Laws & Regulations

Decision of Shanghai Municipal People's Government on Amending the Provisions of Shanghai Municipality on Raising Enterprises' Back-pay Security Funds and Advancing Payment

The Municipal People's Government has decided to amend as follows the Provisions of Shanghai Municipality on Raising Enterprises'  Back-pay Security Funds and Advancing Payment:

I. Article 6 of the Provisions shall be amended as follows:

Shanghai Municipal Human Resources and Social Security Bureau (hereinafter referred to as the "Municipal HRASS Bureau") shall be the competent administrative department of this Municipality responsible for back-pay security, and shall perform the following duties:

1. formulate a management system for the back-pay security funds;

2. examine and decide on advancing back pay from the funds that exceeds the cap;

3. seek from the defaulting enterprises reimbursements of the back pay it has decided to advance to affected workers from the funds;

4. direct and supervise the district/county human resources and social security bureaus (hereinafter referred to as "D/C HRASS Bureaus") in their work regarding back-pay security; and     

5. perform other duties which it ought to perform under these Provisions.

The D/C HRASS Bureaus shall be responsible for work regarding back-pay security within their respective jurisdictions, and shall perform the following duties:

1. accept and file applications from their respective jurisdictions for advancingback pay from the security funds, as well as those applications the Municipal HRASS Bureau has earmarked for them to handle and advance back pay;

2. examine and decide on the back pay to be advanced from the funds that does not exceed the cap;

3. seek from the defaulting enterprises reimbursements of back pay they have advanced to affected workers from the security funds; and

4. perform other duties which they ought to perform under these Provisions.

The "cap" in Clauses 1 and 2 hereunder shall be decided by the Municipal HRASS Bureau.

II. Article 7 shall be amended as follows:

The revenues and expenses of the back-pay security funds shall be managed separately. Special accounts shall be opened for such purpose, and the money in such accounts shall be used only for the purpose of providing back-pay security.

The back-pay security funds allocated by the Municipal HRASS Bureau to the D/C HRASS Bureaus shall be deposited to the special accounts of the D/C HRASS Bureaus, each of which shall be subject to independent accounting. The specific rules for managing such accounts shall be formulated by the Municipal HRASS Bureau together with the municipal finance bureau.

The expenditures necessary for work relating to back-pay security shall be included in the budget of the government at the same level.

III. Article 12 shall be amended as follows:

The Municipal HRASS Bureau may propose from time to time to adjust the rates of fee payments or suspend fee payments into the back-pay security funds in the light of the revenues and expenses of such funds. Such proposals shall be implemented upon approval by the Municipal People's Government and shall be made known to the general public.

IV. Article 16 shall be amended as follows:

Workers who seek advancing back pay from the funds shall submit their applications to the relevant D/C HRASS Bureau within 30 days upon obtaining evidentiary materials in support of the fact of back pay.

If a worker can not submit his or her application in time due to reasons unattributable to himself or herself, the D/C HRASS Bureau may appropriately extend the period of application.

V. Clause 1 of Article 17 shall be amended as follows:

Upon receiving an application, the D/C HRASS Bureau shall promptly examine it, and shall decide within 10 working days whether or not to advance payments from the funds. Applications for payments to be advanced in excess of the cap shall be submitted to the Municipal HRASS Bureau for examination and approval.

VI. The following shall be added as Article 29:

Shanghai Municipal Joint Committee for Labor Relation Coordination may, on a regular basis, research on and coordinate in matters regarding back-pay security.

VII. The following shall be added as Article 30:

The human resources and social security administrative department may commend those enterprises that have made outstanding achievements in protecting workers'  rights and interests and promoting harmony in labor relations.

VIII. Miscellaneous Language Revisions:

1. The "municipal labor security bureau"  in Articles 9, 10, 25 and 28 shall be changed into "Municipal HRASS Bureau";

2. The "labor security administrative departments"  in Articles 13 and 24, and the "municipal labor security bureau"  in Clause 2 of Article 17, Article 18, Clause 1 of Article 20, and Articles 22, 23, and 26 shall be changed into the "human resources and social security administrative department";

3. The "municipal labor security bureau" in Article 14 shall be deleted.

In addition to the above, the sequence of the articles shall be adjusted in accordance with this Decision.

This Decision shall be effective as of the date of promulgation. The Provisions of Shanghai Municipality on Raising Enterprises'  Back-pay Security Funds and Advancing Payment shall be re-promulgated after it is properly amended and adjusted in accordance with this Decision.

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