Coronavirus cases have soared as the testing resources at the in-charge medical facilities have been gradually been put in place. As of 10am on February 5th 2020, China has seen 24363 confirmed cases and 23260 suspected cases. In an effort to assist companies in better coping with the raging epidemic, DP has collected and integrated some of the key regulations published mainly for the Yangtze River Delta and Southwest China, the major points have been extracted and translated and the source links will take you to the original official notice.
1.Notification regarding Postponing Resumption of Work and School Opening from the People’s Government of Shanghai (January 27, 2020)
All kinds of enterprises within should not return operation earlier than 24:00 on Feb. 9 except for those involved in matters necessary for the operation of city, epidemic prevention & control, people’s livelihood and other important affairs for national economy and people’s livelihood. The legitimate rights and interests of employees should be guaranteed in accordance with the law.
Company must keep a tight record of health supervision as well lay down necessary precautionary measures such as temp-measuring equipment, masks, sterilizing appliances, etc.
2.Municipal Bureau of human resources and social security answers the questions related to the delay of the resumption of work (January 29, 2020)
1.The postponed time period should be treated the same as legal holidays and during the rest period employees shall be paid according to the labor agreement, employees who must work shall be given compensatory leave or pay overtime wage（twice the salary）. At the same time, working at home according to the requirements shall be regarded as overtime work, and the enterprise shall give compensatory leave or pay overtime wage.
2.It is necessary to establish a report system for review of returning to work in advance. For those enterprises that need to return to work before February 10 due to special reasons, they need to provide relevant explanatory materials (including information on the flow of foreign employees), response to epidemic plans and measures, as well as the cross examination to ensure that there is no epidemic situation, etc., and report to the township (street) epidemic prevention and control headquarters, and then return to work after approval, and at the same time report to the regional epidemic prevention and control headquarters office for filing. In case of any non-compliance or confirmed cases, it will be ordered to stop production immediately and the enterprise will be held responsible according to the regulations.
3.Return unemployment insurance premium, extension of social security payment, the city launched four measures to reduce the burden of enterprises. (February 3, 2020)
1.The policy of returning unemployment insurance fee to stabilize employment
In 2020, the city will continue to return 50% of the total unemployment insurance fee actually paid in the previous year to those employers that do not reduce the number of staff or meet the conditions.
- Postpone the adjustment of social security payment basis. From this year, the starting and ending date of the payment period of social insurance for employees in Shanghai (including medical insurance) shall be adjusted from July 1st of the current year to June 30th of the next year, which shall be postponed for three months (the payment period of 2019 social insurance payment shall be postponed to July 1st, 2020).
- The insured units of social insurance, in Shanghai who fail to handle the insurance registration on time due to the coronavirus shall be allowed to make up at a later date. If the insured unit fails to pay the social insurance fee within the time limit, after reporting to the municipal social security agency, it will not be charged the late payment fine, and will not affect the personal rights and interests records of the insured employees. The relevant supplementary payment procedures may be completed within 3 months after the situation is lifted.
4.For all kinds of enterprises in Shanghai affected by the epidemic, those who organize employees (including dispatched workers working in the enterprise) to participate in all kinds of online vocational training during the shutdown period included in the scope of the enterprise employee training shall be subsidized by the local education additional special fund in each district enjoying a 95% subsidy according to the actual training cost. Platform enterprises (e-commerce enterprises) and new business enterprises may refer to this implementation.
- Notification regarding Positive Response to Epidemic of Pneumonia Infected by Novel Coronavirus for Handling the Work of Labor Relationship from Zhejiang Province Human Resources and Social Security Department (January 26, 2020)
1) For the employees who cannot work due to isolation or medical observation as patients, suspected patients or those in close contact with the infection; or due to the government’s isolation or emergency measures, the company shall treat them as working and pay the salary as per regular working time.
2) Where the company’s shutdown or production halt lasts within a cycle of payment of remuneration due to the epidemic, the company shall pay salaries per the standard as stipulated in the labor contract. Where such shutdown or production halt lasts more than a cycle of payment of remuneration and the employees provide regular labor service, the company shall pay salaries as per a newly-reached agreement with the employee which shall be no less than the local minimum wage standard; if the employees do not provide regular labor service, the company shall pay no less than 80% of the minimum wage standard as employees’ living expenses until the company resumes the work or the labor relationship is terminated.
3) For the employees who cannot come back to work in time due to the epidemic, after negotiation, the company can arrange the employees to firstly take annual leave.
- Notification regarding Postponing Resumption of Work and School Opening from the People’s Government of Zhejiang Province Office (January 27, 2020)
1) Common companies in Zhejiang shall not resume work before February 9 unless they are related to national welfare and people’s livelihood, such as public transportation, medical, etc.
2) When employees need to come back to Zhejiang, the company shall report relevant information timely; for employees returning from a severely afflicted area, company shall conduct strict medical observation/quarantine measures.
- Regulations regarding Company’s Resumption of Work and Epidemic Control with 17 Articles (February 3, 2020)
1) Without the approval of local government, the company is not allowed to resume work prior to 24:00, February 9.
