Abstract:In order to further solve the problems in surplus workers in state-owned enterprises (SOEs) and in higher human cost of production and so on, the state-owned enterprises implement the policy of "reducing the number of workers to improve the benefit" to promote further development of the SOEs. Many enterprises use the policy "to terminate the working relation with the surplus workers by economically compensating the workers", but, currently, Chinese Government has not had any specific laws and regulations to standardize and guide this behavior of the enterprises, there are a lot of problems, especially economic compensation funds, in this process. Thus, the related laws and regulations about economic compensation funds should be unified and the problem should be carefully solved by the enterprises.