Common use of Economic Compensation Clause in Contracts

Economic Compensation. 10.1 In the event that the Contract is terminated in any of the following cases, Party A shall, according to the years that Party B works with Party A and the 12-month average salary of Party B prior to the termination of the Contract, pay economic compensations to Party B at the rate of one-month average salary for each year and the period less than one year will also be deemed as one year, and no more than 12 months at most: (a) Party A, in accordance with Article 8.1 of the Contract, forwardly puts forward to terminate the Labor Contract with Party B; (b) In the event that the circumstances provided in Article 8.3 of the Contract happen to Party B, Party A fails to inform Party B 30 days in advance; 10.2 In case that the Labor Contract is terminated in any of the following cases, Party A may not pay economic compensations to Party B: (a) Party B terminates the Labor Contract in accordance with Article 8.1 of the Contract; (b) Party B, in accordance with Article 8.5 of the Contract, forwardly proposes to terminate the Labor Contract; (c) Party B terminates the Labor Contract in accordance with Article 8.6(a) of the Contract; (d) Party A terminates the Labor Contract in accordance with Article 8.2 of the Contract.