Northern China, home to the economic powerhouses of Beijing and Tianjin, is in the grip of a record-breaking heatwave. As the mercury pushes past previous records, peaking at a scorching 41.8 C (107 F), understanding and adhering to China’s labour laws becomes crucial for businesses operating in these extreme conditions.
Employers in China are required to follow specific heatwave policies. Non-compliance may result in potential employee claims against your business.
Different regions of China impose varying requirements for employers to subsidize their workforce amid high temperatures. For instance, Tianjin mandates a daily heat subsidy of 41 yuan ($5.65) for employees, while Guangzhou requires a monthly 300 yuan. If you’re grappling with understanding business regulations in China, particularly in your operation area, we’re here to help!
For this deep dive, we will focus on heat-related social compliance obligations in Tianjin. Although your obligations will fluctuate across different locations, Tianjin provides a solid representation of the general approach.
So, let’s dive right in. Tianjin enforces two crucial heat-related policies that your business can’t afford to ignore: the High-Temperature Subsidy, which only applies to certain employees, and the Heatstroke Prevention Subsidy, which applies to all employees without exception. We’ll unpack these policies one by one to give you a clear understanding of how they impact your operations.
High-Temperature Subsidy
Employers are obligated to provide a high-temperature subsidy in two scenarios:
- Employees are working outdoors in temperatures exceeding 35 C.
- Indoor temperatures climb beyond 35 C, and efforts to keep it under 33 C prove unsuccessful.
Implementation
- Amount: The subsidy amounts to 12% of the average daily salary in Tianjin from the previous year (2022). The authorities are yet to announce the exact figure for the current year, so you can refer to last year’s amount (41 yuan per day) for now.
- Calculation: The subsidy can accrue on an hourly basis, capped at 8 hours per day. However, if you lack sufficient evidence to support hourly calculation, the authorities will deem it a whole day.
- Payment: You should disburse the subsidy monthly, correct to one decimal place, and in cash.
- Temperature data: Workplace temperature records should align with the data from the municipal weather station, and workplaces must maintain these temperature records for a minimum of two years to facilitate possible inspections. Therefore, installing a reliable thermostat could be a worthwhile investment to keep you on the right side of compliance.
If your China team operates out of Tianjin, we strongly advise administering this subsidy each month. Should you not include it in this month’s remuneration, ensure you notify your employees and secure their consent.
Heatstroke Prevention Subsidy
Alongside the High-Temperature Subsidy, Tianjin, like many other municipalities and provinces across China, enforces additional regulations during the summer. Notably, employers in Tianjin are required to offer a Heatstroke Prevention Subsidy.
In Tianjin, the high-temperature subsidy is paid every summer from June through September, irrespective of the temperature.
The Heatstroke Prevention Subsidy in Tianjin is compulsory and applies to all employees.
This subsidy is 3% of the previous year’s average monthly salary in Tianjin. You can disburse it to your employees either monthly from June through September, or in a one-time lump sum payment. The subsidy amount was 224.3 yuan per month last year; however, the final figure for this summer is still awaiting confirmation from local authorities.
If you choose to pay the subsidy this month, any remaining balance can be made up in the following month once the authorities announce the subsidy amount for this year. Alternatively, if you prefer to pay it as a lump sum in September, it is important to inform your workforce about your plan well in advance.
More Than Just Subsidies
Beyond the intricacies of subsidies, it’s crucial to prioritize thoughtful operational strategies amidst a heatwave. Dispatching your team members to factories without adequate provisions to withstand the heat isn’t just a health risk — it could land you in hot water for violating social compliance norms.
The China Desk – Your Solution in Sweltering Heat
Successfully navigating these policies amid a heatwave can be a steep climb, but The China Desk is here to lighten your load. We are more than just a service – we are your ally in not only hiring the right team in China but also in understanding and adhering to local regulations, ensuring the safety and satisfaction of your employees.
Contact us today to learn how we can take the heat off your business during China’s heatwave. Stay informed, stay compliant, and most importantly, keep cool with The China Desk.
