Some businesses cut employees' salaries for the reason of working online and the epidemic. However, is cutting salary down eligible in accordance with the labor law? What should bosses pay attention to so as not to suffer losses from cutting salaries?
Can enterprises cut the wages of employees?
Firstly, the salary paid to employees is calculated based on the company's initial agreement with the employee. In addition, the company also relies on performance and work results to give the most appropriate number.
Thus, if employees work from home but still do accurate and complete work as well as ensuring efficiency and quality, the enterprise is not allowed to reduce wages.
However, whether to cut wages or not is also considered on many factors. In case the company is in plight, the unit needs to directly negotiate and solicit opinions from the employees.
Will employees have overtime pay when working online?
As a general rule, employees will have to work no more than 8 hours/day and no more than 48 hours/week. Thus, if the employee works overtime as specified, the enterprise is responsible for the overtime pay.
The overtime pay is specified in Article 98 of the Labor Code 2019. Specifically, if the employee works overtime on weekdays, the overtime pay will be calculated at 150% of the prescribed amount.
In case the employee has to work overtime on a day off such as Saturday and Sunday, the company will have to pay higher 200%/day than base pay.
If you go to work on holidays and New Year, the overtime pay will be calculated at 300% of base pay. This is an amount outside of the prescribed bonus.
Can I participate in social insurance if I work online?
This is an issue that many workers are concerned about. In fact, the salary is the basis for paying social insurance premiums. In the case of working online and receiving a salary, the employee will still be paid as usual.
In addition, according to regulations, employees with intermittent working time will be counted in 2 cases.
- Firstly, the number of days off is less than 13 days.
If the employee works from home but the working time is interrupted, the insurance calculation will be as follows. If the number of days off is less than 13 days, they still have to pay social insurance premiums as usual.
- Second, the number of days off from 14 days or more
In case the employee works and has the number of days off exceeding 14 days but still receives a salary, the employee will still pay social insurance premiums.
However, if the number of days off exceeds 14 days, without receiving salary, they do not have to pay social insurance.
What happens if the company pays late due to covid-19?
The law clearly stipulates that the employer has the responsibility and obligation to pay salary according to the original agreement of the two parties. In some specific situations, the enterprise can delay the payment of salary but it must not exceed the time limit of 30 days.
If the salary payment is delayed from 15 days or more, the employee can receive interest on late payment and the interest will be calculated according to the bank's interest rate.
In addition, enterprises are not allowed to stop paying wages to employees who stop working due to social distancing or quarantine. Considering the regulations, employers will have to pay employees the salary which is not less than the legal minimum pay.
In addition, if the time off is more than 14 days, the company/enterprise is required to reach an agreement with the employee before stopping salary payment. However, you still have to pay wages for the first 14 days.
Above is some information about salary and social insurance for employees during the time of Covid-19. If you have any questions, please comment below the article and Faro's payroll consultant will help you answer.