Recently, COVID-19 infection broke out around the world. In order to response to this epidemic, ensure the safety of peoples’ lives, health and stable economy development, Chinese government has taken a series of targeted countermeasures and implemented relevant laws, regulations and guidelines. These legislations involve working hours, holidays, wages, health & safety, environment protection and other fields, which has a certain impact on CSR audit. This issue of CSR Gazette is dedicated to sharing CSR legislations on COVID-19.

Special Issue for COVID-19

Labour
< Notice of the General Office of the State Council on Extending the 2020 Chinese New Year Holiday >
< Opinions on Stabilizing Labor Relations and Supporting the Resumption of Production and Reproduction of Enterprise During the Periods of Epidemic Prevention and Control of COVID-19 Infection >
< Notice on Properly Handling Labor Relation Issues During the Periods of Epidemic Prevention and Control of COVID-19 Infection >
< Notice on Phased Reduction of and Exemption from Corporate Social Insurance Premiums >
< Guiding Opinions on the Phased Reduction of Employees Basic Medical Insurance Premiums >
< Notice on the Assurance Issue of Medical Staff and Related Staff Members Infected COVID-19 Pneumonia due to Performance of Work Duties >
<Ten Provisions to Support Return to Work and Production by the General Administration of Market Supervision, the National Medical Products Administration, the State Intellectual Property Bureau>

Health and Safety
< Notice on Supporting the Enterprises that Participated in Liability Insurance of Safety Production Response to COVID-19 >
< The Ministry of Emergency Management of PRC Issued Eight Measures to coordinate the Promotion of the Safety Precautions and resumption of Production >

Environment
< Notice on Carrying out the Work of Clean-up and Rectification for Stationary Pollution Source Pollutant Discharge Permission and 2020 Pollutant Discharge Permit Issuance and Registration >
< Notice on Providing Emergency Service Assurance for Environmental Impact Assessment During the Periods of COVID-19 Prevention and Control >

Minimum Wage Standard Update
Guangxi Zhuang Autonomous Region

Summary of Policy for COVID-19 and Law Updates:

Labour

1.< Notice of the General Office of the State Council on Extending the 2020 Chinese New Year Holiday> (2020-01-26)
With the Approve of the State Council, in order to strengthen the prevention and control of COVID-19 infection, effectively reduce people’s gathering, block the spread of the epidemic, and better protect the people’s lives and health, the specific arrangements for extending the 2020 Chinese New Year Holiday are now notified as follows:

• Extend the 2020 Chinese New Year Holiday to 2^nd February (the ninth day of the first lunar month, Sunday), and work normally from 3^rd February (Monday).
• Employees who cannot take vacation due to epidemic prevention and control shall be arranged compensatory leave in accordance with the Labor Law of the People's Republic of China. Wages or compensation of unused leave shall be implemented in accordance with relevant policies.

2. < Opinions on Stabilizing Labor Relations and Supporting the Resumption of Production and Reproduction of Enterprise During the Periods of Epidemic Prevention and Control of COVID-19 Infection > (2020-02-07)

2.Flexible handling of labor issues during the period of epidemic prevention and control

(1) it is encouraged to resolve employment issues before returning to work through negotiation. If affected by the epidemic, the employees cannot return to work on time or the enterprise cannot start production, the enterprise should be instructed to actively communicate with the employees. Enterprises that can work remotely can arrange employees to work at home through flexible working methods such as telephone and Internet; otherwise, the enterprises shall consult with employees to use various types of vacations in priority, including paid annual leaves and enterprise welfare leaves. The trade unions of enterprises should be instructed to actively mobilize workers working together with enterprises, while taking into account the legitimate rights and interests of both enterprises and employees, to help enterprises reduce the losses caused by the epidemic as much as possible.

(2) Encourage flexible arrangement of working hours. During the period of epidemic prevention and control, in order to reduce the people’s gathering, it is necessary to encourage the resumption enterprises that comply with the regulation to implement flexible employment measures, and negotiate with employees to adopt flexible arrangements for working hours such as staggered office hours or flexible commuting. For enterprises that need to work overtime urgently to undertake government epidemic prevention and control tasks, under the premise of guaranteeing the physical health and work safety of employees, should be instructed to negotiate with trade unions and employees to extend working hours appropriately to deal with the emergency production tasks, and are not subject to the extended working hours limit according to law.

