Court Enforces Social Security Payment Contributions
China’s highest court has confirmed that companies and employees cannot opt out of social security insurance contributions, leading to a backlash on social media.
Under Article 19 of the Supreme People’s Court, Interpretation on Issues of Application of the Law in the Trial of Labor Dispute Cases (2) (最高人民法院关于审理劳动争议案件适用法律问题的解释 (二)), the Supreme People’s Court confirmed that courts must invalidate informal arrangements between companies and their employees to opt out of mandatory social security insurance payments, a commonplace, though illegal arrangement.