China Law Library

China Medical Leave Rules

CBL’s Introduction

More than a company benefit, medical leave in China offers statutory protection against termination backed by mandatory wage, benefit, and severance obligations. Once an employee falls ill or is injured off the job, the contract freezes and wages or sick pay keep running for up to two years, and mismanaging medical leave or skipping disability evaluations can expose a business to government enforcement and expensive litigation. CBL’s translation of China’s medical leave rules outlines the service-based leave lengths, pay scales, and documentation that companies need to follow in clear American English to minimize legal risks when doing business in China.

This translation was done by the CBL team—if it is helpful to you, please take a moment to learn about our Chinese Legal Translation Services.

 

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Contents

Non-Work-Related Injury or Illness Employee Medical Leave Rules

Employee Non-Work-Related Illness or Injury Medical Leave Local Rules (Circular No. 16, 2002)
Improving Medical Leave Administration and Protecting Employee Rights During Medical Leave (Circular No. 83, 1995)

Non-Work-Related Injury or Illness Employee Medical Leave Rules

(Issued by Ministry of Labor Circular No. 479 [1994] on December 1, 1994; effective January 1, 1995)

Section 1 The purpose of these Procedures is to safeguard the legal rights of company employees who become ill or suffer non-work-related injuries, pursuant to §§ 26 and 29 of the Employment Contracts Act of the People’s Republic of China.

Section 2 Medical leave means the period an employee does not work due to illness or a non-work-related injury, during which the employer may not terminate the employment contract.

Section 3 Employees requiring time off for medical treatment due to illness or a non-work related injury are entitled to 3 to 24 months of medical leave, determined based on their total accumulated working time and years of service with their current employer:

(a) An employee with fewer than 10 total years of service is entitled to 3 months of medical leave if they have worked for their current employer for less than 5 years, or 6 months if they have 5 or more years of service with their current employer.

(b) An employee with more than 10 total years of service is entitled to 6 months of medical leave if they have worked for their current employer for less than 5 years, 9 months if they have 5 to 10 years, 12 months if they have 10 to 15 years; 18 months if they have 15 to 20 years; and 24 months if they have more than 20 years of service with their current employer.

Section 4 Medical leave is cumulative, and a 3-month medical leave is calculated over a 6-month period; 6-month medical leave is calculated over 12 months; 9-months leave is calculated over 15 months; 12-months leave is calculated over 18 months; 18-months leave is calculated over 24 months; and 24-months leave is calculated over 30 months.

Section 5 During medical leave, employees are entitled to wages, sick pay, and medical benefits pursuant to applicable law.

Section 6 At the end of medical treatment during the medical leave period, employees diagnosed by a doctor or medical institution with a non-work-related disability or a chronic or incurable illness who cannot continue working in their original position or in a suitable alternative position provided by the employer shall undergo a disability evaluation by the appropriate disability evaluation commission. The evaluation shall be completed under the Disability Evaluation Standards for Work-related Injuries and Occupational Illnesses. If an employee is found to have a Level 1 to 4 disability, they shall leave their position, terminate the employment relationship, file for retirement or disability retirement, and receive the corresponding benefits. If an employee is found to have a Level 5 to 10 disability, the employer may not terminate the employment contract during the medical leave period.

Section 7 At the end of the medical leave period, employees diagnosed by a doctor or medical institution with a non-work-related disability or a chronic or incurable illness shall undergo a disability evaluation by the appropriate disability evaluation commission under the Disability Evaluation Standards for Work-related Injuries and Occupational Illnesses. If an employee is found to have a Level 1 to 4 disability, they shall leave their position, terminate the employment relationship, file for retirement or disability retirement, and receive the corresponding benefits.

Section 8 If the employee remains unable to work at the end of medical leave and the employment contract is terminated, the employer shall provide severance pursuant to law.

Section 9 These Procedures shall take effect on January 1, 1995.

Shanghai Municipal Government Circular (2002) No. 16

To all district and county governments, government committees, offices, and agencies:

The Employee Non-Work-Related Illness or Injury Medical Leave Local Rules (During Employment Contract Term) are hereby issued effective immediately.

