Supreme People's Court   Ministry of Human Resources and Social Security

China   Banking   and   Insurance   Regulatory   Commission

Notice on Doing a Good Job in Preventing the Special Account Funds and Wage Security Deposit for Migrant Workers' Wages from Being Sealed up, Frozen or Appropriated

Ministry of Human Resources and Social Security [2020] No. 93

To the Higher People's Courts, Departments (Bureaus) of Human Resources and Social Security of all provinces, autonomous regions and municipalities directly under the Central Government, the Production and Construction Corps Branch of the Higher People's Court of Xinjiang Uygur Autonomous Region, the Bureau of Human Resources and Social Security of Xinjiang Production and Construction Corps, all Banking and Insurance Regulatory Bureaus, all policy banks, large banks, joint-stock banks, and foreign-funded banks:

Article 33 of the Regulations on Guaranteeing the Payment of Wages to Migrant Workers (hereinafter referred to as the Regulations) stipulates: “Except as otherwise provided by law, the funds in the special account for migrant workers' wages and the wage security deposit shall not be sealed up, frozen or appropriated for reasons other than the payment of wages to migrant workers who provide labor for the project.” In order to further implement the requirements of the Regulations, safeguard the right to remuneration of migrant workers, and ensure that the special account funds and wage security deposit for migrant workers' wages are specifically used for the payment of wages to migrant workers who provide labor for the project, the relevant work is hereby notified as follows:

I. The special account funds for migrant workers' wages and the wage security deposit referred to in this Notice refer to the funds stored in the special account for migrant workers' wages and the wage security deposit account (hereinafter referred to as the two types of accounts) opened by relevant entities in banking financial institutions, which are specifically used for the payment of wages to migrant workers who provide labor for the project.

II. When sealing up, freezing or appropriating the bank account funds of relevant entities, the people's court shall strictly review the account type, Unless otherwise specifically provided by law, The two types of account funds shall not be sealed up, frozen or appropriated for reasons other than the payment of wages to migrant workers who provide labor for the project.

III. For the funds in the special account for migrant workers' wages that obviously exceed the amount agreed in the project construction contract and obviously exceed the total labor costs required to fully pay the wages of migrant workers for the project, and for the funds in the wage security deposit account that exceed the portion of the funds storage regulations announced by the competent department of wage security deposit, the people's court may take freezing or appropriation measures according to law after confirmation. If the parties concerned and relevant entities or individuals use the two types of accounts to evade or evade enforcement, they shall bear the responsibility according to law.

IV. The people's court may take pre-freezing measures on the two types of accounts according to law. After the project is completed and there are no arrears in migrant workers' wages, and the regulatory department lifts the supervision of the two types of accounts according to regulations, the pre-freezing measures will automatically be converted into freezing measures, and the remaining funds may be appropriated according to law.

  V. If the parties concerned or interested parties (including the regulatory departments of the two types of accounts) believe that the sealing up, freezing or appropriation behavior of the people's court is illegal, or if the banking financial institutions believe that the people's court's request for their assistance in enforcement is illegal, they may raise an objection to the people's court according to law, and the people's court shall handle it according to law. If the regulatory department of the two types of accounts raises an objection, the funds in the two types of accounts shall not be sealed up, frozen or appropriated during the objection review period.

VI. Banking financial institutions shall standardize the opening of the two types of accounts, carefully verify the nature of the accounts with the account opening entities, make special identification of the two types of accounts in the business system, and make overall restrictions on sealing up, freezing or appropriation settings in the relevant online inquiry and control platform, electronic special line information transmission system, etc., and properly handle sealing up, Freezing or appropriation and other matters to ensure the safety of funds in the two types of accounts.

VII. When a banking financial institution receives an instruction from the people's court or other competent authority to seal up, freeze or appropriate the funds in the two types of accounts, it shall, through manual or system methods, prompt the people's court or other competent authority of the nature of the account and the provisions of Article 33 of the Regulations, and at the same time inform the regulatory department of the two types of accounts of the relevant situation. The regulatory department of the two types of accounts has the right to raise an objection.

VIII. When a banking financial institution encounters major abnormal situations such as the funds in the two types of accounts being sealed up, frozen or appropriated by the competent authority due to improper operation, it shall promptly report to the local regulatory department of the two types of accounts.

IX. Relevant departments in various regions shall improve the working mechanism, strengthen communication and coordination, and prevent the funds in the two types of accounts from being illegally sealed up, frozen or appropriated.

X. Relevant departments Relevant personnel who abuse their powers, neglect their duties, or engage in malpractice for personal gain in the process of sealing up, freezing or appropriating the funds in the two types of accounts shall be given disciplinary action in accordance with laws and regulations.

XI. This Notice shall come into force on December 25, 2020. Banking financial institutions shall complete the adjustment of the above matters within 2 months from the date of implementation.

                                                                                                                      Supreme People's Court

                                                                                                Ministry of Human Resources and Social Security

                                                                                                China Banking and Insurance Regulatory Commission

                                                                                                December 25, 2020