The company has many advantages in employing part-time workers, such as the employment agreement can be concluded orally, and there is no need to stipulate a probationary period, either party can notify the other party to terminate the employment at any time, and the company will not pay economic compensation to the employee after termination. Therefore, part-time employment can not only meet the needs of employers for flexible employment, but also save the employment costs of employers. Many companies will choose, but do companies need to pay social insurance contributions for part-time workers?
A classic case
In January 2020, Company A's factory needed to be repaired, and Company A signed a repair contract with Company B to contract the project to Company B. In February 2020, Company B hired workers including A to renovate and renovate Company A's factory, but Company B did not pay social insurance to Company A. On July 8, 2020, A was injured at work, and on July 9, he was hospitalized**, and was assessed as having a grade 10 disability.
Because Company B failed to pay work-related injury insurance to A, A could not enjoy work-related injury insurance benefits. As a result, A negotiated with Company B and demanded that the company pay him a one-time disability allowance, but Company B claimed that A was a part-time employee and the company did not need to pay social insurance for him, so it did not agree to A's request. In desperation, A filed for arbitration, which upheld A's request, and Company B filed a lawsuit.
The court held that Company B was unable to enjoy work-related injury benefits such as a one-time disability allowance due to a work-related injury that Company B should have paid but failed to pay in accordance with the law. Therefore, Company B should pay a one-time disability benefit to A.
Risk Warning
The company does not need to pay social insurance for old-age medical care when recruiting part-time workers, but it needs to pay work-related injury insurance. If the company fails to pay work-related injury insurance to part-time employees, the company will need to pay for the work-related injury benefits such as one-time disability allowance that the employee cannot enjoy after the work-related injury.
Corporate Governance Advice
How can companies properly hire part-time workers to avoid risks such as disability allowance compensation? We recommend:
1. There is no need to pay pension and medical insurance for part-time workers
Due to the particularity of part-time employment, that is, the average daily work of employees in the same company does not exceed four hours, the cumulative work of a week does not exceed 24 hours, labor contracts can be concluded with multiple companies, and both parties can terminate labor contracts at any time, so that the insurance of part-time workers is different from the "five insurances and one housing fund" of full-time workers. The company does not need to pay endowment insurance, medical insurance, unemployment insurance, maternity insurance and other insurance fees, and part-time workers can participate in basic endowment insurance and basic medical insurance in their personal capacity.
2. It is necessary to pay work-related injury insurance for part-time workers
As mentioned above, the company does not need to pay pension or medical insurance for employees, but the company needs to pay work-related injury insurance premiums for part-time workers. If the company fails to pay the work-related injury insurance, and the employee is unable to enjoy the work-related injury benefits such as a one-time disability allowance after the work-related injury, the company needs to pay for it, such as Company B in this case.
3. There is no need to pay economic compensation to part-time workers
Either party to a part-time employment may terminate the employment at any time by notifying the other party. If the employment is terminated, the employer shall not pay economic compensation to the employee. However, due to the irregularities in the working hours of some companies and the overtime employment situation, the part-time employment method will be invalid and recognized by the court as a full-time employment relationship, so the company needs to pay economic compensation when the two parties terminate the employment relationship, so the company should arrange the work of the employee according to the working hours stipulated by the law. For other forms of employment, the company can also read "Is Changing Employees to Outsourcing Workers Considered Termination of Labor Contracts?" Company Law Research Quality Author List [Labor Law Research 294].**Circle of friends, so that more entrepreneurs can avoid detours!
About the Author:
Li Hui
Senior Equity Partner
Beijing Yingke (Shanghai) Law Firm.
Member of the Management Committee of Pacific Links
Member of the Yingke Business Steering Committee
Deputy Director of the Legal Affairs Department of Pacific Century Company
Lecturer of "Legal Risk" of the Business School of Listed Companies
Expert lawyer of SME volunteer service of the Ministry of Industry and Information Technology
Intermediate M&A trader, carbon emission trader, independent director of listed companies, and secretary of the board of directors of listed companies.
Business Areas:Legal affairs such as company establishment and investment, corporate compliance system construction, equity incentives, equity structure design, mergers and acquisitions and restructuring, bankruptcy liquidation, commercial litigation and so on.
Ms. Li Hui focuses onCorporate legal counsel servicesHe has long been committed to corporate law and compliance research, and is familiar with corporate governance structure, internal operations and HR management affairs.
Served as a number of peopleEducation and training, dental care, logistics, manufacturing, media, leasing services, accommodation and catering, software and information technology, jewelry and ......Perennial legal counsel for enterprises in other industries.