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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