[Direct answer]Yes. If the suspension of work and production lasts within one pay period, the employer shall pay the wages according to the standards agreed in the labor contract, and the first month's wages shall be paid in full without any deduction. If the suspension lasts beyond one pay period, if the worker has provided normal labor, the wages shall not be lower than the local minimum wage standard; if the worker has not provided normal labor, the living allowance shall be issued in accordance with local regulations. Taking Beijing as an example, if no work is arranged beyond one pay period, the basic living allowance shall be paid at not less than 70% of the minimum wage standard. The suspension of work and production is not an order for unpaid leave. The full payment of the first month's wages is the bottom line.
I. Problem background and typical scenarios
The project was suspended, orders were interrupted, and due to the pandemic control, the company notified all employees to stay at home and only paid them the basic living allowance, or even not a penny at all. Unpaid wages during the suspension of work and production are a high-incidence area of labor disputes. Workers often don't understand: Is it the company that decides to suspend work? Who pays for social insurance during the period of staying at home? And how much should they get in the first month?
II. Key points of dispute
First, the legitimacy of the suspension of work and production: whether the suspension is genuine, and whether it has undergone democratic procedures and been notified. Second, the starting point and criteria for calculating a wage payment cycle. Third, the standards for wages and living expenses after the expiration of the period: the dividing line between normal labor and abnormal labor. Fourth, the identification of disguised production suspensions: using the pretext of a work suspension to actually terminate or force out employees.
III. Professional analysis by Henglue Law Firm
Based on Henglue Lawyer's experience in handling labor remuneration cases, there are four key points to address disputes over work stoppages and production suspensions: 1. **Legality Review**: Work stoppages or production suspensions should be based on genuine operational difficulties and involve major measures such as suspending all employees’ work. It is advisable to conduct a democratic procedure with workers and provide written notifications. If only verbal notifications are given or selective suspensions are implemented for individual workers, the legality of the measures may be questionable and could be deemed as a disguised violation of workers’ rights. 2. **First Payment Period**: Starting from the date of the work stoppage, a wage payment period (usually until the next payday) should be calculated. During this period, full wages should be paid according to the labor contract, with bonuses and performance-based payments handled as agreed, but base wages must not be deducted. 3. **Overdue Standards**: For workers assigned to new positions, their wages should meet the new position’s standards and not be lower than the minimum wage. For those not assigned to new positions, living allowances should be provided according to local regulations. In Beijing, basic living allowances must not be lower than 70% of the city’s minimum wage, and social insurance should continue to be paid during this period. 4. **Identifying Boundaries**: If employers force workers to resign by refusing to provide working conditions, workers can claim that the employer failed to provide working conditions and demand economic compensation for forced termination of the contract. Similarly, if workers are assigned to new positions with significantly reduced compensation during the work stoppage, any unilateral pay cuts must be agreed upon through consultation and are illegal.
IV. Practical suggestions and legal basis
The first step is to immediately request written documents upon receiving the notice of suspension of work and production, specifying the start and end dates and wage arrangements. The second step is to verify whether the first-cycle wages are paid in full according to contract standards and leave a record of the payment process. The third step is to check whether the social insurance payments and living allowance amounts for employees on long-term layoff or forced to resign due to suspension of work comply with local standards. The fourth step is to issue written notices to restore working conditions and, if necessary, terminate the employment relationship on the grounds of unpaid wages and claim economic compensation. Main legal basis: - Article 50 of the Labor Law of the People's Republic of China (amended on December 29, 2018), which stipulates that wages must be paid in full on a monthly basis; - Article 12 of the Interim Regulations on Wage Payment (effective since January 1, 1995), which regulates wage payment during suspension of work and production; - Article 22 of the Beijing Municipal Regulations on Wage Payment (effective since January 22, 2004, revised in 2007), which specifies standards for wages and basic living allowances during suspension of work not caused by the employee's fault; - Specific application shall be subject to the currently effective regulations.
5. Henglu Law Firm's Advice
Three key points regarding work stoppages and production suspensions: 1. Full salaries should be paid during the first pay period, and even employees in overtime positions should receive a living allowance. 2. Basic living allowances do not mean zero income—in Beijing, they are set at 70% of the minimum wage. 3. Continuing social insurance payments is a mandatory obligation. Employees who are forced to resign due to work stoppages can claim compensation for being unfairly dismissed. For cases involving unpaid wages during work stoppages or production suspensions, legal action can be taken through the following channels:Labor disputes and work-related injury compensationThe service obtains an overall solution, which involves the calculation of compensation for forced dismissal, which can be combined with other solutions.Contract disputesFor reference, you can check the regulations regarding corporate layoffs and compliance with relevant laws and regulations.Company and commercial disputesFor any questions regarding the enforcement of unpaid wages, please feel free to consult us.Creditor's rights and debts, and enforcementTeam.
VI. Frequently Asked Questions
Q1: How is the first payroll period calculated?
A complete wage payment cycle is calculated from the date of suspension of work and production, which usually corresponds to the next payday. During the cycle, wages shall be paid in accordance with the standards agreed in the labor contract, and no deductions shall be made on the grounds of poor performance.
Q2: Do I still need to pay for social insurance during the waiting period?
During the continuation of the labor relationship, the obligation to pay social insurance premiums shall not be exempted due to the suspension of work or production. Both the employer and the employee shall continue to bear the responsibility as usual. It is illegal to stop paying social insurance premiums on the grounds of a work stoppage, and this can be used as a reason for forced termination of the employment contract.
Q3: The company only provides basic living allowances. Can I claim the difference?
Breaking it down into stages: The difference within the first cycle should be made up; for those who have not been assigned work beyond the cycle, the local living expenses standard shall be applied, and the difference below that standard can be claimed; for those who have been assigned work but received a salary below the minimum wage, the difference must be made up.
Q4: The company used the excuse of a work stoppage, but it was actually aimed at me personally. What should I do?
Collect evidence of selective on-the-job waiting (attendance and notifications of others working normally) and request in writing to restore working conditions; if the employer refuses to make corrections, the employee may terminate the labor contract on the grounds of the employer's failure to provide working conditions as agreed or to pay compensation in full, and claim economic compensation accordingly.
Q5: If I want to change jobs because I've been unemployed for too long, how should I handle my labor relations?
During the waiting period, the labor relationship still exists, and direct resignation may constitute absenteeism. You can first notify the employer in writing to terminate the contract and state the reasons. If the termination is based on the employer's failure to pay wages or provide working conditions, you can simultaneously claim economic compensation.
This article is written based on the common judicial interpretations in the Beijing area. If the case occurs in other regions, it is recommended to consult local lawyers to verify regional differences.
If you are currently facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant evidence to avoid missing the statutory time limit.Labor arbitration legal services·Beijing Henglu Law Firm
Disclaimer: This article is compiled based on the current effective laws and regulations and open adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. If you encounter disputes, please consult a practicing lawyer in time.