Legal information

Introduction to the article: From the basic compensation methods for enterprises to vacate, how to compensate restaurants, hotels, shops, farms, planting bases and other industries, and how to compensate companies and factories, let’s talk about how to make reasonable compensation when enterprises are faced with demolition and vacation.

1. Basic compensation methods for enterprise vacation

1. Basic compensation

(1) The compensation price can be negotiated between the two parties, or the compensation amount for house decoration can be determined through professional evaluation by an evaluation agency.

(2) Monetary compensation = appraised price of legally owned property + compensation amount for house decoration.

(3) The difference in compensation for vacating = the appraised price of the legally owned property + the compensation amount for house decoration – the appraised price of the house for which the vacated person obtains the property rights exchanged

2. Resettlement compensation fee

(1) A compensation needs to be given to the vacated person and lessee, that is, resettlement compensation.

(2) Resettlement compensation = relocation subsidy + temporary resettlement subsidy + temporary resettlement subsidy beyond the transition period + compensation for losses due to production and business suspension

2. How are restaurants, hotels, shops, farms, planting bases and other industries compensated?

(1) House compensation for restaurants, hotels and shops.

1. For production and operation buildings approved by the planning department, compensation will be given based on the new assessment based on the specific use functions and properties approved by the planning department.

2. Houses whose use functions are changed without approval from the planning department and used for production and operation will be compensated based on the replacement price of the collective land residential house combined into a new assessment.

3. Temporarily constructed houses used for production and operation that have not exceeded the approved use period shall be evaluated and determined based on the replacement price and the remaining use period.

(2) Compensation for losses caused by suspension of production and business.

1. For enterprises that Yingting believes meet the reconstruction conditions, the suspension of production and business suspension compensation time shall be determined according to the reconstruction period determined by the evaluation agency. The compensation time for losses due to suspension of production and business operations of enterprises that do not meet the conditions for reconstruction shall be determined based on the time required for statutory liquidation.

2. For enterprises that meet the conditions for reconstruction, the compensation standard for losses due to suspension of production and business operations can be determined by referring to the average monthly production (operation) costs of the enterprise in the previous year and the expenditures for replacement of fixed assets, technical transformation, and resettlement of employees. For enterprises that do not meet the conditions for reconstruction, the compensation standard for losses from suspension of production and business operations shall be determined based on the actual losses caused by the enterprise's suspension of production and business operations, including the costs involved in resettling employees.

(3) Ancillary compensation such as relocation.

1. The equipment relocation, installation and debugging costs of the demolished persons will be compensated according to the assessed amount;

2. The equipment of the demolished persons that cannot be restored to use will be compensated based on the replacement price and combined into a new assessment.

(4) Compensation for decoration of restaurants, hotels, and shops.

The decoration compensation involved must be measured and evaluated by the evaluation agency to obtain the evaluation results.

(5) Compensation for breeding farms and planting bases

When a breeding farm is closed down, prohibited from breeding, or the house is vacated, in addition to the above basic compensation, compensation must also be included for the animals raised in the farm, and for the green seedlings and trees on the ground at the planting base.

3. How are companies and factories compensated?

(1) Regional compensation price for land use rights

1. Land contract management rights. Villagers in this village contract relevant land on their own land and have the right to contract and operate the land.

2. The right to use collective construction land. Obtaining the collective construction land use right certificate may be obtained through auction, one-time buyout, etc.

3. The method of transfer and allocation of state-owned land use rights. The qualification of industrial land obtained through the transfer of state-owned land, or the land use rights obtained through allocation. However, the lease right is still within the scope of creditor's rights and has no form of property rights, so there is no land use right compensation for the lease right.

(2) Replacement of factory buildings to new prices

The replacement price of a factory building is how much it costs to build it again after it is reset, including buildings, structures, and facilities. As long as the building meets the fixed form of the factory building, it should be calculated as a house.

(3) Loss expenses due to suspension of production and business

Yingting Tips: First of all, the registered address and the actual business address must be consistent. It must be a legal enterprise with a business license, tax registration, tax records, and actual business activities, and a normal business enterprise. Only in this way can we obtain the loss compensation for suspension of production and business.

(4) Decoration accessories

(5) Machinery and equipment

Equipment can be divided into movable and immovable. Immovable equipment must also be reset to a new price. Compensation for movable machinery and equipment is included in the relocation costs.

(6) Relocation expenses

(7) Compensation plan

1. Land replacement

If you only choose land replacement and continue to build factories on the land after the replacement, you can get compensation for ground attachments.

2. Land plus housing resettlement

3. Other compensation methods

Editor/Original Author: Yingting Demolition Lawyers Group