Shenzhen Bureau of Labor and Social Security has promulgated a notice listing 30 enterprises who have failed to pay their employees, with the total arrears reaching more than CNY12 million.
The labor administrative department of Shenzhen has paid more than CNY10 million through the back pay guarantee fund as wages to staff of the 30 companies. Since many legal representatives or persons in charge are in hiding or have absconded, the bureau has issued a notice instructing them to come to the local labor administrative departments for punishment in 30 days.
About two-thirds of the 30 companies are in Longgang District, and include the real estate investment, clothing, furniture, and restaurant sectors. The relevant departments will recover these advanced funds through legal channels following investigation, and the principals of these companies will be fined an additional 25% of the advanced funds.
Shenzhen will publish a back-pay company list quarterly. According to the Protection of Wages on Insolvency Ordinance, employers should set up a back pay guarantee fund no matter how many or how few employees they have.
