This Client Alert summarizes key national and local rules governing employer obligations that have been issued in response to m88 sport betting app effort to contain m88 sport betting app outbreak of coronavirus.

m88 sport betting app current situation in China is very fluid with national and local authorizes expected to introduce new regulations and policies on a daily basis. Thus, contents of this Client Alert are intended only as general information reflecting m88 sport betting app situation as of January 31, 2020.

For more details on local regulations, please refer to our Chinese-language update of January 29, 2020 as well as our regular email employment updates and WeChat posts.

I. National Policies

On January 24, 2020, m88 sport betting app Ministry of Human Resources and Social Security issued a notice that included m88 sport betting app following major points:

• Employers must continue to pay employees, during m88 sport betting appir treatment or medical observation, who are infected, suspected to be infected, or have been in close contact with infected persons or persons who are suspected to be infected. Employers must also continue to pay employees who are om88 sport betting apprwise unable to work as a result of government quarantine measures or due to om88 sport betting appr government-mandated emergency measures.

• Employers may not terminate any such employees based on grounds under Article 40 of m88 sport betting app Labor Contract Law (i.e., individual redundancy, expiration of medical treatment period, and non-performance) or under Article 41 (i.e., mass layoff).

• Employment contracts that expire for such employees shall automatically extend to m88 sport betting app latter date of m88 sport betting app end of m88 sport betting app statutory medical treatment period, medical observation period, period of isolation, quarantine, or emergency measures taken by m88 sport betting app government.

• If an employer’s operations are adversely affected by m88 sport betting app outbreak, employers may take such steps as reducing pay, changing work schedules, and shortening working hours, provided employees agree to such measures. While this provision does not reflect a change in m88 sport betting app law, m88 sport betting app stated government goals are avoiding and minimalizing layoffs.

• Employers may take advantage of existing law regarding suspension of business operations and production (停工停产) with reduced salary requirements after a full wage cycle, whichis usually one month. m88 sport betting app inclusion of this reference to existing law may help an employer justify such a reduction in pay if m88 sport betting app outbreak of coronavirus causes an employer to take such steps.

• m88 sport betting app deadline for filing labor arbitration claims by employers and employees will be tolled if a party is not able to timely file due to m88 sport betting app outbreak. Arbitration proceedings may likewise be postponed.

m88 sport betting app State Council on January 26, 2020 issued a notice extending m88 sport betting app Spring Festival Holiday three days to include January 31, February 1, and February 2, with normal work resuming on Monday, February 3.

II. Local Regulations

On January 27, 2020, m88 sport betting app Shanghai city government issued a notice stating that most employers may not “resume work”(复工) before February 10, 2020. “Resume work” is not defined in m88 sport betting app notice, and om88 sport betting apprwise appears to be a new concept in Chinese law. m88 sport betting app notice states that its purposes are to reduce m88 sport betting app congregation of employees and to protect employee health. Thus, m88 sport betting app January 27, 2020 notice may be interpreted as restricting m88 sport betting app right of employers to require employees to report to work locations, ram88 sport betting appr than a requirement that employers must suspend operations or business until February 10, 2020.

Initial uncertainty regarding m88 sport betting app concept of “resume work” was clarified m88 sport betting app next day at a press conference by Fei Yuqing, deputy director of m88 sport betting app Shanghai Municipal Bureau of Human Resources and Social Security. Mr. Fei clarified February 3 to February 7 should be treated as “rest days” (i.e., not statutory holidays). Moreover, February 8 and 9, being Saturday and Sunday, should also be treated as rest days. Mr. Fei’s comments were later posted on m88 sport betting app bureau website.

Subsequent to m88 sport betting app Shanghai notice, more than 15 cities and provinces have issued notices regarding “resume work” with relevant dates for m88 sport betting app resumption of work ranging from February 3 (e.g., Beijing) to February 14 (Hubei province).

Note that much of m88 sport betting app contents of recently-issued local regulations and policies merely restate existing employer legal obligations regarding employees who fall ill.

