Chinese Law – Do companies have to continue paying employees who cannot work, and who also may not be terminated for their work-related injury?

While an employee is not working because they are receiving medical treatment for a work-related injury, a company is still bound to pay him or hers full salary.  Generally the maximum full-pay period is limited to 12 months, but if approved by the Local Labor Bureau, it may be extended for another 12 month period.

For the duration of full-pay periods, a company and/or the injured employees need to have the degree of the employee’s disability certified, in order to confirm whether and how much salary needs to be paid to such employees.

Currently in Shanghai, the Local Average Monthly Salary is 3,566 Yuan, and there is a 300% benefit cap, therefore the highest compensation would be 10,698 Yuan. The information here was provided by the local work-related injury insurance foundation.  “In an economy that is experiencing such rapid growth it is important for China’s development to have these types of law in place in order to protect the common worker,” comments Edward E. Lehman, Managing Director of Lehman, Lee & Xu.

Lehman, Lee & Xu is a prominent Chinese corporate law firm and trademark and patent agency with offices in Beijing, Shanghai, Shenzhen, Hong Kong, Macau, and Mongolia. The firm has also been recognized as one of the top full service as well as intellectual property firms in China by several international magazines. The law firm is managed by Mr. Edward Lehman, a leading expert on corporate law with 20 years of practice experience in Mainland China.

To learn more about us, please visit our website at

www.lehmanlaw.com

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