Q&A on Labour Relations and Wages Treatment during the COVID-19 Outbreak in China -- China Business -- kaizen
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Q&A on Labour Relations and Wages Treatment during the COVID-19 Outbreak in China

China’s central government and local governments have announced a series of policies on labour relations and wages treatment during the COVID-19 outbreak. Kaizen hereby summarize the relevant policies for your easy reference.

1.
Q: How to calculate the wages for the extended Spring Festival holiday of 2020?
A: For the extended Spring Festival holiday (January 31, February 1 and February 2), the employer shall pay 200% of the employee’s daily or hourly wages if the employee returned to work as arranged by the employer and no arrangement for compensatory leave for rest.

2. Q: Is it allowed to offset the extended 3-day holidays with paid annual leave?
A: It is not allowed. The employer shall arrange for compensatory leave for rest in accordance with the Labour Law of the PRC.

3. Q: How about the wages treatment during the production or operation suspension period due to the COVID-19 outbreak?
A: According to the Notice issued by Ministry of Human Resources and Social Security of the PRC, where an enterprise suspends production or operation for a period less than a wage payment term, the payment to the employee shall be made in accordance with their employment contract. Where the suspension exceeds a wage payment term and the employee has provided normal work, the payment to the employee shall be no less than the local minimum wage standard. Where an employee does not provide normal work, the enterprise shall pay living expenses to the employee. The standard of living expenses shall be subject to the provisions set by the local provinces, autonomous regions and municipalities directly und the central government.

4. Q: How to deal with the labour relations during the COVID-19 outbreak?
A: According to the Notice issued by Ministry of Human Resources and Social Security of the PRC, for employees who are unable to work due to their confirmed or suspected infection or were in close contact with the infected patients, the employer shall not terminate the employment contract in accordance with Article 40 and Article 41 of the Employment Contract Law of the PRC. In case the employment contract expires during these periods, it shall be extended till the end of medical treatment period, medical observation period, isolation period or any emergency measures taken by the government.

5. Q: How to calculate the wages for the patient, suspected patient, person in close contact during the isolation period?
A: For employees who are unable to perform normal work due to the isolation measures for their confirmed or suspected infection or were in close contact with the infected patients, the employer shall pay full wages as normal during the isolation period. If the employees still need medical treatment after the end of isolation, the employer may pay those employees the sick leave wages during the medical treatment period.

6. Q: If the employees refuse to return to work upon receipt of the notice of returning to work in advance, can they be treated as absenteeism?
A: It is not allowed except for those employees who work for enterprises playing key roles in epidemic prevention and control (e.g. production and sales of medical devices, medicines, protection products, and etc.).

7. Q: How to deal with the employee who fails to return to work due to regional epidemic prevention and control measures?
A: Except for those confirm patients, suspected patients or persons in close contact with the infected patients, the employer may arrange the employee to work at home or arrange paid annual leave in first priority after negotiation and reach an agreement with the employee who fails to return to work due to regional epidemics prevention and control measures.

8. Q: Is it possible for the employer to cancel the offer letter on the ground of epidemic when it has already been sent out?
A: It is not allowed. The issuance of an offer letter is a unilateral legal act and shall be binding upon the employer after issuance. Unilateral cancellation on the ground of the epidemic may constitute a fault in contracting, the employer shall undertake corresponding legal responsibilities. The employer is recommended to negotiate with the candidate to find a solution.

9. Q: Is it possible for the employer to negotiate with the employee to adjust wages due to the epidemic?
A: Yes. An enterprise with difficulties in production and operation due to the epidemic may negotiate with its employees to adjust wages.

10. Q: How to calculate the wages during the period from February 3 to February 9 in Shanghai?
A: Shanghai Human Resources and Social Security Bureau has clearly replied that the employer shall pay full wages as normal to its employees during the period from February 3 to February 9 if no work is provided by the employees. If the employees provide work (including work at home) during this period, it shall be considered as overtime work on non-business days and shall arrange compensatory leave for rest or pay overtime wages at the rate of 200%.

11. Q: How to calculate the wages during the period from February 3 to February 9 in Guangdong Province?
A: According to Human Resources and Social Security Department of Guangdong Province, the employer shall pay full wages as normal to its employees during the period from February 3 to February 9 if no work is provided by the employees. If the employees of specific enterprises are arranged to work during the period from February 3 to February 7, the employer shall pay full wages as normal to the employees. If the employer arranges its employees to work on February 8 and February 9 and there is no arrangement for compensatory leave for rest, it shall pay 200% of the employee’s daily or hourly wages.

12. Q: How to calculate the wages during the COVID-19 outbreak in Beijing?
A:  According to the Notice issued by Beijing Human Resources and Social Security Bureau, the employees who work at home as required by the employer during the period of epidemic prevention shall be paid full wages.

13. Q: If the employee is infected with COVID-19 on the way to or back from work, can it be treated as a work-related injury?
A:  It is hard to identify as a work-related injury since the Regulation on Work-related Injury Insurance of the PRC does not stipulate similar cases.


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