If there is no money to pay salaries, can the company use products to offset wages?

Mondo Workplace Updated on 2024-03-01

Ms. Zhang works for a cosmetics company, and in recent years, her income has gradually decreased, and the company has not paid employees for three consecutive months. The boss of the company decided to close the company, and since there was no money to pay the salary, the boss decided to use the company's backlog of cosmetics to offset the wages of the employees.

So is it in line with the law for companies to use unsalable goods to deduct wages?

It is not legal, and the company infringes on the rights and interests of employees to obtain labor remuneration. According to the law, wages shall be paid to the worker on a monthly basis in the form of legal tender, and shall not be paid in kind or in lieu of currency.

In this case, although the company went bankrupt, it was still not possible to pay employees with cosmetics instead of money. If the boss insists on not paying wages, Ms. Zhang can apply to the labor arbitration commission for arbitration

The legal basis is as follows:

Labor Law of the People's Republic of China

Article 3 Workers shall enjoy the right to equal employment and choice of occupation, the right to receive remuneration for labor, the right to rest and vacation, the right to labor safety and health protection, the right to receive vocational skills training, the right to enjoy social insurance and welfare, the right to submit labor disputes for settlement, and other labor rights provided for by law. Workers shall complete labor tasks, improve professional skills, implement labor safety and health regulations, and abide by labor discipline and professional ethics.

Article 50. Wages shall be paid to the worker in monetary form on a monthly basis. Wages shall not be deducted or unjustifiably delayed.

Article 85.

In any of the following circumstances, the labor administrative department shall order the employer to pay labor remuneration, overtime pay or economic compensation within a time limit; If the labor remuneration is lower than the local minimum wage standard, the difference shall be paid; If the employer fails to pay within the time limit, the employer shall be ordered to pay additional compensation to the employee at the rate of not less than 50% but not more than 100% of the amount payable

1) Failing to pay the labor remuneration of the worker in full and in a timely manner in accordance with the provisions of the labor contract or the provisions of the state;

2) Paying wages to workers at a rate lower than the local minimum wage standard;

3) arranging overtime work without paying overtime pay;

4) Dissolving or terminating a labor contract without paying economic compensation to the worker in accordance with these Regulations.

Quan Ping reminded that unless the company and employees reach an agreement through consultation, no matter what the situation is, the company must pay the wages of workers in the form of money in accordance with the law, and no reason or excuse can be established.

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