Employees of many companies that have suspended operations in China should be receiving their paychecks as usual.
Following the extension of the Lunar New Year holiday because of the outbreak of coronavirus, China’s government has reinforced labor laws that require employees to be compensated while on vacation.
Local governments have also formulated their own announcements based on the law, according to Matthew Margulies, vice president of China operations at the US-China Business Council.
Employees who have been infected by the virus will still receive compensation, added Margulies. Additionally, employees that were required to work over the extended holiday will be paid extra.
Initially set to run to January 30, the Chinese government extended the holiday nationwide to February 2. While business has now resumed in certain areas like Beijing, others like Shanghai and Hubei province are still in lockdown for at least another week.
Starbucks and McDonald’s have closed all their Hubei stores indefinitely while Honda and Renault have extended the shutdown period in their Wuhan plants until February 13.
Other large companies, such as Peugeot and Toyota, have halted operations at their Chinese plants.
Webasto, an auto part company which confirmed last week that four of its employees based at its headquarters near Munich were affected by the virus, has closed its operation in Wuhan until February 14.
A spokesperson for the German company confirmed that workers would be fully paid during the closure.