Gansu Liu Jian's Resignation Punishment

Liquidated damages are generally equal to the actual economic losses caused by breach of contract. The amount of liquidated damages shall be agreed by both parties. But the maximum shall not exceed 30% of the losses suffered. If it exceeds 30%, it may request the court to reduce it appropriately.

Resignation penalty refers to the money that one party should pay to the other party when it breaches the contract according to the agreement of the parties or the direct provisions of the law. The standard of liquidated damages is money, but the parties may also agree that the subject matter of liquidated damages is other property than money. Article 113 of the Contract Law stipulates that if one party fails to perform its contractual obligations or fails to perform its contractual obligations as agreed, thus causing losses to the other party, the amount of compensation shall be equivalent to the losses caused by the breach of contract, including the benefits that can be obtained after the performance of the contract, but shall not exceed the losses that the breaching party foresaw or should have foreseen when concluding the contract.