[Direct answer]According to Article 12 of the "Interim Regulations on Wage Payment" (implemented on January 1, 1995), if the employer suspends work or production for reasons other than the worker's fault: within one wage payment cycle, the employer shall pay the worker's wages according to the standards agreed upon in the labor contract; if the cycle exceeds one month, if the worker has provided normal labor, the wage shall not be less than the local minimum wage standard; if the worker has not provided normal labor, the employer shall pay a basic living allowance according to local regulations — taking Beijing as an example, according to Article 27 of the "Beijing Wage Payment Regulations" (implemented on January 22, 2004), the employer shall pay no less than 70% of the local minimum wage standard. If the company delays payment of wages due to suspension of work or unilaterally reduces the worker's salary, the worker may terminate the labor contract in accordance with Article 38 of the "Labor Contract Law of the People's Republic of China" (implemented on January 1, 2008 and amended in 2012) and claim economic compensation. For more details, please refer to the following link:Labor arbitration and legal services for work-related injury compensationOr ask for adviceBeijing Henglu Law Firm.

1. Problem background and typical scenarios

The sudden drop in orders, financial crunch, project suspensions, or policy-induced closures prompted companies to announce "production suspensions". Employees are most concerned about how their wages will be calculated during this period, whether they need to work, and whether they can resign to receive compensation. Common scenarios include: factories halting production for months, only paying very low "living allowances" without written notice; malls and hotels collectively "laying off" employees during off-seasons with silently reduced wages; companies drastically reducing salaries under the guise of production suspensions, only to later terminate employees on the grounds of poor performance; and employees being dismissed for absenteeism while seeking other jobs during the production suspension period. The rules for paying wages during production suspensions differ from those for normal employment, but companies cannot use this as an excuse to arbitrarily stop or reduce wage payments.

II. Key points of contention

  • The starting point and meaning of "a payroll cycle": The mainstream view is that a payroll cycle starts from the date of suspension of work (for those paid monthly, it is the first natural month after the suspension of work), and the full amount must be paid in accordance with the labor contract during the cycle. It is illegal for the company to halve the cycle by day or cut it off at the next payday.
  • The treatment level after the super-cycle: For those who provide normal labor, the salary shall not be lower than the local minimum wage standard; for those who do not provide normal labor, the basic living expenses shall be paid in accordance with local regulations, with different proportions in different regions. Taking Beijing as an example, the basic living expenses shall not be less than 70% of the minimum wage.
  • The suspension of work and salary cuts, and the termination of the employment relationship: unilateral salary cuts constitute a change to the employment contract and require the consent of both parties; if the employment relationship is terminated during the suspension of work on the grounds of absenteeism, it must be premised on the employer having legally notified the employee to return to work. Otherwise, it constitutes an illegal termination of the employment relationship.

