On 7 February 2020, the Ministry of Human Resources and Social Security jointly with three other national organizations of the PRC issued an “opinion with regards to doing a good job in stabilizing labor relations and supporting companies to resume their operations during the prevention and control of the novel coronary virus pneumonia epidemic”.
The highlights are as follows:
I. Paying close attention to the new challenges brought about by the outbreak to labor relations
Companies and employees should be guided in sharing the responsibility in overcoming current difficulties, and to ensure overall harmony and stability of labor relations.
II. Flexibility while handling labor issues
* Companies are encouraged to negotiate with employees to resolve employment issues before resuming work. If employees cannot resume work on time or companies cannot start production on time due to the outbreak, companies may try to arrange for employees to work from home by telephone, internet and other flexible ways to meet their job obligations. Companies who are unable to do so are recommended to negotiate with employees to use their paid annual leave or other welfare leave available as a first option.
We should help companies to minimize the losses caused by the impact of the epidemic on the basis of taking into account the legitimate rights and interests of both companies and employees.
* Encourage flexible working hours. Companies are encouraged to negotiate with employees to enable flexible working hours by working at different time periods or with flexible commuting schedules. For companies that need to work overtime to meet the epidemic prevention and control tasks assigned by the government, after negotiation with trade unions and employees and under the premise of ensuring the health and safety of their employees, companies may appropriately extend their working hours and shall not be subject to the restriction of extended working hours in accordance with the law.
* To guide and standardize the management of employment. A company shall not, during this period, terminate a labor contract with employees who are unable to provide regular work as a consequence of being affected by the relevant measures or return dispatched employees. For companies that meet the requirements to resume work, companies should be instructed to provide the necessary epidemic prevention protection and labor protection measures, and actively mobilize employees to return to work. For employees who do not wish to return to work, companies should advise employees to return to work on time. If employees refuse to return to work without justified reasons, companies shall deal with such behavior in accordance with the law.
III. Wage negotiation
* Support should be provided in negotiating wages during the period of absence. During the period of delayed resumption or non-return to work affected by the outbreak, for employees who have used up all kinds of leave, but who are still unable to provide regular work or other employees unable to provide regular work, the companies shall be instructed to pay wages in accordance with the standards stipulated in the labor contract within a period of a wage payment period, in accordance with the relevant regulations of the State on the payment of wages during the suspension and shutdown and via negotiation with employees. For the time beyond one wage payment cycle, living expenses shall be provided by companies in accordance with the relevant provisions.
*To support companies in negotiating wages with employees. Companies that have encountered difficulties in production and operation, are encouraged to negotiate with their employees by means of democratic procedures to adjust salaries, shifts or job rotation, shorten working hours and other means to stabilize employment. Those companies who are unable to pay wages for the time being, shall be guided to negotiate with trade unions or staff representatives to defer payment, in an effort to help companies to reduce the pressure on capital turnover.
* To protect the rights and interests of employees’ wages and their treatment. For employees who are unable to provide regular work due to quarantine, companies shall be instructed to pay their wages in accordance withnormalregular work labor; after the quarantine, wages shall be paid in accordance with relevant medical periods for those who still need to refrain from working due to their treatment. For employees unable to take leave due to epidemic prevention and control measures during the extended Spring Festival holidays, companies shall first try to arrange some form of “make-up leave”, and for those whom “make-up leave” cannot be arranged, overtime payments shall be made in accordance with the law.
IV. Other measures to reduce the burden on companies
* the cost of companies for employment stabilization shall be reasonable shared
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