A citywide check of delayed salary payments launched Monday by the Shenzhen municipal government will try to flush out and discipline companies owing wages to employees.

The inspection will last three months, with law enforcement teams from more than 10 municipal bureaus to check on unpaid wages.

Following the inspections, a new regulation governing salary payments will take effect in all districts from Dec. 1.

Under the new regulation, employers are required to pay their employees at least once a month and not lower than the minimum salary. Employers cannot use commodities to make up salaries. Although employers are allowed to have a five-day extension for delayed payment, any delay exceeding five days should first be approved in writing by labor unions or employees. It is illegal for any company to delay employees' salaries for more than 15 days.

Any company paying their staff lower than the statutory rate should compensate employees 200 percent of the difference.

Employers should pay for overtime work within one month, or compensate with deferred leave. However, at least 300 percent of salary should be paid for overtime work on holidays. Compensatory leave for holiday work is not allowed.

Employers failing to pay employees on time can result in an extra 25 percent compensation being paid as well as full wages.

At least 60 percent of salary should be paid to employees during sick leave, which should not be lower than 80 percent of the minimum monthly rate. Employees should pay full salary to staff during maternity leave and leave for birth control surgery.

Companies failing to comply with the regulations faced fines of up to 50,000 yuan (US$6,000), said the municipal labor and social security bureau.

During the past 10 months, the bureau recovered more than 100 million yuan in unpaid wages for employees. Since 1997, the city has paid more than 30 million yuan to employees for companies owing wages.

(Shenzhen Daily November 11, 2004)

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