China: Salary Payment Issues During COVID-19 Lockdown In China – Seyfarth Shaw LLP

To fight against a new wave of the Omicron-dominated pandemic in Shanghai, the Chinese government imposed a two-month full lockdown in the city beginning at the end of March 2022, confining around 25 million residents to their homes. Under the Chinese government’s zero-COVID policy, the full lockdown has led to challenges not only for residents, but also for businesses in China, especially those with operations that do not lend themselves well to remote work. Employers encountered significant difficulties when workplaces and factories were quickly closed for months, which led to some exploring reductions to employee salaries and deferred payments. Is…