2) The company which resumes work before the termination of first level response to the epidemic shall establish a group for epidemic control led by one main responsible person and take measures for epidemic control; regulate the plan of epidemic control and work resumption, including leadership system, liability assignment, regulation of checks, daily control, logistics support, emergency response and so on. Before the resumption, the control plan, resumption plan, commitment letter and other relevant materials shall be submitted to the local competent government for record-filing and reported to the local group of epidemic control.
3) The company shall initiate mechanisms of self-control, establish the supervision and management group for epidemic control with the responsible person as group leader, and supervise and examine the work of epidemic control every day. Relevant conditions shall also be reported to the local government every day.
4) The company must establish a health supervision system to put the physical conditions of returning employees on close watch, employees must fill in the Health Examination Form prior to his/her return.
- Circular from Group of Epidemic Control of Pneumonia Infected by Novel Coronavirus (No.3) (January 27, 2020)
All the employees who are from Hubei shall be firstly isolated for 14 days by the company when they come to Wenzhou.
- 25 Emergency Measures Issued by Wenzhou Government(January 31, 2020)
1) Common companies in Wenzhou shall not resume work before February 17 unless they are related to national welfare and people’s livelihood.
2) Central air-conditioning shall be strictly forbidden.
1.Notification regarding Postponing Resumption of Work from the People’s Government of Jiangsu Province Office (January 28, 2020)
General enterprises in Jiangsu province shall resume work no earlier than 24:00 on February 9, except those related to guaranteeing the operation of public utilities, the prevention and control of epidemics, the needs of people’s livelihood, and other related enterprises that are involved in important matters related to the national economy and people’s livelihood.
2.Re-prompting about Cooperating with the Prevention and Control of Novel Coronavirus Infection and Pneumonia and Optimizing Tax Payment Services (January 31, 2020)
- Jiangsu’s tax declaration period for February has been extended to February 24, 2020.
- Provincial Taxation Service Department will provide services from February 3, 2020.
3.Notification regarding Postponing Resumption of Work from the Office of Nanjing People’s Government (January 28, 2020)
- The time for all enterprises in Nanjing to resume work shall not be earlier than 24:00 on February 9, 2020.
- Enterprises which need to resume work and resume operations in advance must give written instructions to the epidemic prevention and control headquarters in the area where they operate, and resume operations after approval.
- The company shall warn employees against returning to Nanjing before receiving formal notice of resumption of work.
4.Measures to Support the Development of Service Enterprises during Epidemic Prevention and Control from Nanjing Human Resource and Social Security Bureau (February 3, 2020)
- For patients who are still required to stop working for treatment after the end of the quarantine period, the enterprise can pay sick leave that is not less than 80% of the minimum salary standard according to the relevant provisions of the medical period of the employee’s illness.
- For employees who cannot take annual leave due to epidemic prevention and control during the extended holiday period from January 31 to February 2, 2020, or need to end the vacation and return to work early, the employer shall arrange compensatory leave in accordance with regulations; if it cannot arrange compensatory leave, it shall be paid on a daily basis, which is not less than 200% of his/ her daily salary.
- If the enterprise resumes work no later than 24:00 on February 9, the salary payment during the delayed resumption period (February 3, 2020 to the day before the resumption of work) shall be implemented with reference to relevant provisions on salary payment during the production suspension. That is, if the enterprise is in a salary payment period, it shall pay according to the standards stipulated in the labor contract. For more than one salary payment period, if the employee provides normal labor, the salary paid by the employer to the employee shall not be lower than the local minimum salary standard. If the employee does not provide normal labor, the employer shall pay living expenses, which shall be at least 80% of the current minimum salary.
- Where an enterprise requires employees to provide normal labor through telecommuting or other means, wages shall be paid in accordance with the law.
5.Notification regarding Suzhou on Implementing Subject Responsibility, Delaying Resumption of Enterprises, Strengthening Epidemic Prevention (January 28, 2020)
- All types of enterprises shall not resume work before 24:00 on February 9.
- Enterprises that have not stopped production during the Spring Festival can maintain the status quo and continue production with approval of the local government.
- Employees returning from severely stricken epidemic areas must strictly implement the requirements of 14 days of home isolation or isolation in corporate dormitories.
6.”Benefits” to Support Small and Medium Enterprises Suzhou People’s Government (February 2, 2020)
- All banking institutions ensure that the credit balance of small and medium enterprises in 2020 is not less than the balance of the same period in 2019.
- For SMEs in key areas in financial difficulties, all banking institutions are encouraged to lower more than 10% from the original loan interest rate to ensure that the financing costs of SMEs in 2020 are not higher than the financing costs of the same period in 2019.
- For insured companies that do not lay off staff or reduce layoffs, 50% of the actual unemployment insurance premium they paid last year can be returned.
- SMEs affected by the epidemic that are unable to pay social insurance in time, after approval in accordance with regulations, can defer pension insurance, unemployment insurance and work injury insurance premiums for a maximum of 6 months.
