for enterprises to retain core employees.

3. Select talents and organize training. In the recruitment process, enterprise human resource management will invest more energy than before. According to the provisions of the new law, enterprises need to pay certain economic compensation to employees when dismissing them, which will directly lead enterprises to be more cautious in recruitment than before, and the concept of "rather short than much" will become an important principle of the human resources recruitment department of enterprises. When recruiting the head of the human resources department, we should first select people who know the law and have experience, and hire labor law experts to train the human management personnel of the employer in the new law. In order to strengthen the management of the recruitment system, enterprises need to establish a set of quality model, which is convenient for enterprises to recruit talents who meet the corporate culture and values, meet the requirements of post core quality and ability, and at the same time meet the future development strategy of enterprises, so as to prevent losses caused by careless recruitment.

4. Strictly formulate labor rules and regulations, and clarify the human resource management system. The new law will urge enterprises to strengthen the internal human resource management system. Because the new law stipulates that the enterprise can terminate the labor contract relationship with the employee only if the employee is incompetent or seriously violates the enterprise rules and regulations. This requires enterprises to establish a strict internal human resource management system, formulate scientific job descriptions and clear performance indicators for each post, and clearly define what is "incompetence" and what is "serious violation of enterprise rules and regulations". Otherwise, enterprises will be very passive in the face of labor contract lawsuits filed by employees.

Verb (abbreviation of verb) conclusion

In short, as long as our human resource managers fully consider the interests of both enterprises and employees when formulating the structure of human resources, rather than simply starting from the interests of enterprises, they will not feel flustered in the face of the new law.

References:

[1] The new labor contract law promotes the legal management of human resources [N]. China Securities Network-shanghai securities news, 2007- 1 1-09.

[2] Huang Haidong. New human resources under the labor contract law [EB/OL]. Chengdu Iron and Steel Network, 2007- 12-3.

[3] Human resource management under the new labor law [EB/OL]. Sina Finance, 2007- 12- 19.

[4] People's Republic of China (PRC) Labor Contract Law.

[5] Wang Liming. Research on Contract Law: Volume II [M]. Beijing: Renmin University of China Press, 2003: 696.