Housing and Urban-Rural Development Bureau: If the labor cost is insufficient to pay the wages, it shall be advanced by the general contracting unit

Source: Shaoguan Municipal Bureau of Housing and Urban-Rural Development, Chinese government website, etc

For more information, please pay attention to the WeChat public account "Construction Management"

Recently, the Housing and Construction Bureau of Shaoguan City, Guangdong Province, issued a notice to further strengthen the management of the real-name system for employment in order to implement the relevant provisions of the Regulations on Guaranteeing the Payment of Wages to Migrant Workers. explicit:

Job Requirements:

, do not enter the project site construction.
As soon as the competent departments at all levels find that the construction personnel in the site do not have real-name registration or do not have the attendance record of the system on the same day, they will immediately deduct points from the project construction enterprise and the project leader.
If the wage scale salary expenses required for the month of the progress of the project or before the end of the project progress shall be advanced by the general contracting unit of the construction, and the construction unit shall advance the unpaid project payment.
If there is no above-mentioned content in the signed contract, the agreement shall be made by signing an additional agreement.

Penalties:

For example, in the post-holiday resumption inspection, the project shall not resume work, and the resumption of work will be completed after the rectification is completed.
Various measures such as dynamic deduction of points, interviews, notification, administrative punishment, and recording of records of bad behavior will be adopted for management.

How is the Regulation on Guaranteeing the Payment of Wages to Migrant Workers stipulated?

On December 30, 2019, the State Council promulgated the Regulations on Guaranteeing the Payment of Wages to Migrant Workers, which came into effect on May 1.

Article 24 stipulates that the labor expense allocation period shall not exceed 1 month.

Article 28 stipulates that personnel who have not concluded a labor contract and registered their real names shall not enter the project site for construction.

The Regulations formally clarify the main responsibility and territorial responsibility of wage payment, especially the responsibility of construction units.

1. Arrears caused by insufficient government project funds:

The administrative department of human resources and social security shall report to the people's government at the same level for approval, and order the funds owed to be paid in full and within a time limit;
Where payment is not made within the time limit, interview the responsible persons of the directly responsible departments and relevant regulatory departments, and when necessary, make a notification, and interview the responsible persons of the local people's governments.
Where the circumstances are serious, the responsible persons of the local people's governments and their relevant departments, the directly responsible managers, and other directly responsible personnel are to be given sanctions in accordance with laws and regulations.
Where a government-invested project construction unit fails to approve the establishment of a project, expands the scale of construction without authorization, increases the investment estimate without authorization, fails to allocate project funds in a timely manner, and so on, resulting in arrears of wages to migrant workers, it shall interview the responsible person of the construction unit and serve as an important basis for its performance appraisal, salary distribution, appraisal of excellence, promotion of posts, and so forth.

2. 9 responsibilities of compaction construction units:

If the construction unit does not meet the financial arrangements required for construction, the construction project shall not start construction and shall not be issued a construction permit.
The funds required for government investment projects shall be implemented in accordance with the relevant provisions of the State, and the construction unit shall not advance funds for construction. Government projects, including state-owned enterprise projects, cannot be established without funds, and cannot be started without funds.
The construction unit shall provide the construction unit with a guarantee for the payment of the project payment.
The labor cost allocation period shall not exceed 1 month. When the construction unit and the general contractor conclude a written project construction contract in accordance with the law, they shall stipulate the measurement period of the project payment, the method of settlement of the progress of the project payment, and the labor cost allocation period, and agree on the labor cost in accordance with the requirements.
The construction unit shall promptly allocate the project funds, and promptly and fully allocate the labor costs to the special account for the wages of migrant workers, and strengthen the supervision of the full payment of the wages of migrant workers.
If the construction unit fails to allocate the project payment in a timely manner in accordance with the contract and causes arrears, the construction unit shall advance the arrears of the migrant workers' wages up to the unpaid project payment.
Where a dispute arises between the construction unit and the construction unit due to the quantity, quality, cost, etc. of the project, the labor costs in the project payment shall not be allocated because of the dispute. The general contractor of the construction shall not pay wages in accordance with the regulations due to disputes.
Where an engineering construction project violates laws and regulations such as land spatial planning and project construction, resulting in arrears in the payment of wages to migrant workers, the construction unit shall settle the matter.
Where construction units fail to provide guarantees for the payment of project funds in accordance with law or government investment projects are in arrears in project payments, resulting in arrears in payment of wages to migrant workers, local people's governments at the county level or above shall restrict their new projects, record them in their credit records, and include them in the national credit information system for publicity.

3. If the construction unit has any of the following circumstances, it shall be ordered to make corrections within a time limit; if it does not make corrections within the time limit, it shall be ordered to stop the project and shall be fined between 50,000 and 100,000 yuan:

The construction unit fails to provide a guarantee for the payment of the project funds in accordance with the law;
The construction unit fails to allocate the labor costs in the project funds to the special account for migrant workers' wages in full and in a timely manner as agreed;
The construction unit refuses to provide or cannot provide relevant information on the project construction contract and the special account for the wages of migrant workers.

