CMS, China | Coronavirus Outbreak: Follow-up updated policies on the treatment of employees




CMS, China

Coronavirus Outbreak: Follow-up updated policies on the treatment of employees

Dear Sir or Madam,

On 29 and 31 January 2020 we already issued two newsletters on the topics Coronavirus Outbreak: What companies shall do with employees’ holidays? and Coronavirus Outbreak: What should companies do when employees are back to work?. With the ongoing development of the situation, some policies which we reported on in the above two newsletters were already updated. Please find the follow-up newsletter.

Kind regards,
CMS, China

On 29 and 31 January 2020 we already issued two newsletters on the topics Coronavirus Outbreak: What companies shall do with employees’ holidays? and Coronavirus Outbreak: What should companies do when employees are back to work?. With the ongoing development of the situation, some policies which we reported on in the above two newsletters were already updated. Please find below the major updates.

Until 3 February 2020, the number of provincial governments which require companies to remain closed for a further period after the expiration of the public holidays for the Chinese New Year due to the coronavirus has increased to 25. Among them, in most locations including but not limited to Beijing, companies are required to resume operation not earlier than 10 February 2020.
   
Different from Shanghai, many locations such as Beijing define the period of stop of work from 3 until 7 February 2020 (excluding the weekend of 8 and 9 February) as working days. Therefore, for example in Beijing, companies are not strictly prohibited from starting work during such period and can arrange employees to work at different time periods at the company just in order to avoid staff gathering. Also, during such period for example companies in Beijing can arrange employees to work from home by means of telephone, Internet, etc. No overtime payments need to be paid to the employees working during such period.
   
As a result, due to the different nature of the period of stop of work as defined by different local government, i.e., either rest days or working days the employees at different locations during such period will enjoy different salary benefits. For example, if a company asks the employee to work, in Shanghai, no matter whether from home or from the company, the company should pay overtime payments or provide compensatory leave, while in Beijing, overtime work benefits do not need to be provided. Therefore, companies may wish to check the applicable local policies when paying salaries to the employees for such period.
   
As required by the PRC Ministry of Human Resources and Social Security, employees suffering from the coronavirus, or being suspected patients or close contacts and employees who are not able to be back to work because of the isolation measures or other emergency measures taken by the government shall be paid salaries during the medical treatment period, medical observation period or lock-out period due to the control and prevention of the coronavirus. But the salary standards at different locations are different. On 31 January 2020, the Beijing local government adjusted its policies. Please find below an update of the relevant information for the following five major cities and provinces including Beijing.

  Beijing Guangdong/
Zhejiang
Shanghai/
Jiangsu
Coronavirus
Patients
During the quarantined medical treatment period Normal salary Normal salary Normal salary
During the normal medical treatment period Sick leave salary Sick leave salary Sick leave salary
Suspected Patients/Close Contacts during the quarantined or medical observation period Normal salary Normal salary Normal salary
Locked out Employees (assuming not working from home) Normal Salary; but the company can arrange the employee to take annual leave first, and then if the lock-out period is long, the company may consult with the employee about suspension of work and only pay the living allowance of 70% of the minimum wage.  (employees on business trip shall be excluded) Normal salary; the company may consult with the employee about taking annual leave during this period. Normal salary; whether the company can arrange the employee to take annual leave during this period is not expressly provided. However, we consider this should be possible.

In case you have any questions or need further information, please contact the author:

CMS Jeanette Yu
Partner
Head of Employment & Pension Practice Area Group
CMS, China


T +86 21 6289 6363
E jeanette.yu@cmslegal.cn
 


 


This information is provided for general information purposes only and does not constitute legal or professional advice. Copyright by CMS, China.

CMS, China
“CMS, China” should be understood to mean the representative offices in Mainland China of CMS Cameron McKenna Nabarro Olswang LLP, CMS Francis Lefebvre Avocats and CMS Hasche Sigle, working together. CMS, China is a member of CMS Legal Services EEIG, a European Economic Interest Grouping that coordinates an organisation of independent member firms. CMS Legal Services EEIG provides no client services. Such services are solely provided by the member firms in their respective jurisdictions.

cms.law   Disclaimer   Privacy Statement

Shanghai Office Beijing Office

3108 Plaza 66, Tower 2
1266 Nanjing Road West
Shanghai 200040, China

 

 

Room 1909, China Youth Plaza,
No. 19 Dongsanhuan North Road,
Chaoyang District
Beijing 100026, China