- For SMEs that rent state-owned assets for operations, rents are exempted for one month and halved for a further two months.
- Notice of the General Office of Chongqing Municipal People’s Government on extending the Spring Festival holiday in 2020 (January 27, 2020)
1) Extend the 2020 Spring Festival holiday to February 2 (the ninth day of the first lunar month, Sunday), and start work normally from February 3 (Monday).
2) Employees who are unable to take leave due to epidemic prevention and control shall be arranged to take compensatory leave in accordance with the provisions of the Labor Law of the People’s Republic of China, and the wages and remuneration of the unused leave shall be guaranteed and implemented in accordance with the relevant policies.
- Notice on the Resumption of Work and Production of Enterprises in Chongqing (January 28, 2020)
The time for all kinds of enterprises to resume work and production in the administrative region of this Municipality shall not be earlier than 24:00 on February 9, 2020.
- Operation Manual for Prevention and Control of the Epidemic When Returning to Work after Holidays In Chongqing
1) Comprehensively check the health status and activity track of the unit’s personnel, accurately set up and record book-keeping.
2) Those who are still in the key epidemic areas shall abide by the epidemic prevention and control measures taken by the local government and shall not leave without permission in violation of the regulations.
3) In case of returning to Chongqing from other provinces, regions or cities other than Chongqing, or should there be confirmed cases within the residential area, or there are other cases in which individuals may be infected by the coronavirus, the personnel should stay at home or in medical observation isolation for 14 days as required.
4) The staff of the unit shall not take public transportation when going to work. If it is really necessary to take public transport, it is necessary to wear a mask throughout the journey and try to avoid touching the articles on the vehicle by hand on route.
5) The company should widely implement an online office, and advocate to work through online platforms, network clients, mobile apps and other ways.
- Chongqing Public Security Exit and Entry Window extended to reopen on February 10 (February 4, 2020)
According to the relevant requirements of the epidemic prevention and control work of each district and county, the public security entry-exit window of the entire city has suspended reception operation and postponed reopening to February 10. During this period, the Exit and Entry Department will continue to provide 24-hour emergency services for applicants with emergency reasons.
- Notice of the Headquarters for the Prevention and Control of Pneumonia Caused by Coronavirus in Chengdu (February 1, 2020)
1) All government offices, enterprises and institutions in the city should implement a flexible work system such as staggered work hours and off duty on the premise of ensuring the need and normal operation of coronavirus prevention and control work.
2) Under the premise of strict implementation of coronavirus prevention and control measures, the work can be resumed orderly after being reported to the competent industry departments of the city, district (city) and county for approval according to their own conditions.
3) Until February 9, the measure of vehicle tail number restriction will be temporarily suspended.
6.Twenty policy measures of the General Office of Chongqing Municipal People’s Government to support small and medium-sized enterprises in coping with pneumonia caused by new coronavirus infection (February 4, 2020)
1) Small and medium-sized enterprises that are affected by the epidemic situation and have real difficulties in paying the real estate tax and urban land use tax may apply to the competent tax authorities, and after approval, they shall be granted no less than 2 months of tax deduction or exemption.
2) For small and medium-sized enterprises that are affected by the epidemic situation and are unable to file tax returns on time, they shall be allowed to postpone their tax declarations in accordance with the law; if they meet the conditions for postponement of tax payments, they shall be allowed to postpone their tax payments in accordance with the law, and the maximum period shall not exceed 3 months.
3) For the insured enterprises that are affected by the epidemic situation and faced with temporary difficulties in production and operation and are expected to recover with no or less layoffs, 50% of the social insurance premium shall be returned to the enterprises and their employees who enjoy the return standard of 3 months after being approved according to the regulations.
4) During the epidemic period, the rent of small and medium-sized micro enterprises renting state-owned assets for business use will be reduced or exempted for one to three months.
Such policies and measures shall be implemented from the date of promulgation to June 30, 2020. The relevant supporting policies issued by the State shall prevail.
From the above extracts of the major regulations from various government authorities, it’s clear the emphasis has been placed at epidemic control and burden alleviation for business owners. Hence we believe companies are at a crucial moment to lay down the foundations for effectively getting through this situation. On the one hand, companies should fully establish coronavirus control systems and measures especially in compliance with local official instructions; on the other hand, given the inevitable losses caused by this outbreak, companies shall also keep a close watch on the relief policies released by the local authorities and apply appropriately in a timely manner.
Due to the varying degrees of this epidemic across different parts of China, tailored policies will play the main role at this stage, and even more so in the coming days. DP has been closely following the situation and relevant countermeasures issued by government and is ready to assist in tiding over these difficult times. For more information, please reach us via firstname.lastname@example.org.
The present document is only a courtesy translation made by D’Andrea & Partners based on the literal meaning of the original notices. This document does not represent a formal legal opinion. Any transfer of any total or partial reproduction is strictly forbidden unless under the previous authorization of D’Andrea & Partners.
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