(3) Guide and normalize employment management. During the period of epidemic prevention and control, enterprises should be guided to fully understand the situation of employees being implemented with quarantine measures or emergency measures taken by the government, and enterprises shall not terminate labor contracts with employees or return the dispatched employees, who are affected by relevant measures and cannot provide normal labor during the period. The resumption enterprises that accords with regulations, should be guided to provide necessary anti-epidemic protection and labor protection measures, and actively mobilize employees to return to work. For employees who are unwilling to return to work, the trade union of the enterprise should be instructed to communicate the requirements of the epidemic prevention and control policy and the importance of returning to work, and actively persuade employees to return to work in a timely manner. If persuasion does not work or employees refuse to return to work due to other improper reasons, the enterprise should be instructed to deal with it in accordance with the law. Encourage enterprises to actively explore ways and methods of stabilizing labor relations. Enterprises that still need to lay off employees after taking corresponding measures, should be guided to formulate layoff plans, perform relevant procedures in accordance with the law, properly handle labor relations, and maintain the normal production and operation order of enterprises.

3.To deal with wages issues during the period of epidemic prevention and control through negotiation.

(4) Support the negotiation of wages and treatment issue during the absent period. During the period of postponed returning to work or absence from work affected by epidemic situation, for employees who still cannot provide normal labor after using all types of vacations or other employees that cannot provide normal labor, the enterprises should be guided to negotiate with the employees in accordance with the relevant provisions of the state on wage payment during production suspension, that the wages shall be paid according to the standards stipulated in the labor contract within a wage payment cycle; the living expenses shall be paid according to the relevant provisions for more than a wage payment cycle.

(5) Support enterprises with difficulties to negotiate wages issue. Enterprises that have difficulties in production and operation affected by epidemic impact, is encouraged to negotiate with employees through consultation and democratic procedures to adjust wages, work shift or rotate days off, shorten working hours and other methods to stabilize employment; enterprises that have no ability to pay wages, should be guided to negotiate with the trade union or employee representatives to defer payment to help enterprises reduce the pressure on capital turnover.

(6) Protect the rights and interests of employee’s wages and treatment. For employees who cannot provide normal labor due to quarantine according to law, the enterprise should be instructed to pay their wages as per normal labor; after the quarantine period, employees who still need to stop working for treatment should be paid according to the relevant provisions of medical treatment period. For employees who cannot take time off due to epidemic prevention and control during the period of extended Chinese New Year Holiday, the enterprises should be instructed to arrange compensatory leave first, and for those who cannot arrange compensatory leave, pay overtime wages according to law.

3.< Notice on Properly Handling Labor Relation Issues During the Periods of Epidemic Prevention and Control of COVID-19 Infection > (2020-01-24)

1. For employees, including COVID-19 infected pneumonia patients, suspected patients, and close contacts during their isolation treatment or medical observation, as well as employees who cannot provide normal labor due to the implementation of quarantine measures or other emergency measures by the government, enterprises shall pay their wages during these periods and shall not terminate labor contract with these employees in accordance with Articles 40 and 41 of the Labor Contract Law. During these periods, if the labor contract expired, it will be postponed to the end of the employee's medical treatment period, the medical observation period, the quarantine period, or the emergency measures taken by the government finished.

2. Enterprises that are suffers from difficulties in production and operation due to the epidemic impact, may negotiate with employees to adopt methods such as adjusting wages, working shift or rotating days off, shortening working hours to stabilize employment, and try not to lay off staff or reduce staff. Eligible enterprises can obtain the subsidies of stabilize employment according to regulations. When suspending production within a wage payment cycle, the enterprise shall pay employees wages according to the standard stipulated in the labor contract. For more than one wage payment cycle, if the employees provide normal labor, the wages paid by the enterprise shall not be lower than the local minimum wage standard; if the employees do not provide normal labor, the enterprise shall pay living expenses. The living expenses standard shall be implemented in accordance with the provisions prescribed by the provinces, autonomous regions and municipalities.