April 30, 2002

The following rules are issued to govern medical leave standards for employee non-work-related illness or injury during the term of an employment contract, to ensure the effective implementation of the Shanghai Employment Contract Ordinance, and to protect employee rights:

  1. Medical Leave means the period during which an employee does not work due to a non-work-related illness or injury, during which the employer may not terminate the employment contract.
  2. The length of an employee’s medical leave shall be determined based on the employee’s total years of service with the employer. An employee who has served for one year or less is entitled to three months of medical leave. The entitlement shall increase by one additional month for each full year of service up to a maximum of 24 months.
  3. An employee determined by the disability evaluation commission to be unfit to return to work and does not meet the criteria for retirement or termination may have their medical leave extended. The employer and employee may agree to extend the medical leave period, but the original medical leave and any extension must total at least 24 months.
  4. The medical leave period in any agreement listed below shall control if the agreement provides for a longer medical leave period than these Rules:

(a) a collective bargaining agreement that addresses medical leave;

(b) an employment contract that addresses medical leave;

(c) an employer policy that addresses medical leave.

  1. Medical leave for employment contracts entered into prior to the issuance of these Rules shall be governed by the laws and rules in effect at the time.
  2. These rules shall take effect on May 1, 2002.

Improving Medical Leave Administration and Protecting Employee Rights During Medical Leave

(Shanghai Labor and Social Security Administration Circular [1995] No. 83 September 29, 1995)

The purpose of this circular is to improve the administration of employee medical leave for non-work-related injuries and illnesses and to protect employee rights during medical leave pursuant to the China Employment Insurance Regulations:

  1. Establishing and Improving a Disability Evaluation System to Protect the Legal Rights of Companies and Employees. A business entity shall establish a disability evaluation commission (or team) to conduct regular disability evaluations of employees on long-term medical leave and determine whether employees should remain on leave, continue medical treatment, return to work, or be reassigned to suitable work pursuant to the Shanghai Employee Disability Evaluation Temporary Rules. Any complex or disputed disability evaluation matters must be promptly submitted to the district or county disability evaluation commission that has jurisdiction over the business entity.
  2. Improving and Complying with Leave and Return to Work Policies for Off-the-Job Employee Injuries and Illnesses. An employee who requires medical leave must provide a doctor’s note issued by a health care facility or a designated hospital and approved by the business entity’s management. An employee who requires long-term medical leave for an off-the-job injury and illness shall submit a doctor’s note issued by a health care facility or a designated hospital to the business entity’s disability evaluation commission (or team). The commission’s determination must be approved by the business entity, and the employee shall receive written notice of the decision.
  3. Medical leave for non-work-related illness or injury shall be calculated based on the number of days an employee is absent. Regular days off and public holidays that occur during a period of continuous leave shall be excluded from the calculation.
  4. A business entity shall pay an employee on medical leave of 6 months or less due to an off-the-job injury or illness wages at the following rates: 60% of the employee’s wages if the employee has less than 2 years of continuous service; 70% if the employee has between 2 and 4 years of continuous service; 80% if the employee has between 4 and 6 years of continuous service; 90% if the employee has between 6 and 8 years of continuous service; and 100% if the employee has 8 or more years of continuous service.

For medical leave due to an off-the-job illness or injury lasting more than 6 consecutive months, a business entity shall pay medical leave benefits as follows: 40% of the employee‘s wages if the employee has less than 1 year of continuous service; 50% if the employee has between 1 and 3 years of continuous service; and 60% if the employee has three or more years of continuous service. Employee wages shall be calculated at 70% of the employee’s wage rate when performing regular work.

  1. The employer shall pay the difference if wages paid to an employee on medical leave for an off-the-job illness or injury are less than 40% of the business entity’s average monthly wage. The business entity shall also pay the difference if that 40% is lower than the income support available to employed workers in this Municipality. Medical leave wages for an employee on medical leave for an off-the-job illness or injury that exceed the average wage in this Municipality for the previous year may be paid at average wage in this Municipality.
  2. A business entity may adopt policies covering medical leave for off-the-job illnesses or injuries based on the legislative intent of this Circular and actual business conditions. Any current company policy that provides more generous medical leave benefits for off-the-job illnesses or injuries than those required by this Circular shall remain valid.
  3. This Circular shall take effect on October 1, 1995.

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See CBL’s China Employment & Labor Law FAQ to learn more about how to succeed in China’s labor markets.

These articles were translated to American English from the following government publications:

企业职工患病或非因工负伤医疗期规定

https://www.mohrss.gov.cn/xxgk2020/gzk/gz/202112/t20211228_431556.html

上海市人民政府关于发布《关于本市劳动者在履行劳动合同期间患病或者非因工负伤的医疗期标准的规定》的通知

https://fgw.sh.gov.cn/ys-laogong-1.4.3.2/20240124/333b4616517c4171ac4a719ec86596ba.html

上海市劳动局关于加强企业职工疾病休假管理保障职工疾病休假期间生活的通知

https://rsj.sh.gov.cn/tgzfl_17732/20230901/t0035_1418018.html

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