Case Description

On April 4, 2022, Shanghai issued a notice on the official account to make it clear that until the control measures are clear, Shanghai will continue to implement closure and control management, and strictly implement the "stay at home" policy in addition to medical treatment due to illness. Although the security zone has been unsealed in an orderly manner recently, residents are still encouraged to work from home and not go out unnecessarily. Under the aforementioned epidemic control policy, some enterprises in Shanghai are facing the need to stop production. With the recurrence of the epidemic, some enterprises in other provinces and cities across the country, except Shanghai, are also facing the same problems. This article will provide tips on relevant precautions for enterprises to stop production due to the epidemic.

Lawyer Analysis

1、 Object of shutdown

Downtime and production suspension can be divided into overall shutdown and partial shutdown. The enterprise determines whether to stop work as a whole, or individual departments or positions based on its specific situation.

2、 Suspension of production does not require approval from relevant government departments

"The suspension of work and production caused by the impact of the epidemic is different from the suspension of work and production caused by poor operation and management of the enterprise, which is not caused by employees or the enterprise itself. Moreover, currently, laws and regulations do not require the enterprise to go through the approval procedures for suspension of work and production, so if the enterprise is affected by the epidemic, it is not necessary to go through the approval procedures.". However, enterprises can seek opinions from trade unions, management committees, affiliated streets, labor supervision, and other departments on matters related to shutdown and production suspension.

3、 The notification procedure shall be followed for suspension of production

"Suspension of production of an enterprise involves changes in the labor conditions, employee salaries, and other important matters related to the immediate interests of employees provided by the enterprise. Therefore, if the enterprise is affected by the epidemic, it should perform the necessary notification procedures to employees, and notify all employees in writing of the reasons, duration, salary, and conditions for resumption of work.". If employees cannot be notified in writing due to the epidemic, they can also be notified by email, online conference, WeChat, phone, and other forms. However, regardless of the form of notification, the enterprise should retain relevant evidence of fulfilling the notification procedure. Among them, wages and benefits are related to the immediate interests of employees, and enterprises should determine the wages and benefits of employees during the shutdown period through democratic consultation and publicity procedures; If agreement cannot be reached, it may be implemented in accordance with the relevant policies of the enterprise's location.

4、 Safety production management should still be comprehensively strengthened during the epidemic period

Enterprises that have suspended production and shutdown should comprehensively strengthen their internal safety management, strictly implement epidemic prevention and control measures such as closed management, and arrange necessary on-duty personnel to strengthen internal safety inspections, especially the safety inspection of fire and electricity use in employee dormitories. For some enterprises that have stopped production, such as key positions and frontline operators who are short of personnel and do not have the conditions for safe production, production should be immediately stopped, and personnel in safety positions should never be allowed to operate without vacancy.

5、 Arrangements for employees

For employees who do not stop work, if there is a change in their labor contract position, salary, etc., they should promptly negotiate with the employee and sign a written labor contract change agreement and strictly implement it. For employees who are suspended from work, their wages or living expenses during the period of suspension shall be paid in full in accordance with local policies.

6、 Notice of resumption of work and employee arrangement after shutdown

After the epidemic situation has eased, if the enterprise that has stopped production plans to resume work, it should issue a notice of resumption to the employees who have stopped work, specifying the relevant matters for resumption of work. If some employees who have stopped production cannot return to work, arrangements should be made for the reasons why the employees cannot return to work, or work at home, or they should be treated as annual leave, welfare leave, personal leave, or sick leave through consultation.