Find useful legal information for your business in China!

102.My wage has been greatly reduced by the employer. Is it legal?

102.My wage has been greatly reduced by the employer. Is it legal?

Answer: The wage standards agreed upon in the employment contract or being implemented by both parties are protected by employment law, and wage reduction may impose significant impact on employees¡¯ financial stability. In principle, employers may not reduce the agreed-upon wage standards specified in the labor contract or decrease wages after an actual wage increase(s)Read more about 102.My wage has been greatly reduced by the employer. Is it legal?[…]

103.Can commercial accident insurance for employee offset employer¡¯s work-related injury liabilities?

103.Can commercial accident insurance for employee offset employer¡¯s work-related injury liabilities?

Answer: Some employers buy commercial accident insurance for their employees in addition to work injury insurance. It is a common question whether the employer can use the commercial insurance compensations to substitute or offset partial or full amount of the work injury compensations it bears, or, from the other perspective, whether the employees are entitledRead more about 103.Can commercial accident insurance for employee offset employer¡¯s work-related injury liabilities?[…]

82.What types of social insurance should employers buy for employees?

82.What types of social insurance should employers buy for employees?

Answer: Employers are obligated to purchase the “five insurances and one fund” for most of their employees. However, for employees on casual hours, employers are only required to purchase work injury insurance, and for foreign employees, there is no mandatory requirement to purchase the housing provident fund. The term “five insurances and one fund” refersRead more about 82.What types of social insurance should employers buy for employees?[…]

83.How are employees’ received wages calculated?

83.How are employees’ received wages calculated?

Answer: Although an employment contract may specify the wages that the employer should pay, yet the employer is entitled to lawfully deduct certain items that the employee is required to contribute or pay, such as for social insurance and personal income tax. The calculation of the wage the employee receives is equal to due wageRead more about 83.How are employees’ received wages calculated?[…]

84.My wages is lower than than the minimum wage. Is this legal?

84.My wages is lower than than the minimum wage. Is this legal?

Answer: Whether your remuneration is under the minimum wage protection first depends on the contractual provisions agreed by the parties. If the contract between the two parties stipulates a remuneration higher than the minimum wage, of course, the company must abide by the contractual provision. However, if there is no contractual agreement on remuneration betweenRead more about 84.My wages is lower than than the minimum wage. Is this legal?[…]

85.Should employers pay wages to employees during an epidemic lockdown?

85.Should employers pay wages to employees during an epidemic lockdown?

Answer: According to the Provisional Regulations on Wage Payment and the regulations by the Ministry of Human Resources and Social Security on the COVID-19 epidemic, for the first month of lockdown, employers are obligated to pay employees according to the wage standard stipulated in employees¡¯ individual employment contracts (or actual wages, whichever is higher). ForRead more about 85.Should employers pay wages to employees during an epidemic lockdown?[…]

86.Is it legal for employers to pay only the minimum wage during the central furlough period of irregular and general work hours?

86.Is it legal for employers to pay only the minimum wage during the central furlough period of irregular and general work hours?

Answer: Whether the employer is in breach of employment law depends on the level of the employees¡¯ normal wages. If the employee’s normal wages far exceeds the local minimum wage, it is probably illegal for the employer to do so. The system of irregular or general work hours is essentially to adjust the standard workhourRead more about 86.Is it legal for employers to pay only the minimum wage during the central furlough period of irregular and general work hours?[…]

87.How do I calculate the wages of employees under the piecework wage system?

87.How do I calculate the wages of employees under the piecework wage system?

Answer: Different from standard hours system where wages are calculated based on work hours, piecework wage system is a type system where wages are calculated based on number of completed work units such as number of products completed on an assembly line or number of newspapers delivered to customers. It reflects the the principle ofRead more about 87.How do I calculate the wages of employees under the piecework wage system?[…]

88.Are the piecework quota and piecework unit price set by the employer reasonable?

88.Are the piecework quota and piecework unit price set by the employer reasonable?

Answer: As explained in ¡°How do I calculate the wages of employees under the piecework wage system?¡±, employees¡¯ wages under a piecework wage system are determined by piecework quota and piecework unit price, normally dictated by employers. The reasonableness of the two, therefore, is vital. If piecework quota and piecework unit price are applied inRead more about 88.Are the piecework quota and piecework unit price set by the employer reasonable?[…]

89.How are wages calculated under package wage system?

89.How are wages calculated under package wage system?

Answer: Package wage system refers to the wage system where employees¡¯ monthly wages, agreed upon by the employers and employees, include a certain number of overtime hours as part of the packaged pay. Instead of providing additional overtime pay after employees did overtime work within the agreed number of overtime hours, the employers pay aRead more about 89.How are wages calculated under package wage system?[…]