subject: Is Enterprises Delayed Paying Wages Against The Law? [print this page] For a variety of reasons, many enterprises often delay to pay wages to their staffs. Delayed paying wages means that the enterprise paid wages later than the appointed time in the contract of labor. Delayed paying wages put in legal terminology is arrears of wages. Whether the enterprises behavior of arrears of wages violates the provisions of the laws depends on the enterprise has a justification or not. If the enterprise is in arrears with the wages without justification, its behavior violates the provisions of the laws and shall take the unfavorable consequences.
Article 50 of the "Labor Law of the Peoples Republic of China" provides that: Wages shall be paid monthly to laborers themselves in form of currency. The wages paid to laborers shall not be deducted or delayed without justification. Article 18 of the Additional Provisions of the Payment of Wages Tentative Provisions makes a specific definition and explanation about arrears of wages without justification. Article 18 arrears of wages without justification refer to the employing unit have not paid wages to laborers overrunning the appointed payday without justification, excluding: (1) employing unit cannot pay wages for the present because of irresistible natural calamities, war and so on; (2) where employing unit runs deep into difficulties in production operation and the fund turnover is suffered, the employing unit can delay to pay wages to laborers with agreement of its trade union; the longest deferred time limit, can be decided by the province (municipality, municipality directly under the Central Government) labor administrative department according to local actual condition. Arrears of wages under other conditions all belong to arrears of wages without justification. In accordance with Article 26 of Regulation of Beijing Municipality on Payment of Wages, for enterprises in Beijing, the longest deferred time limit is 30 days. Taking an enterprise in Beijing as the example, where the enterprise cannot pay wages for the present due to its difficulties in production operation, the wages paid to labors can be delayed, but shall be restricted by following requirements: 1) the employing unit shall explain the situation to all of its staff and reaching a unanimity through consultation with its trade union or representatives of the staff; 2) the longest deferred time shall not exceed 30 days. Apart from these above situations, enterprise in Beijing delayed paying wages is an illegal act and shall be held responsible for all the unfavorable consequences arising therefrom.
by: Sino-Link Consulting
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