Do companies that have reached retirement age but have insufficient social security years need compensation for dismissal?

Units that have reached retirement age but have insufficient social security years are dismissed without compensation.

When the laborer reaches the legal retirement age, even if the social security period is insufficient, the employer can terminate the labor contract according to law without paying economic compensation. If the employee's social security payment period is less than 15 years, the employer does not have to bear the liability for compensation. Workers have the right to choose to continue to pay fees until they reach the minimum age, or to transfer to other social endowment insurance to enjoy pension insurance benefits.

Protection of social security rights and interests:

1, basic old-age insurance: providing basic living security for retirees;

2. Basic medical insurance: reducing the economic burden caused by illness;

3. Work-related injury insurance: providing medical and economic compensation for employees who have suffered work-related injuries;

4. Unemployment insurance: providing living allowance for the unemployed for a certain period;

5. Maternity insurance: to protect the rights and interests of female employees during childbirth.

To sum up, when an employee reaches the statutory retirement age but does not reach the minimum social security payment period, the employer can terminate the labor contract without paying economic compensation, and the employee can choose to continue to pay social security or transfer to other pension insurance plans to ensure the pension benefits.

Legal basis:

People's Republic of China (PRC) labor contract law

Article 46

In any of the following circumstances, the employing unit shall pay economic compensation to the workers:

(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.

Article 47

The economic compensation shall be paid according to the standard of one month's salary for each full year of the employee's working years in the unit. For more than six months but less than one year, it shall be counted as one year; If it is less than six months, economic compensation of half a month's salary shall be paid to the workers. If the monthly salary of workers is three times higher than the average monthly salary of local workers announced by the people's government of the municipality directly under the central government or the city with districts where the employer is located, the standard for paying economic compensation to workers is three times the average monthly salary of workers, and the longest period for paying economic compensation to workers shall not exceed 12 years. The monthly salary mentioned in this article refers to the average salary of workers in the twelve months before the dissolution or termination of the labor contract.