JANE CAI

The mainland is cracking down on bosses who withhold wages by ruling they must pay an extra 50 to 100 per cent of the amount owed to workers if they miss a payment deadline set by the Ministry of Labour and Social Security.

The rule is part of a State Council labour regulation that will take effect on December 1. The rules also allow government authorities to inspect companies and private businesses as a way of protecting workers' rights in an oversupplied labour market.

State Council legal office director Cao Kangtai told Xinhua that some companies pursued their business interests at the expense of workers' rights, but that employees were hesitant to stand up for their rights when jobs were at a premium.

Mr Cao said the regulation was designed to maintain social stability by supporting existing labour regulations, detailing inspection procedures and punishing parties found breaking the rules.

Peking University labour law professor Ye Jingyi said the regulations were in part triggered by the emergence in recent years of the issue of unpaid migrant workers.

The China Federation of Trade Unions estimates 100 billion yuan in pay is owed to 100 million migrant workers.

The situation is particularly acute in the construction industry, where workers have frequently threatened to commit suicide because they have no money to take home for the Lunar New Year.

Under the regulation, companies that delay payments will have to pay compensation of between 50 to 100 per cent of the outstanding salary.

Bosses will also risk penalties if they overwork their staff, fail to arrange for health checks, fail to sign employment contracts and do not contribute to an employee social security fund.

The regulation calls on local labour authorities to set up inspection teams and make regular and unscheduled visits to companies, checking on how well employers implement labour laws and regulations.

Professor Ye joined discussions to frame the regulations and said local labour authorities did not have enough staff to carry out the checks.

But some staff would be trained to conduct the inspections.

"The [new rules are] expected to professionalise the inspection teams and make the checks more effective," she said.

Investigations had been hamstrung because workers were afraid of losing their "rice bowl".

"The inspection will check company records and files and social welfare arrangements for employees. Talks with employees will also be held," she said.

The effectiveness of the system would depend on how well inspectors were able to talk to workers.