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Good News for Struggling Companies
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Stabilizing labor relations in challenging times
On 18 February 2020, the executive meeting of the State Council was held in Beijing. The meeting decided to take additional measures to stabilize the economy and labor market by provisionally reducing a company’s contributions for social insurance and defer payments for the housing provident fund etc.国务院总理李克强2月18日主持召开国务院常务会议,决定阶段性减免企业社保费和实施企业缓缴住房公积金政策,多措并举稳企业稳就业。
The meeting stressed that, at present, one urgent task is to stabilize the labor market as a stable labor market results in stable businesses. The meeting determined to:会议强调,当前一项迫切任务是稳就业。稳就业就必须稳企业。会议确定:
2. At the same time, before the end of June, companies may also apply to defer their payments to the housing provident fund. Failure by employees to repay their housing provident fund loans due to the epidemic will not be treated as a default.2. 同时,6月底前,企业可申请缓缴住房公积金,在此期间对职工因受疫情影响未能正常还款的公积金贷款,不作逾期处理。
In addition, according to the State Council’s press conference on joint defense and control mechanism on 19 February 2020, the Ministry of Human Resource & Social Insurance and the Ministry of Finance together introduced new measures to increase the support for SME’s. In the event that the redundancy rate of SME’s is not higher than the previous year's control target of the unemployment rate benchmarked to the national urban survey, which is 5.5%, or lay-offs are not more than 20% for companies with less than 30 employees, such companies may claim refund of social insurance contributions as stabilization support. This would amount to 50% of the yearly unemployment insurance contributions such companies made in 2019.此外,根据2020年2月19日举行的国务院联防联控机制新闻发布会,人社部会同财政部出台新举措,加大对中小微企业的支持力度。如果中小微企业裁员率不高于上年度全国城镇调查失业率控制目标即5.5%、30人以下企业裁员率不超过20%,都可以申领稳岗返还,即企业所缴上年度失业保险费的50%。
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