Review of Construction Environmental Capital Law (No. 29) | An "Salary"! The Provisions on Wage Deposit for Migrant Workers in the Field of Engineering Construction will come into effect today.
Published:
2021-11-03
Affected by the new coronary pneumonia epidemic and the uncertainty of the external environment, the recent hidden dangers of wage arrears in some industries have emerged, and the risk of upstream arrears in real estate development projects in some areas may increase the risk of downstream wage arrears. How to prevent the occurrence of wage arrears of migrant workers? The Ministry of human resources and social security, the Ministry of housing and urban rural development, the Ministry of transport and other departments issued the "provisions on wage deposit for migrant workers in the field of engineering construction", which will come into effect on November 1, and become an important safeguard measure to solve the problem of wage arrears in the field of construction. Wage deposit refers to the special fund set up by the general contractor in the field of engineering construction in the bank and stored in accordance with a certain proportion of the amount of the construction contract, which is specially used to pay the wages of migrant workers who provide labor for the contracted project. Since 2016, China has fully implemented the wage deposit system in the field of engineering construction, and various localities have successively established and implemented the system, and achieved good results. However, due to the lack of unified regulations at the national level, there are differences in account opening, storage subject, proportion, form and so on, which makes it difficult for enterprises to comply with the actual operation, and some of them have been increased layer by layer, increasing the financial pressure. The establishment of a security deposit system should not only safeguard the basic rights and interests of migrant workers, but also reduce the burden on enterprises, reduce the occupation of enterprise working capital, and straighten out the management system to form a unified national standard. How does the construction general contractor store the wage deposit? In the past, some places required the proportion of funds to be stored up to 5% or even higher. The new "Regulations" uniformly require that this proportion shall not be less than 1% and not more than 3% in principle. In response to the problem that some localities require construction units, construction general contracting units, subcontracting units, and labor subcontracting units to store wage deposits, the "Regulations" clarify that the main body of wage deposit storage is the general construction contractor, and other entities do not need to store. At the same time, wage deposits can be replaced by bank guarantees issued by banking financial institutions, and conditional areas can also explore the introduction of engineering guarantee company guarantees or engineering guarantee insurance. It is clearly stipulated that if there is no wage arrears for two consecutive years, the storage proportion of new projects shall be reduced by no less than 50%; if there is no wage arrears for three consecutive years and the real-name management of employment and the special account system for migrant workers' wages are implemented as required, the new projects can be exempted from the storage of wage deposit. Li Xinwang, director of the Labor Security Supervision Bureau of the Ministry of Human Resources and Social Security, said that the regulation of the storage ratio is to encourage law-abiding enterprises and punish untrustworthy subjects. In addition, if the construction contract amount is less than 3 million yuan, and the project undertaken by the general contractor for the construction of the project within one year before the signing of the construction contract has no wage arrears, each region may, in combination with the actual situation, exempt the project from storing wage deposit. Can the wage deposit be redirected? In the past, many places required companies to store wage deposits in special financial accounts set up by local regulators. Practice has proved that this model not only occupies the liquidity of enterprises, but also easily generates the risk of account violations. For this reason, in the future, the general construction contractor will independently choose the handling bank, and store the wage deposit in its own bank account, and make it clear that the principal and interest belong to the enterprise, and the enterprise can freely withdraw the interest at any time. When the project is completed, the supervision department receives the return application from the enterprise, and immediately releases the account supervision after 5 days of examination and no arrears of wages and 3 days of bank confirmation, and the funds are freely controlled by the enterprise. At the same time, the Ministry of Human Resources and Social Security has also established an inventory mechanism to ensure that the funds are returned in a timely and in place in response to the problem that individual enterprises forgot to apply for return in the past. How to use the wage deposit in the event of wage arrears? According to the "Regulations", when wages are in arrears, the human resources and social security department shall make an administrative decision to order the payment within a time limit or in advance. If the construction general contracting unit refuses to perform when it is due, the local human resources and social department may issue a "Notice of Payment of Migrant Workers' Wage Deposit" to the bank, and the bank will directly pay the corresponding amount of money from the wage deposit account to the unpaid migrant workers. Li Xinwang introduced, after the use of wage margin, the construction general contractor needs to make up the wage margin or open a new bank guarantee. If the wage deposit is not stored or made up in accordance with the regulations, the human resources and social security department and the engineering construction department of the relevant industry shall order it to make corrections within a time limit according to their duties; if it fails to make corrections within the time limit, it shall be ordered to stop the project and be fined; if the circumstances are serious, the construction unit shall be given penalties such as restricting the construction of new projects, lowering the qualification level and revoking the qualification certificate." In addition, within 2 years before the construction general contractor stores the wage deposit or submits the bank guarantee letter, if the wage is in arrears in the construction project in the wage deposit management area, the wage deposit storage ratio shall be appropriately increased by not less than 50%; due to arrears of migrant workers' wages are included in the "list of serious dishonest subjects", the increase rate shall not be less than 100. At the same time, it is stipulated that the wage deposit can only be used to pay off arrears of wages, not for other purposes, nor can it be sealed up, frozen or allocated without reason.
