The Function and Nature of Economic Compensation in Employment Contract and Improvement of This System

The economic compensation in employment contract has the following functions: restraint,supplement and indemnification. As far as the nature of economic compensation is concerned,the economic compensation in employment contract has the nature of subsidy,sanction,and legal restriction because the items of compensation are different. There are two problems in the economic compensation: firstly,the continuity of the contracts of employment has not been taken into consideration;secondly,the system of revision of employment contract needs to be improved. The requirement of the employment contract without fixed terms should be decided according to the nature and the duration of the contract. The economic compensation will be given if the contract without fixed terms is terminated. The economic compensation will not be given if the contract with fixed terms is terminated. In addition,the employers should be empowered with more power in placement of employees.