Compensation disputes on the rise at work
DISPUTES over compensation for terminations of work contracts are on the rise, according to the Shanghai Labor and Social Security Bureau in its quarterly report released yesterday.
The arbitration division received 1,400 disputes about work contract termination during the first quarter of this year. Of those, about 75 percent were over compensation.
“Nowadays most employees choose to get compensation when it is illegal for the company to terminate a contract instead of insisting to stay in the company,” said Sui Wei, vice director of the bureau’s arbitration division.
“Most of the employees involved in these kinds of disputes are between the age of 18 and 40, and it has become a trend to prefer compensation,” Sui said.
Most disputes occur in private enterprises.
Other main causes of disputes are wage and insurance benefits, according to the report.
“But the number of disputes over arrears of wages has decreased by about 30 percent,” Sui said.
The number of dispute applications that can be handled by arbitration has been increased, Sui said.