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Notice to the Latest Guide of Business Recovery in Shanghai

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During the epidemic, many companies have been greatly affected, now it is far from recovery. After the policy of "Exempted", "Reduced", and "Postpone" on Social Insurance and Housing Fund was issued, China also publishes an enforcement on supporting the safe and orderly resumption of labor and coordination of labor relations during the evacuation of the new coronavirus epidemic. What are the latest policies for resuming work in Shanghai?

Q: The domestic epidemic situation has now been basically controlled, what are the procedures for the recovery of business?
A: According to the latest version 4.0 of the Shanghai Enterprise Recovery Guide, “Notice on Adjustment of the Records in Work and Production Resumption of Enterprises in Shanghai”, most companies in common industries could resume work directly without filing records.

Q: Can our company resume work directly?
A: At present, the business activities that need to be recorded to confirm the resumption of work include theatre and bookstore performances, movie cinema, chess and card room business activities, indoor swimming pools, and enclosed stadiums that use underground space. The business activities that need to wait for the relevant state authorities to report the recovery of work include the cross-provincial (city, district) and exit and entry team travel business, "ticket + hotel" travel business, and offline education and training activities operated by various tourism companies. Other industries can resume work directly.

Q: Due to the impact of capital turnover, enterprises cannot pay employee’s wages on time. How to resolve it?
A: According to the regulation of notice on the “Shanghai Enterprise Wage Payment Measurement” (Shanghai Human Recourses Comprehensive Issued [2016] No. 29), if the enterprise does have difficulties in production and operation, affects capital turnover, and is unable to pay wages on time, the labour delegates can agree to postpone workers' wages within one month, and all workers should be notified the postponed time of payment.

Q: Since our company is still in the shutdown stage and it still be classified as the enclosed space operation. How should the salary be paid to employees?
A: When an enterprise suspends its production within a payment period, it shall pay the wages of the workers as agreed. If the wage payment period exceeds one said period, the enterprise may pay wages base on the new agreement between the two parties based on the labour provided by the employees, but it shall not be lower than the minimum wage which is regulated by this municipal.

Q: What are the minimum wage standards in Shanghai?
A: According to “the Shanghai Municipal Human Resources and Social Security Bureau's Notice on Adjustment of the Minimum Wage Standard in this city” (Shanghai Human Social Regulation [2019] No. 5), this city would adjust the minimum wage standard to RMB 2,480.00 from April 1, 2019.And the minimum wage should not include the following components:
  1. Wages for extended working hours.
  2. Midnight shift allowance, summer high-temperature allowance, and toxic and harmful job position allowances in special working environments.
  3. Meal, commuting, housing allowance.
  4. Social insurance and housing provident funds paid by individuals in accordance with law.

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