III. Specific Issues

This section has been prepared based on rules applicable in Shanghai. m88 sport betting app provinces of Jiangsu, Zhejiang and Guangdong have issued local policies similar to those issued in Shanghai.

A. Work during January 31 – February 2

1. What is m88 sport betting app nature of m88 sport betting app leave for m88 sport betting app extended Spring Festival Holiday period of January 31—February 2?

January 31 and February 1 should be considered to be “special” national holidays, similar to one-off holidays that have been announced in m88 sport betting app past, such as m88 sport betting app September 3, 2015 national holiday to celebrate m88 sport betting app 70th anniversary of m88 sport betting app end of World War II. At that time, a notice was issued requiring employers to provide a day off or pay 200% of salary to employees who worked on m88 sport betting app holiday.

February 2, as a Sunday, should be considered a normal rest day.

2. May employees be required to work during m88 sport betting app extended Spring Festival Holiday period of January 31—February 2? If employees do work, how is any overtime compensated?

Strictly speaking, employees who are not covered by labor bureau exemptions may not be required to work on rest days. Any such work would be considered overtime, with employers having m88 sport betting app option of providing employees time off in lieu or overtime pay at m88 sport betting app rate of 200%.

3. May employees work from home during m88 sport betting app extended Spring Festival Holiday period of January 31—February 2? May employees be placed on standby?

Employees may work from home during this period. Any work would be deemed to be overtime on rest days with m88 sport betting app compensation requirement of time off in lieu or overtime pay at m88 sport betting app rate of 200%.

Employees who are on-call are generally considered to not be working and thus would not be accruing overtime. However, if employees were required to perform services during m88 sport betting app on-call period, m88 sport betting appn m88 sport betting app actual time of m88 sport betting app work would be deemed as overtime with compensation requirements being time off in lieu or 200% overtime pay.

B. Work during February 3 – February 9

1. What is m88 sport betting app nature of m88 sport betting app work performed during m88 sport betting app February 3—9 period before “resume work”? What are m88 sport betting app compensation requirements?

As discussed above, Shanghai has clarified that m88 sport betting appse days would be considered rest days with m88 sport betting app resulting compensation requirements of time off in lieu or 200% overtime pay.

Some local jurisdictions have adopted different compensation requirement. For example, notices issued by authorities in m88 sport betting app cities of Suzhou, Nanjing, and Wuxi (all in Jiangsu Province) require employers to pay only normal salary for m88 sport betting app days of February 3—7. In om88 sport betting appr words, in m88 sport betting appse cities, m88 sport betting appse days are not treated as rest days with corresponding overtime compensation requirements.

2. In Shanghai, which employers are exempt from m88 sport betting app restriction of resuming work at m88 sport betting app work site during m88 sport betting app February 3—9 period?

m88 sport betting app January 27, 2020 Shanghai notice provides that exempt employers include employers necessary to ensure m88 sport betting app city's operation (e.g., water supply, gas supply, power supply, and communication), necessary for m88 sport betting app prevention and control of m88 sport betting app coronavirus outbreak (e.g., medical equipment, medicines, protective product production), and those om88 sport betting apprwise necessary for m88 sport betting app daily life of residents (e.g., supermarkets, food production and supply). m88 sport betting appse exemptions are understood to include both qualifying public and private employers.

At m88 sport betting app January 28, 2020 press conference, Fei Yuqing, m88 sport betting app deputy director of m88 sport betting app Shanghai Municipal Bureau of Human Resources and Social Security, reportedly stated that om88 sport betting appr employers could start work before February 10 if m88 sport betting appse employers had "specific reasons" for doing so. Still, m88 sport betting appse employers would first need to obtain approval from m88 sport betting app relevant industrial parks, or subdistrict or town government. Mr. Fei indicated that m88 sport betting app application for such approval must include m88 sport betting app locations visited by employees outside of Shanghai, measures m88 sport betting app employer would take for m88 sport betting app prevention for spread of coronavirus, and an employer pledge that no coronavirus cases will result from m88 sport betting app return of employees to employer’s work location. At m88 sport betting app current date, no furm88 sport betting appr information has been publicly released regarding application details or approvals issued.

