On 24 January 2020, the Ministry of Human Resources and Social Security of the PRC announced its “Notice on the proper treatment of labor relations during the prevention and control of the pneumonia outbreak caused by the new coronavirus infection”.
Main content of the notice as follows:
1. For pneumonia patients, suspected patients, close contacts during their isolation treatments or during medical observation periods and for employees who are unable to fulfill their employment obligations as a result of the government’s quarantine measures or other emergency measures, affected employers shall pay employee’s remuneration for respective periods. Employers shall not, in accordance with Article 40 or Article 41 of the Labor Contract Law terminate respective labor contracts with said employees. Meanwhile, if the labor contract might expire during aforementioned periods, it shall be extended in line with the time of absence due to the medical period of the employee, the medical observation period or the period of isolation or the end of the emergency measures taken by the government.
2. If an enterprise encounters productional and operational difficulties caused by the epidemic, it may stabilize the operation by means of adjusting remuneration, rotation, shortening working hours, etc. by consensus with the employees, so as not to lay off or lay fewer people off. Eligible enterprises may enjoy a subsidy in accordance with the provisions. If an enterprise stops operation in one wage period, the enterprise shall pay the wages of its employees in accordance with the standards stipulated in the labor contract. If the employee provides regular work, the wage paid by the enterprise shall not be lower than the local minimum wage. If employees do not provide regular work, the enterprise shall pay the living expenses, and the living expenses standard shall be implemented in accordance with the methods prescribed by the provinces, autonomous regions and municipalities directly under the Central Government.
On 25 January 2020, the local authority in Guangdong announced its detailed notice for Guangdong province, except the provisions of above-mentioned notice. The new notice further provides:
For employees who have not returned to resume work in Guangdong in time due to the outbreak, after consensus with the employees, the enterprise may give priority to arranging paid annual leave for the employees. Among them, the cumulative employment of employees is up to 1 year but less than 10 years, the annual leave shall be 5 days; up to 10 years but less than 20 years, the annual leave shall be 10 days; up to 20 years of employment, the annual leave shall be 15 days. Employees receive the same salary during their paid annual leave as during regular working hours.
The notice also provides that if the enterprise fails to arrange the work of the employees, the living expenses of the employees shall be paid in accordance with not less than 80% of the local minimum wage standard, and the living expenses shall be paid until the enterprise resume operation or terminate the labor relations.
We believe local governments in other parts of China will also issue their notices shortly to announce measures if and when needed accordingly.
Useful link:
Ministry of Human Resources and Social Security of the People’s Republic of China
