FAQs Regarding Payment During Covid

Q1: The school is closed because of the Covid-19, I can only teach the students online.  The school said that they will only pay us half of normal salary, since we are working from home, is it correct?

A: No, it’s incorrect.  Online or offline, you are working, the employer has to pay you as usual.

Related provision in “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” promulgate on 7 February 2020:

《关于做好新型冠状病毒感染肺炎疫情防控期间稳定劳动关系支持企业复工复产的意见》中的相关规定：

II. Flexibility while handling labor issues

二、灵活处理疫情防控期间的劳动用工问题

...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… 

...鼓励协商解决复工前的用工问题。对因受疫情影响职工不能按期到岗或企业不能开工生产的，要指导企业主动与职工沟通，有条件的企业可安排职工通过电话、网络等灵活的工作方式在家上班完成工作任务…

Q2. My company is going to suspend business for two weeks during the recent outbreak in our city, the employer told us that we won’t get paid as we didn’t work at all, is it true?

A: No, it’s not true.  Company shall pay employees in accordance with the relevant provisions on wage payment during the period of suspension and shutdown. I.e., the company shall pay wages of employees in accordance with the standards stipulated in the labor contract during the period of suspension and shutdown within one wage payment cycle. In case of more than one wage payment cycle, the company shall pay living expenses amounting to not less than 80% of the local minimum wage. However, if a company negotiates with its employees to use such holidays as paid annual leave first, wages shall be paid in accordance with the provisions of the relevant leave.

Q3. What does the wage payment cycle mean?

A: The wage payment cycle refers to the number of days mutually agreed in the employment contract.

If the contract provides that salary will be paid monthly, then the wage payment cycle is one month, or say, 30 days.

A wage payment cycle for business suspension is calculated from the day of suspension of business till the last day of the corresponding number of days in one wage payment cycle, regardless of the specific pay date. For example, if the company pay salary monthly and now is suspending business from January 10, then the first wage payment cycle ends on February 9 and the second wage payment cycle start from February 10. The employer has to pay normal salary till February 9 and at least 80% of minimum local salary since February 10, if no job for the employees to do.

Q4. The employer said the half of the salary will be paid one month later, is it ok?

A：It’s the employer’s responsibility to pay salary in full amount and timely. Otherwise, the employees can ask for compensation.  However, given the current situation, it’s better to negotiate with the employer and find out the real reason for the late payment. Generally speaking, it’s possible for a factory to run out of cash because their clients are late to pay or place order, but it’s not true with a school, as school charge tuition before the commencement of each semester.

Related provision in Tentative Provisions on Payment of Wages

Article 7.   Wages must be paid on the date agreed upon by the employer and the employee. If such date falls upon a holiday or rest day, wages shall be paid in advance on the nearest working day. Wages must be paid at least once a month, and where a weekly, daily or hourly wage system is implemented, wages may be paid based on weeks, days or hours.

Article 12.   Where an employer ceases operation or ceases production in a wage payment period for reasons other than those due to the employees, the employer shall pay the wages of employees in accordance with the standards stipulated in the labor contract. Where such situation continues for more than one wage payment period: if employees have worked as normal, the labor compensation paid to such employees must not be less than the local minimum wage standard; and if the employees have not worked as normal, the matter shall be handled in accordance with relevant State provisions.

《工资支付暂行规定》相关规定：

第七条   工资必须在用人单位与劳动者约定的日期支付。如遇节假日或休息日，则应提前在最近的工作日支付。工资至少每月支付一次，实行周、日、小时工资制的可按周、日、小时支付工资。

第十二条   非因劳动者原因造成单位停工、停产在一个工资支付周期内的，用人单位应按劳动合同规定的标准支付劳动者工资。超过一个工资支付周期的，若劳动者提供了正常劳动，则支付给劳动者的劳动报酬不得低于当地的最低工资标准；若劳动者没有提供正常劳动，应按国家有关规定办理。

Link for full text：

Tentative Provisions on Payment of Wages