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Employment Guaranteed Phase II | 125,000 employers receive a subsidy of 12%, the first phase of breach of promise requires a return of 190 million

2020-10-07T13:24:07.248Z


A government spokesman said today (7th) that the Employment Guarantee Program granted a total of about 125,000 employers to the second phase of wage subsidies, involving a total of 31.8 billion, and promising about 1.33 million salaried employees. However, 12% of them, or 15,400 employers, violated the regulations in the first period, including failing to use all the subsidies for salary payments in June or July, or actually receiving fewer employees than promised. The government retrieved from these employers the amount of subsidy that was not used to pay wages, or related fines, involving an amount of about 190 million yuan, which is equivalent to 0.6% of the three wage subsidies in the second phase.


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Written by: Huang Yongyu

2020-10-07 21:06

Last update date: 2020-10-07 21:06

A government spokesman said today (7th) that the Employment Guarantee Program granted a total of about 125,000 employers to the second phase of wage subsidies, involving a total of 31.8 billion, and promising about 1.33 million salaried employees.

However, 12% of them, or 15,400 employers, violated the regulations in the first period, including failing to use all the subsidies for salary payments in June or July, or actually receiving fewer employees than promised.

The government retrieved from these employers the amount of subsidy that was not used to pay wages, or related fines, involving an amount of about 190 million yuan, which is equivalent to 0.6% of the three wage subsidies in the second phase.

A government spokesman said today that the secretariat of the "Ensure Employment" program has announced on the "Ensure Employment" website the list of the first batch of employers to receive the second installment of wage subsidies.

The spokesman said that the list involved 19,200 employers, involving about 6.8 billion yuan in wage subsidies, covering the period from September to November this year, and promising more than 270,000 salaried employees.



In addition, the Secretariat has notified the third batch of more than 22,000 employers who have successfully applied for the second phase of the "Ensure Employment" program, involving about 13.1 billion yuan in wage subsidies and nearly 560,000 promised salaried employees. Applicants can log in " The "Ensure Employment" project enquires the website to check the application results.

If the applicant accepts the result, it must be confirmed through the inquiry webpage within two days from the issuance of the notice, so that the secretariat can arrange the payment of wage subsidies as soon as possible.



At present, the "Ensure Employment" plan has granted a total of about 125,000 employers a second phase of wage subsidies, involving a total of 31.8 billion yuan in wage subsidies, and promised about 1.33 million salaried employees.


However, of the approximately 125,000 employers approved for the second phase of wage subsidy, approximately 15,400 employers (12%) failed to fulfill one or two of the first phase of their commitments, that is, they did not pay in June or July. The full subsidy is used to pay employees' salaries, or the number of employees who were paid in the relevant month is less than the total number of employees in March this year.



The government added that about 95% of employers in violation of regulations, that is, 14,700 actually paid employees in June or July were less than their promised number, but 76% of them, that is, about 11,800 employers, only reduced by 1 to 2 employees.

The government needs to recover from these employers the amount of subsidy that was not used to pay wages and/or related fines. The amount involved is about 190 million yuan, which is equivalent to 0.6% of the second three batches of wage subsidies. Direct deduction for the second subsidy

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The secretariat also stated that it has processed nearly 80% of the employers’ applications for the second phase of the plan and continues to process the remaining approximately 36,000 applications.

In addition, the Secretariat has granted a total of $7,500 in one-off grants to approximately 8,100 eligible self-employed persons, involving approximately $61 million in grants.



The spokesperson reiterated that if the Secretariat believes that the employer who has been approved for the second phase of wage subsidy will reduce the number of employees of its company during the subsidy period, that is, from September to November this year, the extent of the reduction is huge, and the employer has failed to prove and agree If the Secretariat is satisfied that it intends to hire employees to replace the laid-off employees, or fails to provide a reasonable explanation, the government has the right to get back all or part of the wage subsidy paid in the second period.

The chairman of the Federation of Trade Unions, Huang Guo, urged the government to publish a list of employers who violated regulations.

(Profile picture)

The union urges the public to disclose the list



of

employers

who

violate the regulations.

Huang Guo, chairman of the Federation of Trade Unions, said that out of the second batch of subsidized employers, as many as 15,400 have violated their promises. The proportion is not low. He urges the government to increase transparency and publish the list of employers who violate the regulations. "Workers can know the return." He also believes that the plan involves tens of billions, and the government only recovers 190 million yuan. "The so-called penalties are in fact only the return amount," which lacks deterrence.



The director-general of the Trade Union Union Meng Zhaoda described the rate of violations as staggering. "There is one violation for every 10 employers." This reflects the loopholes in the plan itself and it will not benefit workers.

He pointed out that the government often emphasizes that it plans to rely on private inspections. "If it is collected and buried, workers will be asked to do some inspections? Workers have no right to know."

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