III. Professional analysis by Henglue Lawyers

Henglue Lawyers observed in handling wage disputes arising from work stoppages and production suspensions that almost all of the disputes stem from the "lack of a written notice of work stoppage". Companies often announce the suspension of work verbally, then secretly reduce employees' pay levels when issuing salaries several months later. Employees may not be able to clarify the start date of the work stoppage when they only receive half of their pay slips. In practice, workers are advised to do three things: First, require the company to issue a written notice of work stoppage, or ask management to clarify the start time and arrangements of the work stoppage in the WeChat work group. The chat records can be preserved as evidence in their original form. Second, check the pay records to verify two key points: whether the first pay cycle after the start date of the work stoppage was paid in full according to the contract standard, and whether the pay after the cycle met the legal minimum requirements. The difference can be claimed at any time during the continuation of the labor relationship. Third, if the company still fails to arrange work or pay according to the standard after the work stoppage exceeds the legal time limit, workers can terminate the labor contract in writing according to Article 38 of the Labor Contract Law on the grounds of failure to pay labor remuneration in full and on time, and claim economic compensation according to Article 46. It is crucial not to submit a "resignation due to personal reasons" before securing evidence of unpaid wages. If the company and employees fail to reach an agreement on the work stoppage benefits or if the company is involved in overall wage arrears or closure and transfer, workers can also seek legal redress through other channels. 恒略律师在处理停工停产工资争议中观察到，争议几乎都出在“没有书面停工通知”上。企业习惯口头宣布放假，几个月后发薪时悄悄降档，员工拿着只发了一半的流水却说不清停工从哪天开始。实务中建议劳动者做三件事：一是要求企业出具书面停工通知，或在微信工作群要求管理层明确停工起始时间与安排，聊天记录以原始载体保存即可作为证据；二是对照发薪记录核算两个节点——停工之日起第一个工资支付周期是否按合同标准全额发放、超过周期后是否达到法定下限，差额部分在劳动关系存续期间可随时主张；三是停工超过法定期限企业仍不安排工作、不按标准付费的，可依《劳动合同法》第38条以未及时足额支付劳动报酬为由书面被迫解除，并依第46条主张经济补偿，切勿在未固定欠薪证据前先提交“个人原因辞职”。企业与员工就停工待遇协商不成、涉及企业整体欠薪或关停并转的，也可通过其他途径寻求救济。Business and contract dispute services for enterprisesUnderstand the disposal pathway.

IV. Practical suggestions and legal basis

At the legal basis level: Article 12 of the "Interim Regulations on Wage Payment" (implemented on January 1, 1995) stipulates that if the unit's work stoppage or production suspension is not caused by the worker, the employer shall pay the worker's wages according to the standards stipulated in the labor contract within one wage payment cycle; if it exceeds one wage payment cycle, if the worker provides normal labor, the remuneration shall not be less than the local minimum wage standard, and if the worker does not provide normal labor, it shall be handled in accordance with relevant national regulations. Article 27 of the "Regulations on Wage Payment in Beijing" (implemented on January 22, 2004) further specifies that if the employer does not arrange work for the worker, the employer shall pay a basic living allowance of not less than 70% of the local minimum wage standard. Article 38 of the "Labor Contract Law of the People's Republic of China" (implemented on January 1, 2008 and amended in 2012) stipulates that if the employer fails to pay the worker's wages in full and on time, the worker may terminate the labor contract, and Article 46 stipulates that the employer shall pay economic compensation in such cases; Article 27 of the "Mediation and Arbitration Law of Labor Disputes in the People's Republic of China" (implemented on May 1, 2008) stipulates that if a dispute arises over arrears in wages during the continuation of the labor relationship, it shall not be subject to the one-year arbitration time limit, and if the labor relationship terminates, the application for arbitration shall be made within one year from the date of termination. Practical suggestions: Fix the time of the work stoppage and notify the employer, keep complete payroll records and attendance records, send a written notice to the employer demanding the payment of the wage arrears, and apply for arbitration within the statute of limitations. For related procedures, please consult the relevant authorities.Labor arbitration and legal services for work-related injury compensationTeam.

5. Henglu Law Firm's Reminder

The key to winning a wage dispute during a work stoppage lies in establishing the three facts of the work stoppage timepoint, cycle node, and payment standards through evidence. Three tips: First, maintain communication during the work stoppage to leave records and refuse to accept verbal notifications or sign blank documents; Second, if the living allowance is below the legal minimum or is paid at a discounted rate during the cycle, promptly raise objections in writing to avoid being interpreted as tacit consent; Third, when deciding to terminate the contract, it is necessary to state in writing that the termination is due to unpaid wages during the work stoppage. Submitting a resignation report stating "personal reasons" will result in the loss of the right to compensation. If you are currently experiencing a work stoppage and unpaid wages, it is recommended to first calculate the difference and send a written reminder, then decide on the order of arbitration or termination. You can seek assistance through legal channels.Beijing Henglu Law FirmMake an appointment for a case assessment.

Q1: During the first month of suspension of work and production, must the company pay the employees' salaries in full according to the labor contract?

