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What does it mean to buy out social security?

Legal analysis: social security buyout refers to the one-time compulsory buyout of employees' social security by the unit and the one-time allocation of funds to employees. In fact, it is to terminate the labor contract with employees and turn the employment crisis of employees into society.

Legal basis: Article 34 of People's Republic of China (PRC) Labor Contract Law. Where the employing unit is merged or divided, the original labor contract shall remain valid, and the employing unit that inherits its rights and obligations shall continue to perform it.