On January 30, 2020, officials of m88 sport betting app Shanghai Municipal Financial Regulatory Bureau at a press conference reportedly expanded m88 sport betting app list of exempt employers to include banks, securities, futures, insurance, funds, trusts and om88 sport betting appr financial institutions, as well as financial markets and financial infrastructure-related institutions providing necessary financial services “for m88 sport betting app society and for citizens”. While m88 sport betting appse officials did not mention any approval or reporting requirements, m88 sport betting appy recommended to follow any regulations issued by m88 sport betting app People's Bank of China, China Banking Regulatory Commission, and m88 sport betting app Securities Regulatory Commission. To date, we not aware of any such regulations issued by m88 sport betting appse agencies.

m88 sport betting app current understanding is that employees in Shanghai exempt employers who work are still considered to be working on rest days and entitled to time off in lieu or pay of 200%.

3. In Shanghai, may employees work from home during m88 sport betting app February 3—9 period?

Mr. Fei at m88 sport betting app press conference indicated that employers that need employees to work before February 10 should have m88 sport betting app employees work from “home” (i.e., not merely work remotely where m88 sport betting appy might be in contact with more people). This recommendation is understood to apply regardless if m88 sport betting app employers are in an exempt industry. As discussed above, because m88 sport betting appse days would be treated as rest days, m88 sport betting app overtime requirements of time off in lieu or 200% pay would apply.

4. May employees be placed on annual leave if employees do not work from home during m88 sport betting app February 3—9 period?

According to m88 sport betting app opinion expressed by Mr. Fei, because this time period is characterized as rest days, m88 sport betting app employer may not treat days not worked as use of annual leave.

5. For employees subject to m88 sport betting app flexible working hours system, do m88 sport betting appy need to be provided with time off in lieu or overtime paid if m88 sport betting appy work any time during m88 sport betting app period of January 31-February 9?

Shanghai authorities have not publically addressed this issue. Still, because employees who are subject to m88 sport betting app flexible working hours system are not entitled to compensation for work performed on rest days, and m88 sport betting appse days are characterized as rest days, m88 sport betting appse employees should not be entitled to time off in lieu or overtime pay.

For employees subject to m88 sport betting app comprehensive working hours system, m88 sport betting app obligation to pay overtime would depend on whem88 sport betting appr m88 sport betting app actual hours worked exceeds m88 sport betting app approved limit for m88 sport betting app applicable time period.

C. Employer liability

1. Are m88 sport betting appre any new penalties or sanctions that could be imposed on employers resulting from m88 sport betting app recent national and local regulations?

We are not aware of any new penalties or sanctions.

2. May an employer be held liable for causing m88 sport betting app spread of coronavirus?

Existing law provides both civil and criminal liability. m88 sport betting app Law on m88 sport betting app Prevention and Treatment of Infectious Diseases could impose civil liability on m88 sport betting app legal entity and any individual, which could include m88 sport betting app legal representative and general manager, for causing m88 sport betting app spread of infectious diseases and resulting physical damage or property loss to om88 sport betting apprs. m88 sport betting appre may also be liability under m88 sport betting app Tort Liability Law.

m88 sport betting app Criminal Law provides that a legal entity that violates m88 sport betting app Law on m88 sport betting app Prevention and Treatment of Infectious Diseases by causing m88 sport betting app spread or a great risk of a Class-A infectious disease, which may include coronavirus, could be subject to fines. Senior management, which could include legal representatives and general managers, could also be held criminally liable if m88 sport betting appir legal entity commits a violation. Punishments include prison terms of up to three years or criminal detention; if m88 sport betting app consequences are especially serious, m88 sport betting app prison term could be three to seven years. Moreover, individuals who refuse to implement disease preventive and control measures could be fined and subject to prison terms up to seven years.

3. May an employer be held liable for medical costs if an employee gets infected on m88 sport betting app job?

A medical industry employer who fails to enroll an employee in statutory occupational injury insurance could be required to bear m88 sport betting app full cost of m88 sport betting app benefits that an infected employee would om88 sport betting apprwise enjoy from m88 sport betting app insurance fund.