BEIJING, January 21(TMTPOST) —Baidu Game is struggling to reach an agreement on layoff compensation with its employees weeks after the announcement of a layoff plan.

The company planned to provide employees that are let go with an N+1 or N+0.5 compensation package. After the compensation plans were announced, Baidu Game required laid-off employees to choose between the compensation plans before a deadline or the company would terminate the labor contracts with the employees.

Baidu Game’s compensation policy was a great disappointment to its staff because the company’s year-end bonus is usually the amount of 16 months’ salary. Getting fired at the year end and being offered only an N+1 or N+0.5 compensation plan would be a major loss for the majority of the employees that are let go. Baidu Game did not mention about compensation for the year-end bonus in its compensation policy.

Since January, most of the employees at Baidu Game have been going to work as business as usual in protest of the layoff plan and relevant compensation policy.

Baidu has recently come up with new compensation plans, increasing monetary compensation for the employees that are being let go. According to the new plans, employees who agree with the company to terminate the labor contract would receive a compensation of N+2 or N+3. This means that employs who have worked at Baidu Game for six months are entitled to a compensation of two months’ salary. Employees who have already signed agreements to terminate their labor contract are also entitled to the compensation.

Some employees at Baidu Game accepted the new compensations plan and had signed agreements to terminate their contract, Jiemian reported, quoting sources familiar with the matter. However, there are also employees who are still negotiating with Baidu Game for better compensation plans.

Baidu Game does not have any contingency plan for its ongoing projects, sources familiar with the matter said. It remains unknown how Baidu Game will handle existing business cooperation and deals with other companies.

The company has realized the ramification of the sudden layoff and retained some of its business representatives to handle the remaining projects.