Ku6 faces questions over staff dismissals
By Ding Yining |
May 27, 2011, Friday
|
Print Edition
Print Edition
KU6 Media Co may have to postpone a plan to lay off 20 percent of its sales team after human resources authorities in Beijing intervened and ordered it to correct problems which occurred in the retrenchment procedure.
The company said yesterday it has received a notice from the human resources and social security bureau in Haidian District in Beijing, which pointed out that the retrenchment violated labor laws as the lay-off process was not followed.
The bureau has given Ku6 up to the end of the month to ensure the correct process was followed.
Some employees at Ku6 Media complained to the bureau last week over irregularities such as not being informed in advance or given written notices.
Ku6 Media said in a statement yesterday that it would not change its original plan to retrench or increase the compensation package for laid off employees but will investigate to find out if there were any flaws during the dismissal process. It may appeal against the bureau's order.
The Labor Law stipulates that companies should give employees one-month notice if they plan to lay off 20 of them or more than 10 percent of its payroll.
Scuffles broke out at Ku6's offices in Shanghai on May 18 after the firm decided to lay off 20 percent of its sales team when human resource officials at Ku6 Media were alleged to have beaten up colleagues after the announcement.
Vice Presidents Hao Zhizhong and Zeng Xinghua were also dismissed after they refused to sack members of the team as they didn't agree with the deal offered to those who were being laid off.
The company said yesterday it has received a notice from the human resources and social security bureau in Haidian District in Beijing, which pointed out that the retrenchment violated labor laws as the lay-off process was not followed.
The bureau has given Ku6 up to the end of the month to ensure the correct process was followed.
Some employees at Ku6 Media complained to the bureau last week over irregularities such as not being informed in advance or given written notices.
Ku6 Media said in a statement yesterday that it would not change its original plan to retrench or increase the compensation package for laid off employees but will investigate to find out if there were any flaws during the dismissal process. It may appeal against the bureau's order.
The Labor Law stipulates that companies should give employees one-month notice if they plan to lay off 20 of them or more than 10 percent of its payroll.
Scuffles broke out at Ku6's offices in Shanghai on May 18 after the firm decided to lay off 20 percent of its sales team when human resource officials at Ku6 Media were alleged to have beaten up colleagues after the announcement.
Vice Presidents Hao Zhizhong and Zeng Xinghua were also dismissed after they refused to sack members of the team as they didn't agree with the deal offered to those who were being laid off.
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