4.< Notice on Phased Reduction of and Exemption from Corporate Social Insurance Premiums > (2020-02-20)

In accordance with the relevant provisions of the Social Insurance Law, with the consent of the State Council, the relevant issues regarding phased reduction in or exemption from required premiums to be paid by employers for their employees’ basic endowment insurance, unemployment insurance, and work-related injury insurance (hereinafter referred to as the three types of social insurance) are now being notified as follows:

1.Since February 2020, based on the situation of the epidemic impact and the fund affordability, for medium, small, and micro enterprises, all provinces, autonomous regions, municipalities (except for Hubei Province) and the Xinjiang Production and Construction Corps (hereinafter referred to as the provinces) can exempt from required premiums to be paid by employers for three types of social insurances, but the exemption period shall not exceed 5 months; for other insured entities such as large enterprises (excluding government departments and public institutions), the required premiums to be paid by employers for three types of social insurances can be exempted by half, and the exemption period shall not exceed 3 months.

2.Since February 2020, Hubei Province can exempt from required premiums to be paid by employers for three types of social insurances for all insured entities (excluding government departments and public institutions), and the exemption period shall not exceed 5 months.

3. Enterprises with serious difficulties in production and operation due to the epidemic impact may apply for deferred payment of social insurance premiums. The deferred payment period shall not exceed 6 months in principle, and overdue fine will be exempted during the deferred payment period.

4. The provinces should determine the enterprise object who are reduced or exempted, strengthen information sharing between departments and not to increase the burden of enterprise affairs according to relevant regulations such as the Notice on Issued the Regulations for the Standardization of Medium and Small Enterprises (Ministry of Industry and Information Technology, United, Enterprise [2011] No. 300) by the Ministry of Industry and Information Technology, the Statistics Bureau, the Development and Reform Commission, and the Ministry of Finance, combined with the actual conditions, to determine the enterprise object who are reduced or exempted, strengthen information sharing between departments and not to increase the burden of enterprise affairs.

5. Ensure that the social insurance rights and interests of the insured persons are not affected. Enterprises shall fulfill the obligations of withholding and paying on behalf employees' individual contributions in accordance with the law, and the social security agency shall well record personal rights and interests.

5. < Guiding Opinions on the Phased Reduction of Employees Basic Medical Insurance Premiums > (2020-02-21)

1.Since February 2020, all provinces, autonomous regions, municipalities and Xinjiang Production and Construction Corps (hereinafter referred to as the provinces) can guide the overall planning area to reduce the required premiums to be paid by employers for medical insurances by half according to the fund operation situation and actual work needs, on the premise of ensuring the balance of fund in medium and long-term, and the reduction period shall not exceed 5 months.

2.The policy of deferred payment can be implemented continuously. In principle, the deferred payment period shall not exceed 6 months, and the overdue fine will be exempted during the deferred payment period.

3. The implementation of reduction and deferral cannot affect the insured’s enjoyment of the current benefits. The insured entities shall fulfill the obligations of withholding and paying on behalf employees’ individual contributions in accordance with the law. The medical insurance agency shall keep record of individual personal rights and interests to ensure employees’ rights and interests are not affected.

4. The overall planning areas that have implemented the phased reduction of the enterprise premium rate of the employee medical insurance, cannot simultaneously implement the half reduction measures.

6. < Notice on the Assurance Issue of Medical Staff and Related Staff Members Infected COVID-19 Pneumonia due to Performance of Work Duties > (2020-01-23)

In the prevention and treatment work for COVID-19 pneumonia, medical staff and related staff who have infected COVID-19 pneumonia or died of COVID-19 pneumonia infection due to performance of their work duties, shall be acknowledged as work-related injury and enjoy work-related injury insurance benefits according to law.

7. < Ten Provisions to Support Return to Work and Production by the General Administration of Market Supervision, the National Medical Products Administration, the State Intellectual Property Bureau> (2020-02-15)

Extension for Validity Period of Administrative License:

1. If the registration items of the business license need to be changed during the period of epidemic prevention and control but cannot be processed in time, it can be postponed processing within one month after the epidemic situation is over.
2. If the food production or operation permit expired, the validity period can be extended until the local epidemic situation is over.

