Labor Q&A During the Epidemic Period
1. Does the enterprise need to pay wages when employees are under home isolation? Can the enterprise terminate the labor contract?
Wages must be paid. According to the "Notice on Implementing Support and Guarantee Measures to Address the COVID-19 Epidemic", "For employees who are COVID-19 patients, suspected cases, or close contacts and are unable to provide normal labor due to isolation treatment, medical observation, or government-imposed isolation measures or other emergency measures, enterprises shall pay wages as normal attendance and shall not terminate labor contracts with employees pursuant to Articles 40 and 41 of the Labor Contract Law. During this period, if the labor contract expires, it shall be extended respectively until the end of the employee's medical treatment period, medical observation period, isolation period, or the end of emergency measures taken by the government."
The enterprise cannot terminate the labor contract. According to Article 5 of the "Series of Q&A on Legal Application Issues in COVID-19 Epidemic-Related Cases" by Shanghai High People's Court: "In situations where employees are genuinely unable to return to work due to the epidemic, enterprises fail to pay labor remuneration in full and on time, or fail to pay social insurance premiums as required, etc., such matters should be handled cautiously, and disputes should be resolved through reconciliation and mediation as much as possible to stabilize labor relations. It is not appropriate to easily rule termination of labor contracts."
2. How should enterprises handle delayed wage payments during the epidemic period?
For enterprises with payment capability, if wages cannot be paid temporarily due to objective reasons (such as financial personnel being isolated), it is recommended that enterprises promptly explain the situation to employees and retain relevant written evidence. Once conditions for payment are met, enterprises shall pay wages to employees at the earliest opportunity.
For enterprises temporarily unable to pay wages, enterprises may postpone wage payment after consultation and reaching consensus with the labor union or employee representatives.
3. Can enterprises adjust employee salaries due to the epidemic's impact?
According to the "Notice on Implementing Human Resources and Social Security Support and Guarantee Measures to Address the COVID-19 Epidemic" by Shanghai Municipal Human Resources and Social Security Bureau: "If enterprises require employees to postpone returning to work due to the epidemic's impact, wages shall be paid according to the standards specified in the labor contract during one wage payment cycle; if it exceeds one wage payment cycle, the wages paid shall not be lower than Shanghai's minimum wage standard. If enterprises experience operational difficulties due to the epidemic's impact, they may stabilize work positions by adjusting compensation, implementing rotation, reducing working hours, etc., through consultation and consensus with employees, and strive to minimize layoffs or avoid layoffs."
Therefore, enterprises cannot directly withhold or reduce wages but should adjust compensation through consultation with employees.
4. Can enterprises reduce employee bonus and performance salary standards or suspend year-end bonuses when production is suspended or operational difficulties arise due to the epidemic's impact?
Enterprises may agree in labor contracts or company rules on the conditions and methods for bonuses, performance salaries, and year-end bonuses, specifying that enterprises can reasonably decide whether to reduce or suspend payment based on specific circumstances such as operational efficiency and employee work performance. However, if bonuses, performance salaries, or year-end bonuses are actually fixed components of wages, they shall not be unilaterally reduced or suspended.
5. Can enterprises arrange employees to take annual leave when employees cannot work on-site due to epidemic prevention and control and do not have conditions for home-based work?
For employees who cannot work from home and cannot work on-site, it is recommended that enterprises arrange for such employees to take annual leave and company-established welfare leave. Additionally, enterprises may also arrange compensatory time off for overtime work through consultation with employees.
6. Can enterprises monitor employee attendance during home-based work?
According to the "Opinions on Stabilizing Labor Relations and Supporting Enterprises to Resume Production During the COVID-19 Epidemic Prevention and Control Period": "For situations where employees cannot return to work on time or enterprises cannot start production due to the epidemic's impact, enterprises should proactively communicate with employees. Enterprises with conditions may arrange employees to work from home through flexible work methods such as telephone and internet to complete work tasks."
Therefore, enterprises may monitor employee attendance and require employees to submit work results through online methods (such as WeChat, DingTalk, email, etc.).
7. How should enterprises handle situations where they cannot timely renew labor contracts with employees due to the epidemic's impact?
According to the "Guidelines for the Conclusion of Electronic Labor Contracts": "Electronic labor contracts concluded in accordance with the law have legal effect, and employers and employees shall fully perform their respective obligations according to the agreements in the electronic labor contracts." Therefore, enterprises with conditions may complete labor contract renewals through electronic signature platforms.
For enterprises without conditions for electronic signatures, they may confirm a reasonable extension period for signing labor contracts with employees through written methods such as WeChat or email. After the epidemic's impact subsides, enterprises may sign supplementary written paper labor contracts with employees.
8. If an employee is infected with COVID-19 while participating in anti-epidemic volunteer activities, does this constitute a work-related injury?
According to Article 15 of the "Shanghai Work Injury Insurance Implementation Measures": "The following situations involving employees shall be deemed as work-related injuries: ... (2) Injuries sustained in activities to maintain national interests or public interests such as emergency rescue and disaster relief."
Therefore, if an employee is infected with COVID-19 while participating in anti-epidemic volunteer activities, it should be handled as a work-related injury. However, it is recommended that employees retain relevant proof documents for volunteer services (such as situation explanations issued by relevant departments, subdistricts, or neighborhood committees).
9. If an employee is diagnosed as a COVID-19 patient, does the enterprise need to pay related medical expenses?
If the enterprise has paid social insurance for the diagnosed employee, there is no need to pay related medical expenses.
If the enterprise has not paid social insurance for employees as required, the enterprise shall bear the portion that should have been paid by the medical insurance fund.