4. Responsibilities of the general contractor of construction:

Open a special account for migrant workers' wages in accordance with regulations.
The deposit of salary deposits can be replaced by guarantees from financial institutions.
When concluding a written subcontract with a subcontracting unit in accordance with law, it shall stipulate the measurement period of the project payment and the method for settling the progress of the project payment.
According to the wage payment table prepared by the subcontracting unit, the wages are paid directly to the bank account of the migrant workers themselves through the special account for the wages of the migrant workers, and the subcontracting units are provided with wage vouchers.
In the engineering project department, labor management specialists are appointed to supervise and manage the labor employment of subcontracting units.
If the subcontracting results in arrears, the general contractor of the construction shall first settle the payment and then recover the compensation in accordance with law.
Where the subcontracting unit defaults on the wages of the migrant workers, the general contracting unit shall first settle the payment and then recover the compensation in accordance with law.
If the construction unit allows other units and individuals to contract construction projects in the name of the construction unit, resulting in arrears of wages to migrant workers, the construction unit shall pay them off.
Set up notice boards for rights protection information in a conspicuous position at the construction site.
If there is a dispute with the construction unit over the quantity, quality, cost, etc. of the project, it is necessary to pay wages in accordance with the regulations.
Establish a labor management ledger and keep it for at least 3 years after the completion of the project and the full settlement of wages.
If the project is completed and the wages of the migrant workers are not owed, the general contracting unit may apply for cancellation of the special account for the wages of the migrant workers 30 days after the announcement of the construction general contracting unit, and the balance in the account shall belong to the general contracting unit of the construction.

5. If the general contracting unit of construction has any of the following circumstances, it shall be ordered to make corrections within a time limit; if it does not make corrections within the time limit, it shall be ordered to stop the project and shall be fined between 50,000 yuan and 100,000 yuan; if the circumstances are serious, the construction unit shall be given penalties such as restricting the undertaking of new projects, lowering the qualification level, and revoking the qualification certificate:

The general contractor fails to open or use a special account for the wages of migrant workers in accordance with the regulations;
The general contractor fails to store the wage deposit in accordance with the regulations or fails to provide a letter of guarantee from a financial institution;
The general contracting unit and subcontracting unit of the construction have not implemented the real-name system for labor and employment management.

6. Personnel who have not concluded a labor contract and registered with a real name shall not enter the project site for construction.

7. If there is a dispute between a migrant worker and an employer over the arrears of wages, the employer shall provide the labor contract, the register of employees, the wage payment account and the list and other materials kept by the migrant worker in accordance with the law; if it is not provided, it shall bear the adverse consequences in accordance with the law.

8. The Regulations shall come into force on 1 May 2020.

Related reading: Accountability for government project arrears! Compaction construction unit 9 major responsibilities! The State Council promulgated the Regulations on Guaranteeing the Payment of Wages to Migrant Workers

Labor costs are clear, how to protect the funds of small and medium-sized enterprises?

On July 5, 2020, the State Council promulgated Order No. 728 "Regulations on Guaranteeing the Payment of Payments to Small and Medium-sized Enterprises", which came into effect on September 1, 2020. In order to ensure the timely payment of arrears of smes, the Regulations provide:

Organs and public institutions purchasing goods, projects, or services from small and medium-sized enterprises shall pay within 30 days from the date of delivery of the goods, projects, or services; if otherwise agreed in the contract, the payment term shall not exceed 60 days at the longest.
Where government organs, public institutions and large enterprises delay in paying small and medium-sized enterprises, they shall pay overdue interest. If the two parties have agreed on the interest rate of overdue interest, the agreed interest rate shall not be lower than the quoted interest rate of the 1-year loan market at the time of the conclusion of the contract; if no agreement is made, the overdue interest shall be paid at the daily interest rate of 5/10,000.
Where construction units are required to advance funds for government investment projects, they will be held accountable for their organs and institutions.
The payment of small and medium-sized enterprises shall not be refused or delayed on the grounds that the legal representative or the main responsible person has changed, the internal payment process has been performed, or the payment of the SME shall not be refused or delayed under the pretext of waiting for the approval of the completion acceptance or the audit of the final accounts without the provisions of the contract.
Where non-cash payment methods such as commercial bills of exchange are used to pay for small and medium-sized enterprises, a clear and reasonable agreement shall be made in the contract, and the small and medium-sized enterprises shall not be forced to accept non-cash payment methods such as commercial bills of exchange, and non-cash payment methods such as commercial bills of exchange shall not be used to extend the payment term in disguise.
It shall not be mandatory to use the audit results of the auditing body as the basis for settlement, except as otherwise agreed in the contract or otherwise provided by laws or administrative regulations.
The security deposit cannot be limited to cash. Where small and medium-sized enterprises provide guarantees with a letter of guarantee from a financial institution, organs, public institutions and large enterprises shall accept it.
When an SME concludes a contract with an organ, public institution or large enterprise, it shall take the initiative to inform it that it belongs to the SME. Where there is a dispute over the type of scale of small and medium-sized enterprises, it may apply for recognition to the department responsible for the comprehensive management of the promotion of small and medium-sized enterprises at the local people's government at or above the county level where the party claiming to be the small and medium-sized enterprise is located.
Relevant industries, associations, and chambers of commerce shall prohibit large enterprises in their respective industries from taking advantage of their dominant positions to refuse or delay the payment of small and medium-sized enterprises.
Organs, public institutions and large enterprises shall not require small and medium-sized enterprises to accept unreasonable payment terms, methods, conditions, liability for breach of contract and other transaction conditions, and must not default on the payment of goods, projects and services owed to small and medium-sized enterprises.
The use of financial funds to purchase goods, projects and services from small and medium-sized enterprises shall be carried out in strict accordance with the approved budget, and procurement shall not be carried out without budget or beyond budget.
Organs and public institutions shall, before March 31 of each year, disclose information such as the number and amount of contracts overdue and unpaid to small and medium-sized enterprises in the previous year through websites, newspapers and periodicals, and other methods that are convenient for the public to know.

Related reading: Heavy punch to cure arrears! Just now the State Council issued the "Regulations on Guaranteeing the Payment of Small and Medium-sized Enterprises", which came into effect on September 1!