China: Different Provincial and Municipal Governments Announce Policies to Support Employers during Epidemic Period

The outbreak of the novel coronavirus pneumonia has caused financial difficulty to numerous employers in China, especially for those in the retail, restaurant and tourism industries. To support employers in their efforts to respond to the outbreak and pull through, especially during the epidemic period, dozens of provincial and municipal governments have announced policies that help ease the burden on employers with respect to individual-employee costs, while also seeking to stablise employment relationships.

The policies that have been announced by different local governments primarily include: (i) unemployment insurance contributions may be returned to employers, if such employers are qualified and have very small-scale layoffs or none at all; (ii) with filing procedures completed, employers are allowed to delay contributions for social insurance until the end of the current epidemic; and (iii) if employers organise online training for employees during the suspension of work, such employers will be provided with a subsidy equal to 95% of actual expenses incurred.

For more information on these articles or any other issues involving labour and employment matters in China, please contact Carol Zhu (Partner) of Zhong Lun Law Firm at carol.zhu@zhonglun.com or visit www.zhonglun.com.