(Yicai Global) July 22 -- No company in Shanghai may terminate employment contracts nor refuse to hire new staff who have previously suffered from an infectious disease such as Covid-19, according to a new resolution passed today by the Shanghai government as the city battles a big jump in unemployment.

In the face of unprecedented challenges, the local government, businesses and society must do their bit to implement the country’s and the city’s policies to stabilize employment, said Yan Zuqiang, director of the Social Construction Committee of the Shanghai Municipal People's Congress.

Affected by the recent outbreaks of Covid-19, the city’s jobless rate swelled to 12.5 percent in the second quarter.

More support is needed for those without jobs due to the flare-ups and to help fresh college graduates find work, he said. There has also been a big rise in disputes between employers and employees and it is necessary to formulate specific legal documents.

The Shanghai municipal government must continue to optimize residence permit, household registration and rental policies to attract and retain all types of talent to work and start businesses in the city, the document said.

Government departments can help those firms with a lot of staff to process administrative matters more easily through green channels and other approaches, and try to set up an exemption system for breach of trust caused by force majeure factors such as the pandemic.

And after preferential policies expire, these departments should look at introducing appropriate additional support measures according to the actual situation.

Editor: Kim Taylor