Automatic renewal clause of labor contract when it expires

The relevant provisions of the automatic extension clause of the labor contract are valid. However, if the original labor contract does not stipulate that the contract will be automatically extended after its expiration, then there is no problem of automatic extension of the labor contract, and both parties should sign the labor contract again. If there is a similar agreement at the beginning, it is deemed that both parties continue to perform according to the original contract.

1. Is the automatic extension clause of the labor contract valid?

If the contract stipulates an automatic extension, it is valid.

The renewal of a labor contract refers to the legal act of both parties to continue to sign a labor contract with the same or different contents as the original labor contract after the expiration of the labor contract. The Interpretation of the Supreme People's Court on Several Issues Concerning the Application of Laws in the Trial of Labor Dispute Cases 1 stipulates: "After the expiration of the labor contract, the laborer still works in the original employer, and if the original employer does not raise any objection, it is deemed that both parties agree to continue to perform the labor contract under the original conditions. If one party proposes to terminate the labor relationship, the people's court shall support it. " It can be seen that after the expiration of the original labor contract, if both parties have no objection to continuing to implement the wages, welfare standards and working conditions agreed in the original labor contract, it shall be deemed that both parties continue to perform in accordance with the agreed contents of the original labor contract by default. The situation that the labor contract is not renewed but continues to work after it expires belongs to the situation that the labor contract is automatically renewed, so there is a labor relationship between the employee and the employer.

Two, not to renew the labor contract but continue to work related issues

1, economic compensation

Article 46 of the Labor Contract Law stipulates that "in any of the following circumstances, the employer shall pay economic compensation to the laborer:

(1) The laborer terminates the labor contract in accordance with the provisions of Article 38 of this Law;

(2) The employing unit proposes to terminate the labor contract with the laborer in accordance with the provisions of Article 36 of this Law, and the labor contract is terminated through consultation with the laborer;

(3) The employer terminates the labor contract in accordance with the provisions of Article 40 of this Law;

(4) The employer terminates the labor contract in accordance with the provisions of the first paragraph of Article 41 of this Law;

(5) Terminating a fixed-term labor contract in accordance with the provisions of the first paragraph of Article 44 of this Law, except that the employer maintains or improves the conditions stipulated in the labor contract to renew the labor contract and the employee does not agree to renew it;

(6) The labor contract is terminated in accordance with the provisions of Item 4 and Item 5 of Article 44 of this Law;

(seven) other circumstances stipulated by laws and administrative regulations.

The situation that the labor contract is not renewed upon expiration but continues to work belongs to the situation that the employer has not signed a labor contract with the employee, and the employee may ask the employer to pay economic compensation. "The situation that the labor contract is not renewed upon expiration but continues to work belongs to the situation that the employer has not signed a labor contract with the employee, and the employee may ask the employer to pay economic compensation, that is, double the salary.

2, the terms of the contract

When the contract is automatically renewed, it will continue to be performed according to the original terms of the labor contract by default, but the original terms of the contract are not included. In other words, the salary and welfare benefits of automatic renewal shall not be lower than that before renewal.

3. Number of renewals

According to the Labor Contract Law, if the labor contract is renewed for more than two times, the employer shall sign an open-ended labor contract with the employee.

There is no clause in the legal system that prohibits the employer from agreeing in the original contract that the contract will be automatically extended when it expires, so such a clause does not violate any national legal system, and the arbitral tribunal or the people's court will naturally not consider it invalid. However, if the labor contract is not renewed for the second time, after the expiration of the third labor contract, both parties shall form an open-ended labor relationship.