By Xu Yingjie, Enterprise Research Institute, DRC

Research Report, No. 28, 2020 (Total 5772) 2020-3-6

Abstract: Since the outbreak of novel coronavirus pneumonia, both the Central and local governments have adopted a series of emergency measures to regulate population flow in a bid to prevent and control the spread of epidemic. As a result, enterprises are faced with some new issues relating to employment. The current labor employment system and the institutional arrangements are made in light of normal situations excluding those special issues under special circumstances such as the epidemic. Thus, the emergency measures in response to the epidemic do not fully comply with the original labor employment laws and regulations. For example, the measures to reduce working time contradicts with the existing system, the obscured nature of the extended holidays during the outbreak of the virus has led to the confusion of wage payment system, the labor employment contracts are enforced in a ‘one-size-fits-all” way and the share paid by enterprises for social security contributions is rigidly executed and etc. It is advisable to take the epidemic as an opportunity to summarize experience and flesh out relevant systems pertinent to enterprise labor employment system in special period. Relevant policy options are raised as follows. One, a leave-in-lieu system for special period needs to be established; two, the salary payment system for special period needs to be improved; three, a system for the enforcement of labor employment contract in a flexible and classified manner in special period needs to be set up; and four, a graded-based system for the reduction, exemption, postponement, return and indemnification of the share paid by enterprises for social security contributions （Note: This includes old-age insurance, health insurance, unemployment insurance, workers' compensation, maternity insurance, and housing provident fund schemes.）in special period needs to be established in line with the local conditions in different areas.

Key words: the novel coronavirus pneumonia epidemic, labor employment, labor system