Recently, due to factors such as economic slowdown and a decrease in orders, some companies in mainland China are facing increased operational pressures. In order to control costs, some companies have begun implementing shortened work time systems such as “work four days, rest three days,” while simultaneously reducing employee salaries, leading to labor disputes. Experts suggest that if a company ties the “work four days, rest three days” system to salaries, they should fully inform and obtain consent from the workers.
A netizen recently posted, stating: “The company has implemented ‘work four days, rest three days’ since July, but they want to deduct the basic salary, about 200 yuan per day.” The netizen mentioned that they used to take home around 5800 yuan, but now estimate they will only have around 5000 yuan.
According to reports from “Workers’ Daily,” a manager at a private company mentioned that compared to weekends off, implementing “work four days, rest three days” directly reduces the company’s office and labor costs. Therefore, when the company’s performance is not good, some companies adjust work schedules and reduce shifts as a way to lower operational costs.
While the “work four days, rest three days” system was initially thought to help improve the work-life balance of employees, some companies have linked it to salary reductions in reality. Many netizens on social media platforms have criticized companies implementing the “work four days, rest three days” system for tying it with salary cuts, and despite the change in work hours, the amount of work employees need to complete each month remains unchanged.
“Due to poor performance, the company notified us of the implementation of ‘work four days, rest three days,’ while deducting the corresponding salary,” “After ‘work four days, rest three days,’ the salary was reduced by 20%,” “After ‘work four days, rest three days,’ the salary was reduced by 1000 yuan. If not accepted, resignation is the only option”…
Is it legally justified for a company to reduce employee salaries while implementing the “work four days, rest three days” system?
Zhang Yeyang, practicing lawyer at Beijing Strategy Law Firm, stated, “An employee’s salary is a core interest, and without the consent of employees, companies have no right to reduce their salaries on the grounds of shortening work hours.”
Zhang Yeyang further mentioned that if a company unilaterally changes the terms, they need to inform the employees, and employees have the right to reject the company’s arrangements and demand to continue fulfilling the labor contract as originally agreed upon.
Ban Xiaohui, associate professor at the Law School of Wuhan University, said, “Under the standard working hour system, if employees are scheduled to work on designated rest days, they should be compensated with compensatory leave; if unable to take compensatory leave, overtime pay should be provided at no less than 200% of the daily or hourly wage standards, or 300% on statutory holidays.”
Furthermore, the social insurance payment base and housing provident fund deposit base are usually determined based on the monthly average salary of the previous year, combined with the upper and lower limits specified annually at a local level. If work hours are shortened but salaries remain unchanged, the base should also remain the same; if salaries are adjusted through legal negotiations, the base should be determined based on the actual monthly average wage according to local annual declaration rules, without arbitrarily lowering it due to working one less day.