Why do many companies sign liquidated damages contracts when recruiting new people?

Every graduation season, many graduates have to go through written tests and interviews and apply for jobs in various companies, hoping to find a job that suits them. Many netizens found that entering the company would sign a liquidated damages with the company, and many companies would also ask these new people to sign a liquidated damages when recruiting new people into the company. Many people don't understand why companies sign default agreements. In fact, the breach of contract voluntarily demanded by general companies is a guarantee for their own interests.

Protect your rights and interests. Every company recruits employees or chooses an employee who has passed the interview, so it also faces some risks and losses. The purpose of signing a breach of contract is to prevent newcomers who have passed the application from coming to work. If you don't come to work, you must pay liquidated damages, which is a kind of compensation for the company. If you don't come to work, the company will definitely go to the job fair to waste some time and money. In addition, many companies will require newcomers to enter the company and leave after working in the company for some years, and the company will also sign it. Because it is not easy for the company to train a person, as a newcomer to the company, there will definitely be all kinds of people to train you. It is a loss for the company to leave the company after training.

Signing a contract is a guarantee for both parties. According to the provisions of our national labor law, employees and companies need to sign contracts when they join the company. This is not only the protection of workers' labor rights and interests, but also the requirement of the company. Many companies will add liquidated damages to their contracts. Mainly in order to protect the company's own rights and interests, a constraint on workers.

As an adult, you should understand that if you sign a contract, you will bear corresponding legal responsibilities. Therefore, for some newcomers, you must read every clause of the contract carefully and sign it after making sure it is correct to prevent some other accidents in the future.