Supreme Court: Any Agreement to "Not Pay Social Insurance" is Invalid, and Employers Must Provide Economic Compensation

Grontology August 1 | The Supreme People's Court published the Explanation on the Application of Laws in Labor Dispute Cases (II), which will take effect from September 1st this year. Regardless of whether both parties negotiate or the employee agrees to "not pay social insurance," any such agreement is invalid. Explanation II clarifies the legal consequences of employers and employees agreeing not to pay social insurance premiums. If an employer and employee agree not to pay social insurance premiums, or if an employee promises not to pay social insurance premiums to an employer, this agreement or promise is null and void. An employee who terminates their employment contract with an employer due to the employer's failure to pay social insurance premiums as required by law and demands economic compensation from the employer will be supported by the people's court in accordance with the law.