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an action brought for being unsatisfied with social insurance centers refusal to settle work-related injury insurance claims
[2020-08-20]

Court: Employer Shall Bear the Consequences for Failure to Pay Contributions As Required

Employers are obliged to pay work-related injury insurance contributions for their employees. If an employee suffers a work-related injury when he has not registered for work-related injury insurance or fails to pay the work-related injury insurance contributions in full as required, rendering him unable to apply for work-related injury insurance benefits, the relevant legal consequences shall be borne by the employer.

[Case Review]                

Ran is an employee of a plastic products company in Shanghai. On May 28, 2017, Ran was injured in an accident at work. On August 14 of the same year, he was identified to have suffered a level-7 work-related injury. The materials for applying for the work-related injury identification specify that the employment relationship between Ran and the plastic products company in Shanghai begun on February 15, 2017. On June 5, 2017, the employer of Ran, the plastic products company in Shanghai, handled social insurance registration for Ran and started to pay social insurance contributions. On November 9, 2017, the plastic products company in Shanghai made a supplementary payment for Ran's social insurance contributions of May 2017. However, the social insurance contributions from February to April 2017 were not paid. On December 5, 2017, Ran's social insurance relationship was transferred out of the company.

The plastic products company in Shanghai applied for work-related injury insurance benefits for two times. The municipal social insurance center refused to settle the claims on the grounds that the work-related injury identification department found based on the labor contract submitted by the company that the employment started on February 15, 2017, while the company handled the social insurance registration for Ran in May 2017 after the accident happened and failed to pay the social insurance contributions for the period from February to April 2017. The plastic products company in Shanghai was unsatisfied and brought an action to the court. The court of first instance rejected all the claims. So it appealed to Shanghai No. 3 Intermediate People's Court (hereinafter referred to as the ¡°Court¡±).

[Case Study]

Through trial, the Court held that Article 8 of the Provisions on the Administration of Declaration and Payment of Social Insurance Contributions stipulates that the employer shall apply for social insurance registrations, and declare and pay social insurance contributions for employees within 30 days from the employment. The municipal social insurance center found that the employment started on February 15, 2017, while the company handled the social insurance registration for Ran in May 2017 after the accident happened and failed to make up for the social insurance contributions of other months.

In accordance with the second paragraph of Article 58 of the Measures of Shanghai Municipality on the Implementation of Work-Related Injury Insurance, an employer which fails to handle work-related injury insurance registration or fails to pay work-related injury insurance contributions as required shall pay according to the items and standards of work-related injury benefits as stipulated in the Measures if any of its employees suffers work-related injury during the period the employer fails to handle work-related injury insurance registration or fails to pay work-related injury insurance contributions as required for him. The plastic product company in Shanghai made a supplementary payment for the social insurance for Ran after the work-related accident happened to get the work-related injury insurance benefits and didn¡¯t make up for the social insurance contributions of other months, which obviously goes against the purpose for establishing work-related injury insurance system and does not meet the statutory conditions for applying for work-related injury insurance benefits.

Accordingly, the Court dismissed the appeal according to the law and affirmed the first-instance judgment to dismiss all the plaintiff's claims.

[Relevant Laws]

1. Civil Procedure Law of the People's Republic of China

Article 69 Where the alleged administrative action has been taken under statutory procedures with conclusive evidence and correct application of laws and regulations, or the grounds for the plaintiff's application for the defendant to perform its statutory duties and responsibilities or make payment are unfounded, the people's court shall enter a judgment to dismiss the plaintiff's claims.

Article 79 Where the reconsideration agency and the administrative agency taking the original administrative action are co-defendants in a case, a people's court shall adjudicate concurrently on the reconsideration decision and the original administrative action.

Article 89 A people¡¯s court trying an appeal case shall:

(1) enter a judgment or ruling to dismiss the appeal and sustain the original judgment or ruling, if the original judgment or ruling is clear in fact finding and correct in application of laws and regulations;

 

(Written by Ding Xiaohua, Lu Hua, Zhang Wenjiao, Shanghai No. 3 Intermediate People¡¯s Court)

 


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