Health and Safety

1. < Notice on Supporting the Enterprises that Participated in Liability Insurance of Safety Production Response to COVID-19> (2020-02-24)
The Notice on Supporting Enterprises that Participated in Liability Insurance of Safety Production Response to COVID-19 (hereinafter referred to as the Notice) has been gazetted by the General Office of the Ministry of Emergency Management, General Office of the Ministry of Finance and General Office of China Banking and Insurance Regulatory Commission on 24^th February 2020. It has been come into force since the date of promulgation. The key contents of Notice are as follows:

• For enterprises involved in liability insurance of safety production that are severely affected by the COVID-19, the insurance companies are encouraged to strengthen the connection with these enterprises, and appropriately extend the insurance periods, provide preferential or defer insurance premiums according to the situation of suspension and resumption of work and the damage of the enterprises.
• Further expand the applicable scope of prevention fee, the liability insurance of safety production of insurance company. According to the application of the participating company, the insurance company's prevention fee may use for epidemic prevention and control in priority. The time limit for expanding applicable scope of preventive fee should be extended to the end date of epidemic which determined by local epidemic prevention and control headquarters.
• For enterprises that need to resume work and production due to needs of epidemic prevention and control, the services of safety risk assessment and hidden danger check can be arranged in priority to reduce the safety production risks of enterprise.

2. < The Ministry of Emergency Management of PRC Issued Eight Measures to coordinate the Promotion of the Safety Precautions and resumption of Production> （2020-02-27）
The Ministry of Emergency Management of PRC Issued Eight Measures to coordinate the Promotion of the Safety Precautions and resumption of Production (hereinafter referred to as the Measures) has been gazette by the Ministry of Emergency Management of the People's Republic of China on 27^th February 2020 and has come into force on the date of promulgation. The key contents are as follows:

• Automatic extension of expired documents. For expired Enterprise Production Safety License, Qualification Certificate of Safety Evaluation and Inspection Agency, Safety Certificate of Principal Responsible Person of Enterprise, Safety Management Certificate, and Special Operation Personnel Safety Certificate, its validity period will be automatically extended to the end of epidemic prevention and control.
• Promote administrative approval online. For new construction, reconstruction, expansion, and production conversion projects that need to go through the formalities for safe production of "three simultaneous”, to optimize the approval process and implement fast online processing. On-site inspection can be postponed to after end of epidemic prevention and control.
• Simplify the process of returning to work and production. For the enterprises with good safety management and no production safety accidents since 2019, they shall resume production on their own under the premise of implement safety precautions. The principal responsible person of enterprise makes a safety commitment, and no longer reports to step by step and seals by on-site inspection.
• Relieve the burden for enterprises initiatively. Implement registration for safety inspection between supervisor and subordinate, and ensure mutual recognition of results to avoid repeated inspection.
• Promote safety production commitment system. Commitment system is implemented for the enterprises with better safety foundation and low safety risks, and no on-site inspection will be conducted during epidemic prevention and control.
• Carry out tailor-made services of expert safety guidance.
• Strengthen online safety education and training.
• Implement measures on liability insurance of safety production to ensure its benefits on enterprises.

Environment

1. < Notice on Carrying out the Work of Clean-up and Rectification for Stationary Pollution Source Pollutant Discharge Permission and 2020 Pollutant Discharge Permit Issuance and Registration> (2020-01-22)
The Notice on Carrying out the work of Clean-up and Rectification for Stationary Pollution Source Pollutant Discharge Permission and 2020 Pollutant Discharge Permit Issuance and Registration (hereinafter referred to as “Notice”) has been gazetted by the Ministry of Ecology and Environment on 22^nd January 2020. Notice requires:

• The task of clean-up and rectification for stationary pollution source pollutant discharge permission shall be completed by end of April 2020.
• The task of pollutant discharge permit issuance and registration shall be completed by end of September 2020.

2. < Notice on Providing Emergency Service Assurance for Environmental Impact Assessment During the Periods of COVID-19 Prevention and Control> (2020-02-06)
The Notice on Providing Emergency Service Assurance for Environmental Impact Assessment During the Periods of COVID-19 Prevention and Control (hereinafter referred to as “Notice”) has been gazetted by the General office of Ministry of Ecology and Environment on 6^th February 2020.
The Notice requires that emergency service assurance measure on environmental impact assessment shall be implemented for 3 construction projects determined by government including Medicine and Hygiene, Material production, Research and Trail.

• There (3) categories of temporary construction projects (including temporary construction, temporary reconstruction & expansion and switching) are waived for environmental impact assessment.
• If these mentioned three types of construction projects which continue to be used after end of the COVID-19, “informing and commitment mechanism” or post-submitting is allowed for environmental impact assessment.
• This notice shall be self-abolished by the end of COVID-19 outbreak accordingly.

China Minimum Wage Standard Update

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