Wuhan to blacklist companies, individuals for defaulting on payments

To protect the legitimate interests of all employees and enhance the building of a social credit system, Wuhan city in Central China's Hubei province has decided to blacklist employers who fail to pay migrant workers, Wuhan Evening News reported on Wednesday.

According to the regulation, which took effect from Dec 1, enterprises and individuals who delay paying workers' wage of 10,000 yuan ($1,450) for more than six months will be placed on the blacklist; cases of employers who withhold the wages of over 10 workers with the cumulative amount of 50,000 yuan ($7,200) will be transferred to local police, and those responsible for defaults that trigger mass disturbance will also be put on the blacklist.

It is the first time that not just migrant workers, but all employees have been brought under the regulation.

Those on the blacklist will be made named through the official websites of the local government departments, and could face severe punishments such as limited access to government financial support, purchase and bidding - and could be barred from favorable tax policies.

If within a year of being blacklisted, all delayed wages are paid, and the mistake is not repeated, the restrictions can be removed. Those who repeat the mistake will be put on the blacklist for two years.

Once their names have been on the blacklist, their credibility will never be restored again.