1. During an employee's home quarantine period, is the employer required to pay wages? Can the employer terminate the labor contract?

Wages must be paid. Pursuant to the "Notice on Implementing Support and Safeguard Measures in Response to the Novel Coronavirus Pneumonia Epidemic," "for enterprise employees who are patients diagnosed with novel coronavirus pneumonia, suspected patients, or close contacts during their isolation treatment period or medical observation period, or who are unable to provide normal labor due to government-imposed isolation measures or other emergency measures, the employer shall pay wages and remuneration as if the employee were working normally, and shall not terminate the labor contract with the employee in accordance with Articles 40 and 41 of the Labor Contract Law. During this period, if the labor contract expires, it shall be extended until the expiration of the employee's medical treatment period, medical observation period, isolation period, or the conclusion of the emergency measures taken by the government."

The employer may not terminate the labor contract. According to Article 5 of the "Series of Q&A on the Application of Law in Cases Involving the COVID-19 Epidemic (No. 5)" issued by the Shanghai Higher People's Court: "For situations where employees are genuinely affected by the epidemic and unable to return to work in a timely manner, or where the employer fails to pay labor remuneration in full and on time, or fails to pay social insurance in accordance with the law, such cases shall be handled with caution. Disputes should be resolved as much as possible through settlement, mediation, and other means to stabilize labor relations, and it is not appropriate to readily rule in favor of terminating the labor contract."

2. During the epidemic, if an employer is unable to pay wages on time, how should this be handled?

For employers with the ability to pay, if wages cannot be paid temporarily due to objective reasons (e.g., financial personnel being placed under quarantine measures), it is recommended that the employer promptly explain the situation to employees and retain relevant written evidence. Once the conditions for payment are met, the employer shall pay wages to employees at the earliest opportunity.

For employers temporarily unable to pay wages, the employer may negotiate with the labor union or employee representatives and, upon reaching a consensus, defer payment.

3. Can an employer affected by the epidemic adjust employees' wages?

According to the provisions of the "Notice on Implementing Human Resources and Social Security Support and Safeguard Measures in Response to the Novel Coronavirus Pneumonia Epidemic" issued by the Shanghai Municipal Bureau of Human Resources and Social Security, "if an employer requires employees to postpone returning to work due to the impact of the epidemic, within one wage payment cycle, wages shall be paid to employees according to the standards stipulated in the labor contract; if the postponement exceeds one wage payment cycle, the wages paid shall not be lower than the city's minimum wage standard. If an employer experiences operational difficulties due to the impact of the epidemic, it may stabilize positions by adjusting compensation, implementing job rotation and shared leave, or shortening working hours through consultation with employees, and shall strive to avoid or minimize layoffs."

Therefore, an employer may not directly withhold or reduce wages but shall adjust compensation through consultation with employees.

4. When an employer suspends operations or experiences financial difficulties due to the impact of the epidemic, can it reduce employees' bonus or performance-based wage standards, or withhold year-end bonuses?

An enterprise may stipulate in the labor contract or internal rules and regulations the conditions and methods for the distribution of bonuses, performance-based wages, and year-end bonuses, i.e., it may provide or agree that the enterprise may reasonably decide to reduce or suspend such payments based on specific circumstances such as its operational performance and the employee's work performance. However, if such payments, though named as bonuses, performance-based wages, or year-end bonuses, are in substance a fixed component of wages, the enterprise may not unilaterally reduce or suspend them.

5. If an employee is unable to report to work due to epidemic prevention and control measures and does not have the conditions for working from home, can the enterprise arrange for the employee to take annual leave?

For employees who are unable to work from home and also unable to report to work, it is recommended that the enterprise make comprehensive arrangements for such employees to take annual leave and any welfare leave established by the enterprise. In addition, the enterprise may also negotiate with employees to arrange compensatory time off for overtime hours worked.

6. During the period of working from home, can the enterprise conduct attendance management for employees?

According to the "Opinions on Stabilizing Labor Relations and Supporting Enterprise Resumption of Work and Production During the Prevention and Control of the Novel Coronavirus Pneumonia Epidemic," "for employees who cannot report to work on time or enterprises that cannot commence production due to the impact of the epidemic, enterprises should be guided to proactively communicate with employees. Enterprises with the necessary conditions may arrange for employees to work from home and complete work tasks through flexible working methods such as telephone or online platforms."

Therefore, enterprises may conduct attendance management for employees through online methods (such as WeChat, DingTalk, email, etc.) and require employees to submit work results.

7. Due to the impact of the epidemic, the enterprise is unable to renew the labor contract with the employee in a timely manner as required by law. How should this be handled?

According to the "Guidelines on the Conclusion of Electronic Labor Contracts," "electronic labor contracts concluded in accordance with the law have legal effect, and the employer and the employee shall fully perform their respective obligations in accordance with the terms of the electronic labor contract." Therefore, enterprises with the necessary conditions may complete the renewal of labor contracts through electronic signing platforms.

For enterprises that do not have the conditions for electronic signing, they may negotiate with employees through written means such as WeChat or email to confirm a reasonable extension period for signing the labor contract. After the impact of the epidemic has been eliminated, the enterprise may sign a paper-based labor contract with the employee retroactively.

8. If an employee contracts COVID-19 while participating in anti-epidemic volunteer activities, does this constitute a work-related injury?

According to Article 15 of the "Shanghai Municipal Implementation Measures for Work-Related Injury Insurance," "an employee shall be deemed to have suffered a work-related injury under any of the following circumstances: ... (2) being injured in activities such as emergency rescue and disaster relief, or in other activities that safeguard national interests or the public interest."

Therefore, if an employee contracts COVID-19 while participating in anti-epidemic volunteer activities, it shall be treated as a work-related injury. However, it is recommended that the employee retain relevant supporting documents for the volunteer services (such as statements issued by relevant authorities, sub-district offices, or neighborhood committees).

9. If an employee is diagnosed as a COVID-19 patient, is the employer required to pay the relevant medical expenses?

If the employer has paid social insurance for the diagnosed employee, it is not required to pay the relevant medical expenses.

If the employer has not properly paid social insurance for the employee, the employer shall bear the portion that would otherwise have been paid by the medical insurance fund.