1. Is it legal to only sign a labor contract and not buy social security?
It is not permissible to only sign a labor contract without buying social insurance, and it is illegal. According to Article 38 of the Labor Contract Law, an employee may terminate a labor contract if the employer falls under any of the following circumstances:
1) Failure to provide labor protection or working conditions in accordance with the provisions of the labor contract;
2) Failure to pay labor remuneration in full and in a timely manner;
3) Failure to pay social insurance premiums for workers in accordance with the law;
4) The rules and regulations of the employer violate the provisions of laws and regulations and harm the rights and interests of workers;
5) The labor contract is invalid due to the circumstances specified in the first paragraph of Article 26 of this Law;
6) Other circumstances under which the labor contract may be terminated by laws and administrative regulations.
2. Penalties for the company's failure to pay social security
1. Article 16 of the Provisions on the Administration of the Declaration and Payment of Social Insurance Premiums Article 16 If an employer falls under any of the following circumstances, the social insurance agency shall issue a notice of supplementary payment of social insurance premiums within 5 working days from the date of ascertaining the fact of non-payment, and order the employer to make up the payment within 5 working days after receiving the notice, and at the same time inform the employer that if it fails to pay within the time limit, it will be dealt with in accordance with the provisions of Articles 63 and 86 of the Social Insurance Law:
1) Failure to declare and pay social insurance premiums in accordance with regulations;
2) Failure to pay social insurance premiums in full and on time after declaration;
3) Underpayment of social insurance premiums due to concealment or omission of reporting the number of employees, payment base, and other matters.
2. Article 63 of the Social Insurance Law provides that if an employer fails to pay social insurance premiums on time and in full, the social insurance premium collection agency shall order it to pay or make up the amount within a time limit. If the employer fails to pay or make up the social insurance premiums within the time limit, the social insurance premium collection agency may inquire about its deposit account with banks and other financial institutionsThey may also apply to the relevant administrative departments at or above the county level to make a decision on the allocation of social insurance premiums, and notify their opening banks or other financial institutions in writing to allocate social insurance premiums. If the balance of the employer's account is less than the social insurance premiums to be paid, the social insurance premium collection agency may require the employer to provide a guarantee and sign an agreement on deferred payment. If the employer fails to pay the social insurance premiums in full and fails to provide a guarantee, the social insurance premium collection agency may apply to the people's court to seize, seal up or auction the property whose value is equivalent to the social insurance premiums to be paid, and use the auction proceeds to offset the social insurance premiums. Article 86 Where an employer fails to pay social insurance premiums in full and on time, the social insurance premium collection agency shall order it to pay or make up the amount within a time limit, and shall impose an additional late fee of 5/10,000 per day from the date of non-paymentIf the payment is still not made within the time limit, the relevant administrative department shall impose a fine of not less than one time but not more than three times the amount in arrears.
If the company agrees in the labor contract that it is not to buy social security for employees, such a clause is invalid, or if the agreement to buy social security is not fulfilled at all, it has violated the provisions of the "Labor Contract Law", and the employee can not only resign at that time, but also has an alternative method, which is to report to the local labor inspection department, and the company will face administrative penalties if it does not pay social security.