China: Short-time work encouraged to avoid dismissals

Submitted by mmarquez on Thu, 04/09/2020 - 10:55
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mohrss.gov.cn (24.01.2020) If the enterprise is affected by the epidemic, which leads to difficulties in production and operation, it may stabilize the work position through consultation with employees, such as adjusting salary, rotating rotation, shortening working hours, etc., and try not to reduce or reduce the number of employees. Qualified enterprises can enjoy post-stabilization subsidies as required. If an enterprise suspends production and suspends production within a salary payment cycle, the enterprise shall pay the employee's salary in accordance with the standards stipulated in the labor contract. If the employee provides normal labor for more than one wage payment period, the wage paid by the enterprise to the employee shall not be lower than the local minimum wage standard. If the employees do not provide normal labor, the enterprise shall pay living expenses, and the living expenses standards shall be implemented in accordance with the regulations stipulated by the provinces, autonomous regions, and municipalities directly under the Central Government.

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Employers may reduce wages and working hours as well as adjust work positions and leave policies. They may also apply for governmental subsidies under certain conditions. 

If operations are suspended during a payment cycle because of reasons external to the employee’s responsibility (e.g. by the governmental measures against the coronavirus infections), the employer has to pay regular wages according to the employment contract. Should the work stoppage last longer than one payment cycle and if the employee has been providing normal work, the local minimum wage standard must be complied with. In cases where no normal work has been provided during the prolonged work stoppage, the employer shall pay the local living fees to the employee.

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 Notice of the General Office of the Ministry of Human Resources and Social Security on the proper handling of labor relations during the prevention and control of pneumonia outbreaks of new coronavirus infections

Mingshe [2020] No. 5

Human Resources and Social Security Departments (Bureaus) of provinces, autonomous regions, municipalities directly under the Central Government and Xinjiang Production and Construction Corps:

In order to do a good job in the prevention and control of the pneumonia epidemic caused by new coronavirus, properly handle the labor relations during the epidemic prevention and control, safeguard the legitimate rights and interests of employees, protect the normal production and operation order of the enterprise, and promote the harmonious and stable labor relations, the relevant issues are notified as follows:

1. For employees of pneumonia, suspected patients, and close contacts of new coronavirus infection who are unable to provide normal labor during their isolation treatment or medical observation, and because the government implements isolation measures or other emergency measures, the enterprise shall pay employees The remuneration for work during this period shall not be rescinded from employees in accordance with Articles 40 and 41 of the Labor Contract Law. During this period, if the labor contract expires, it will be postponed to the end of the employee's medical period, the medical observation period, the isolation period or the emergency measures taken by the government.

2. If the enterprise is affected by the epidemic, which leads to difficulties in production and operation, it may stabilize the work position through consultation with employees, such as adjusting salary, rotating rotation, shortening working hours, etc., and try not to reduce or reduce the number of employees. Qualified enterprises can enjoy post-stabilization subsidies as required. If an enterprise suspends production and suspends production within a salary payment cycle, the enterprise shall pay the employee's salary in accordance with the standards stipulated in the labor contract. If the employee provides normal labor for more than one wage payment period, the wage paid by the enterprise to the employee shall not be lower than the local minimum wage standard. If the employees do not provide normal labor, the enterprise shall pay living expenses, and the living expenses standards shall be implemented in accordance with the regulations stipulated by the provinces, autonomous regions, and municipalities directly under the Central Government.

3. If the parties cannot apply for arbitration of labor and personnel disputes during the statutory limitation period due to the epidemic situation, the limitation period shall be suspended. From the date when the cause of suspension of limitation is eliminated, the arbitration limitation period continues to be calculated. If it is difficult for the labor and personnel dispute arbitration institution to try the case within the statutory time limit due to the epidemic situation, the trial period may be postponed accordingly.

4. The local human resources and social security departments shall strengthen the guidance and service of labor employment for enterprises affected by the epidemic situation, increase the labor security supervision and law enforcement, and effectively protect the legitimate rights and interests of employees.

Office of the Ministry of Human Resources and Social Security

January 24, 2020