Affected by the new coronary pneumonia epidemic and the uncertainty of the external environment, the recent hidden dangers of wage arrears in some industries have emerged, and the risk of upstream arrears in real estate development projects in some areas may increase the risk of downstream wage arrears. How to prevent the occurrence of wage arrears of migrant workers?
The Ministry of human resources and social security, the Ministry of housing and urban rural development, the Ministry of transport and other departments issued the "provisions on wage deposit for migrant workers in the field of engineering construction", which will come into effect on November 1, and become an important safeguard measure to solve the problem of wage arrears in the field of construction.
Wage deposit refers to the special fund set up by the general contractor in the field of engineering construction in the bank and stored in accordance with a certain proportion of the amount of the construction contract, which is specially used to pay the wages of migrant workers who provide labor for the contracted project.
Since 2016, China has fully implemented the wage deposit system in the field of engineering construction, and various localities have successively established and implemented the system, and achieved good results. However, due to the lack of unified regulations at the national level, there are differences in account opening, storage subject, proportion, form and so on, which makes it difficult for enterprises to comply with the actual operation, and some of them have been increased layer by layer, increasing the financial pressure.The establishment of a security deposit system should not only safeguard the basic rights and interests of migrant workers, but also reduce the burden on enterprises, reduce the occupation of enterprise working capital, and straighten out the management system to form a unified national standard.
How does the construction general contractor store the wage deposit?
In the past, some places required the proportion of funds to be stored up to 5% or even higher.The new "Regulations" uniformly require that this proportion shall not be less than 1% and not more than 3% in principle.in view of the problem that some localities require that construction units, general construction contractors, subcontractors, and labor subcontractors all store wage deposits,The "Regulations" make it clear that the main body of wage deposit storage is the general construction contractor, and other subjects do not need to be stored again.At the same time, wage deposits can be replaced by bank guarantees issued by banking financial institutions, and conditional areas can also explore the introduction of engineering guarantee company guarantees or engineering guarantee insurance.
It is clearly stipulated that if there is no wage arrears for two consecutive years, the storage proportion of new projects shall be reduced by no less than 50%; if there is no wage arrears for three consecutive years and the real-name management of employment and the special account system for migrant workers' wages are implemented as required, the new projects can be exempted from the storage of wage deposit.
Li Xinwang, director of the Labor Security Supervision Bureau of the Ministry of Human Resources and Social Security, said that the regulation of the storage ratio is to encourage law-abiding enterprises and punish untrustworthy subjects. In addition, if the construction contract amount is less than 3 million yuan, and the project undertaken by the general contractor for the construction of the project within one year before the signing of the construction contract has no wage arrears, each region may, in combination with the actual situation, exempt the project from storing wage deposit.
Can the wage deposit be redirected?
In the past, many places required companies to store wage deposits in special financial accounts set up by local regulators. Practice has proved that this model not only occupies the liquidity of enterprises, but also easily generates the risk of account violations.For this reason, in the future, the general construction contractor will independently choose the handling bank, and store the wage deposit in its own bank account, and make it clear that the principal and interest belong to the enterprise, and the enterprise can freely withdraw the interest at any time.When the project is completed, the supervision department receives the return application from the enterprise, and immediately releases the account supervision after 5 days of examination and no arrears of wages and 3 days of bank confirmation, and the funds are freely controlled by the enterprise.
At the same time, the Ministry of Human Resources and Social Security has also established an inventory mechanism to ensure that the funds are returned in a timely and in place in response to the problem that individual enterprises forgot to apply for return in the past.
How to use the wage deposit in the event of wage arrears?
According to the regulations,In the event of wage arrears, the human resources and social security department shall, in accordance with the law, make an administrative decision to order the payment within a time limit or in advance.If the construction general contracting unit refuses to perform when it is due, the local human resources and social department may issue a "Notice of Payment of Migrant Workers' Wage Deposit" to the bank, and the bank will directly pay the corresponding amount of money from the wage deposit account to the unpaid migrant workers.
Li Xinwang introduced, after the use of wage margin, the construction general contractor needs to make up the wage margin or open a new bank guarantee. If the wage deposit is not stored or made up in accordance with the regulations, the human resources and social security department and the engineering construction department of the relevant industry shall order it to make corrections within a time limit according to their duties; if it fails to make corrections within the time limit, it shall be ordered to stop the project and be fined; if the circumstances are serious, the construction unit shall be given penalties such as restricting the construction of new projects, lowering the qualification level and revoking the qualification certificate."
In addition, within 2 years before the construction general contractor stores the wage deposit or submits the bank guarantee letter, if the wage is in arrears in the construction project in the wage deposit management area, the wage deposit storage ratio shall be appropriately increased by not less than 50%; due to arrears of migrant workers' wages are included in the "list of serious dishonest subjects", the increase rate shall not be less than 100.
At the same time, it is stipulated that the wage deposit can only be used to pay off arrears of wages, not for other purposes, nor can it be sealed up, frozen or allocated without reason.
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