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Forced leave will cost $82 a month

By Xie Chuanjiao (China Daily)
Updated: 2009-02-25 07:46

Local enterprises in Beijing will have to pay their employees a minimum monthly wage of 560 yuan ($82), or 70 percent of the city's lowest pay scale, if they are "forced to go on leave" in the wake of the global financial crisis, according to a national regulation released yesterday.

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Companies must also adequately compensate laid-off workers and clear all their dues, authorities said.

As per the regulation, jointly released by the ministries of human resources, finance and taxation, enterprises bearing the brunt of the crisis have to meet the conditions laid down by the government.

Some of the conditions include stable employment and management policies that are in line with national and local environment protection regulations and the provision of social security for employees in accordance with the law.

"If employers are not able to pay their workers due to financial problems, they can pay the employees in installments if both parties agree," the regulation states.

Enterprises that lay off more than 20 laborers, or more than 10 percent of the total staff at one go, must inform the local labor department in writing 30 days in advance, according to a guideline recently released by the Beijing municipal labor and social security bureau and Beijing federation of trade unions.

Similarly, any plans of layoffs affecting more than 10 percent of the city's enterprises must be reported to the related labor unions.

And if the union raises an objection, the enterprises should reconsider their decision, the authorities said.

To cut costs in the face of the economic downturn, several local firms have shortened working hours, increased training shifts, cut salaries of senior-level staff, and also encouraged staff to go on leave without pay.

Mo Rong, a professor with the China Labor Science Research Institute, lauded the new regulation, which ensures staff forced to go on leave gets a minimum monthly wage to live on.

"The new measure will help restrict enterprises from excessively dismissing staff," Mo told China Daily.

Authorities said labor unions were expected to play a bigger role in securing workers' interests by strengthening supervision.

"It is important to maintain the laborers' lawful rights as well as the interests of the enterprises," Mo added.

A local enterprise said it was already adhering to the government's latest policy.

Geng Xiaodong, President of the Beijing Huanfengyuan Investment and Management Co Ltd, said: "We are paying a minimum of 900 yuan per month to our staff going on leave.

"Paying the workers' minimum living expense should not be difficult for enterprises."