[Direct answer]This is not the case. The union's consent is just one of the procedural steps in economic layoffs. According to Article 41 of the Labor Contract Law of the People's Republic of China (amended and implemented on December 28, 2012), legal layoffs must meet both substantive conditions (such as restructuring under bankruptcy law, serious difficulties in production and operation, technological innovation and adjustment of business models, or other objective economic changes) and procedural conditions (laying off more than 20 employees, or less than 20 but more than 10% of the total number of employees, informing the union or all employees of the situation and hearing their opinions 30 days in advance, and then reporting the layoff plan to the labor administrative department). If the reporting step is missing, if the legally prioritized retained employees are laid off, or if the substantive conditions are not valid, the union's approval is still illegal, and employees can claim 2N compensation.

1. Problem background and typical scenarios

The company initiated layoffs due to operational difficulties. After holding a meeting with the union and obtaining their "consent", the company sent termination notices to the employees on the list. However, when the laid-off employees sought legal protection, they discovered that the layoff plan had not been reported to the labor department, that they were eligible for priority retention, and even that the company's orders had not actually declined. The union process was treated as a "compliance endorsement", which is precisely the most common misunderstanding.

II. Key points of dispute

First, the applicable thresholds for the number and proportion of employees. Second, the factual review of physical conditions. Third, rules on prioritizing retention and recruitment. Fourth, the scope of employees who cannot be laid off.

III. Professional analysis by Henglue Lawyers

The legality of economic layoffs requires a dual review of both formality and substance, and the true role of trade unions needs to be properly positioned. **First layer: Thresholds and procedural overview** To initiate the economic layoff process under Article 41, the number of redundancies must exceed 20, or be at least 10% of the total workforce, unless the threshold is not met, in which case layoffs must follow regular procedures (e.g., consultation under Article 40). The statutory procedures after meeting the threshold consist of three steps: 1. Notify the trade union or all employees of the situation and provide production and operational status information 30 days in advance; 2. Carefully listen to union or employee opinions; 3. Report the layoff plan to the labor administrative department. These three steps are parallel obligations. The trade union's opinion is just one step, and failing to report the plan is the most common procedural flaw leading to legal defeats in judicial practice. **Second layer: Factual basis of substantive conditions** Four conditions must be met: 1. Reorganization under the Enterprise Bankruptcy Law; 2. Serious operational difficulties; 3. Major technological innovations or operational adjustments; 4. Significant changes in the objective economic conditions at the time of contract signing. All conditions must be supported by corresponding evidence (financial statements, reorganization rulings, audit reports, etc.). "Feeling operational difficulties" does not constitute a condition, and the employer's failure to provide evidence constitutes legal violations. **Third layer: Personnel restrictions** Priorities must be given to employees with fixed-term or indefinite-term contracts and those with family members who need support (e.g., elderly or minors). Within six months of rehiring, the employer must notify the laid-off employees and offer them priority hiring under equal conditions. The following groups cannot be laid off: - Occupational disease hazard operations without pre-employment health checks or suspected occupational disease patients in the diagnosis observation period; - Employees diagnosed with occupational diseases or work-related injuries and confirmed to have lost or partially lost their work capacity; - Employees on statutory medical leave during illness or injury; - Female employees in the "Three Periods" (pregnancy, childbirth, and lactation); - Employees who have worked continuously for 15 years and are less than five years away from retirement. **Fourth layer: Practical advice for employees** Upon receiving layoff notifications, verify four key points: 1. Whether the layoff list includes legally protected and priority retention targets; 2. Whether the briefing and opinion-gathering sessions actually occurred; 3. Whether the plan was reported to labor authorities; 4. Whether the compensation package meets legal standards (N-month salary, with no severance pay obligation for economic layoffs). Any omission can trigger legal claims within one year. **Reminder to employers**: Treating trade union meetings as a formality or reporting obligations as optional are the most costly misconceptions in layoff compliance. Preparing compliance plans and compensation packages in advance is far more cost-effective than responding to mass litigation afterward.

IV. Practical suggestions and legal basis

The first step is to verify the factual evidence of the threshold for layoffs and the actual conditions; the second step is to check the implementation traces of the three-step procedures of explanation, hearing opinions, and reporting; the third step is to compare the priority retention list with the list of personnel who cannot be laid off; the fourth step is to collect fixed evidence of insufficient compensation or illegal procedures, and apply for arbitration within one year. Main legal basis: Article 41, Article 42, Article 46, Article 47, and Article 87 of the Labor Contract Law of the People's Republic of China (amended and implemented on December 28, 2012); the provisions on hearing the opinions of trade unions on layoffs in enterprises in the Trade Union Law of the People's Republic of China (amended and implemented on January 1, 2022); the specific application shall be subject to the currently effective provisions.

5. Henglu Law Firm's Advice

Three key points regarding economic layoffs: The union's consent is just a first step; the three procedures of explaining, listening, and reporting are indispensable; if the list bypasses the priority and restricted areas, the dismissal is illegal; the compensation must be N and paid in full; and procedural flaws can be exchanged for 2N. Those involved in defending their rights against layoffs can seek help through the following channels:Labor arbitration and work-related injury compensationThe service provides a comprehensive solution, which involves resolving compensation disputes in a coordinated manner.Special servicesFor reference, you can refer to the compliance requirements for corporate layoffs when dealing with this issue.Intellectual property protection and corporate lawFor inquiries about the implementation of compensation payments for this column, please feel free to contact usCreditor's rights and debts, and enforcementTeam.

VI. Frequently Asked Questions

Q1: How many people need to go through the Article 41 procedure for layoffs?

For layoffs of more than 20 employees, or less than 20 but accounting for more than 10% of the total number of employees in the enterprise, the employer must go through the procedures of explanation, hearing opinions, and reporting; for layoffs that do not meet the threshold, the employer must still comply with the regular statutory conditions.

Q2: Is there an N+1 compensation package for economic layoffs?

For economic layoffs, the employer shall pay economic compensation N in accordance with Article 46. Article 41 does not fall under the exceptions stipulated in Article 40, and there is no legal obligation to pay a notice fee. However, if the employer voluntarily pays a higher amount than the standard, that's a different matter.

Q3: What should be done with pregnant employees on the layoff list?

The female employees in the third period are protected by Article 42, which prohibits layoffs. Any layoffs against them are illegal. They can claim to continue their employment or demand compensation of 2N for unlawful dismissal, and request the restoration of their positions and benefits.

Q4: How much does it cost and take to protect one's rights?

Arbitration is free of charge, and attorneys' fees are negotiated based on the proportion of the subject matter. Disputes over mass layoffs are usually resolved through collective negotiations and arbitration in parallel. The processing time for individual cases is measured in months, and claims with clear procedural violations can be resolved efficiently.

Q5: Can I request to return to my previous position now that the company is hiring new staff?

For those who are reemployed within six months, the employer shall notify the laid-off employees and give them priority in recruitment under the same conditions; if the employer fails to notify them or give them priority in recruitment, it may be used as one of the bases for claiming corresponding responsibilities.

The above Q&A is mainly based on the judicial practice in Beijing. There may be differences in the interpretation of the law in different regions. It is recommended to consult a professional lawyer based on the specific circumstances of the case.

If you are currently facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the necessary evidence to avoid missing the statutory time limit.Labor arbitration legal services·Beijing Henglue Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and public adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. In case of disputes, please consult a practicing lawyer in time.