A new corona virus outbreak has raced through Shanghai since March 2022. Due to Omicron’s highly contagious nature, the number of persons sick grew rapidly, prompting the government to order house quarantine. This compelled businesses with established, close-knit workforces to take steps such as allowing workers to work from home or suspending operations. Shanghai implemented a stringent home quarantine for all residents on April 1st.
Regulations Regarding Wages Throughout the Lockdown
Priority will be given to the use of various types of leave, such as paid yearly leave and enterprise self-imposed welfare leave, during the period of delayed return to work caused by the pandemic. Employees are also compensated according to the terms of the applicable leave. 2022) (SMHRASSB). This implies that if you are unable to work from home, you can use your paid leave days to collect your full pay during that time.
Employees who become New coronary pneumonia patients / carriers / suspected patients / their close contacts
Employers are paid on the basis of normal labor during the period of isolation by the firm. (2022, SMHRASSB)
According to the PRC Labor Contract Law, an employer cannot terminate an employment contract while an employee is unwell or receiving medical treatment for a disease or injury unrelated to work.
As a result, if an employee is sick with the coronavirus and is at home or in the hospital, they are lawfully having medical treatment and the company cannot terminate the employee’s job contract.
Employees who are able to work from home during the lockdown
Salary payments are made on time (SMHRASSB, 2022). Employees who are compelled to work from home due to the lockdown must be paid their full regular income, according to the law.
Employees who are unable to work from home during the lockdown
Priority will be given to the use of various types of leave, such as paid yearly leave and enterprise self-imposed welfare leave, during the period of delayed return to work caused by the pandemic. Employees are also compensated in accordance with the rules of the applicable leave. (2022, SMHRASSB)
Employees who are still unable to provide normal labor after exhausting all types of leave or who are otherwise unable to provide normal labor must be paid in accordance with the standards outlined in the employment contract within one payroll period; those who exceed one payroll period must be paid the cost of living in accordance with the relevant regulations. (MOHRSS a, 2020)
[Shanghai’s standard for calculating the cost of living: the city’s minimum wage (SMHRASSB, 2020)-RMB 2590.]
If you are unable to work from home during the lockdown, your company must pay you the Shanghai minimum wage (2590CNY).
Employees in businesses are experiencing work stoppages and production shutdowns.
When a corporation suspends operations during a wage payment cycle, salaries must be paid in compliance with the employment contract criteria.
If the suspension of activities lasts longer than a wage payment cycle, the company can pay its employees under a new agreement between the two parties.
Wages, however, must not be lower than the locally defined minimum wage norm.
Companies in a Lockdown state must defend their employees’ livelihoods, i.e. the local minimum wage. As a result, during a Lockdown, the employer can lower wages but cannot fail to pay them.
Simultaneously, government departments rule that employers are not permitted to terminate employment relationships with their employees during an epidemic, save in limited instances. If an employer terminates the employment connection, fails to pay wages, or requires regular work without paying wages as stipulated in the employment contract, the employee has the right to seek labor arbitration or lawsuit. (MOHRSS b, 2020)
- Ministry of Human Resources and Social Security of the People’s Republic of China a. 2020.
- Ministry of Human Resources and Social Security of the People’s Republic of China b. 2020.
- SHANGHAI MUNICIPAL HUMAN RECOURCES AND SOCIAL SECURITY BUREAU. 2022.SHANGHAI MUNICIPAL
- HUMAN RECOURCES AND SOCIAL SECURITY BUREAU. 2020.