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New Rule to Protect Wages

Employers in Shenzhen may face fines of up to 50,000 yuan (US$6,040) if they fail to pay their employees or delay wages within a period specified by labor authorities, reported Monday's Shenzhen Daily.

A new rule, which was passed at a meeting of the Standing Committee of the Shenzhen Municipal People’s Congress on Friday, requires any employer who delays paying employees to pay full wages within a prescribed period and pay compensation equivalent to 25 percent of the total amount of back wages.

Labor administration authorities said problems about unpaid or delayed wages accounted for 70 percent of the total labor disputes this year. With the new rule in place, employers are obliged to offer payroll advice when paying wages. The payroll advice must list details of payment including the employer’s and employees’ names, the amount, the period covering the wages, extra payments and deductions. Payroll records must be kept for at least two years. Those who fail to make or keep the payroll records will face fines of 20,000 to 50,000 yuan, according to the rule.

Construction contractors are responsible for paying workers if sub-contractors, qualified or unqualified, maliciously delay payment when construction work is finished.

The rule also sets clear definitions of extra wages for extra work, wage standards for holiday leave, wage deductions and minimum wages.
(Shenzhen Daily August 30, 2004)

72.7 Pct Chinese Employees Satisfied with Pay
Unrewarded Labors
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