It is necessary. According to Article 12 of the "Interim Regulations on Wage Payment" (implemented on January 1, 1995), if the suspension of work or production is not due to the worker's fault and occurs within a wage payment cycle, the employer shall pay the wages according to the standards stipulated in the labor contract. During this period, the wages shall not be reduced based on whether the worker provides labor or not. For those who are paid monthly, the first month starting from the date of the suspension of work shall be considered as part of the wage payment cycle. If the company calculates the wages on a daily basis and only pays half a month's wages, or deducts the fixed part of the wages under the name of "performance-based wages", it shall be deemed as failing to pay the full amount. The worker may claim the difference and keep the evidence as the basis for subsequent claims for forced termination and economic compensation.

Q2: Is it legal to suspend work for more than a month without arranging any work and only paying basic living allowances?

After more than one payroll cycle, there are two tiers: for those who have been assigned work and provided normal labor, the wage shall not be lower than the local minimum wage standard; for those who have not been assigned work, the basic living allowance shall be paid in accordance with local regulations. Taking Beijing as an example, according to Article 27 of the "Beijing City Wage Payment Regulations" (implemented on January 22, 2004), the payment shall be not less than 70% of the local minimum wage standard. In other words, "only paying living allowances" may be legal in itself, but the amount must not be lower than the statutory minimum, and the prerequisite are that the enterprise has indeed suspended work due to reasons beyond the worker's control and has not assigned any work to the worker. Both conditions must be met. Employees have the right to require the company to provide a written explanation of the basis for the suspension of work.

Q3: The company unilaterally reduced my salary by half on the grounds of a work stoppage. What should I do?

A salary reduction constitutes a modification of the labor contract. According to Article 35 of the Labor Contract Law, such a modification must be agreed upon with the employee in writing. A unilateral salary reduction is invalid. The employee may refuse to sign the salary reduction document and continue to claim wages at the original standard. For the salary reduction differences that have already occurred, the employee may issue a written demand for supplementation and keep the transaction records. If the employer fails to make the payments within the prescribed period, the employee may terminate the contract unilaterally in accordance with Article 38 and claim economic compensation in accordance with Article 46. It is important to retain the wage transaction records before and after the salary reduction, as well as the notifications and communication records regarding the position arrangements, to prove that the salary reduction was unilaterally imposed by the company rather than the result of mutual agreement between the parties.

Q4: What evidence needs to be collected during the dispute over the suspension of work?

The five key categories are as follows: 1. Facts of the suspension of work, such as suspension notices, holiday arrangements, announcements in work groups, and records of access control or attendance being suspended. 2. Time points: the last working day and the start date of the suspension of work, which are used to define the boundaries of "one pay period". 3. Payment records: complete bank transaction records and pay slips before and after the suspension of work. 4. Work arrangements: whether employees were required to return to work, and records of work schedules and deliverables. 5. Communication evidence: written communications with HR or management, as well as audio recordings. The evidence should be organized around three questions: 1. When did the suspension of work begin? 2. Were wages paid adequately during the suspension period? 3. Were wages paid beyond the suspension period but not reaching the required level?

Q5: If the employer fails to pay wages during the suspension of work for a long time, will the statute of limitations for arbitration expire?

The disputes over unpaid wages during the continuation of the labor relationship are not subject to the one-year arbitration statute of limitations. According to Article 27 of the "Mediation and Arbitration Law of the People's Republic of China for Labor Disputes" (effective May 1, 2008), if a dispute arises over unpaid labor compensation during the continuation of the labor relationship, the worker's application for arbitration is not subject to the one-year statute of limitations; however, if the labor relationship terminates, the application for arbitration must be filed within one year from the date of termination. The wage difference during the work stoppage period belongs to labor compensation, and can be claimed at any time during employment; if the worker has already left the job or intends to be forced to terminate the employment relationship on the grounds of unpaid wages, the application for arbitration must be filed within one year after the termination or termination of the employment relationship to avoid losing the right to seek redress due to exceeding the time limit.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the evidence materials, to avoid missing the statutory time limit. →Labor arbitration legal services·Beijing Henglu Law Firm