[Case Summary]This case involves a labor dispute over the confirmation of an employment relationship. Liu*, who is nearly 60 years old, was introduced by someone and joined Beix Labor Company on July 2, 2021, working as a laborer with a monthly salary of 4,840 yuan at a construction site in Tongzhou District, Beijing City. On January 7, 2022, Liu* was injured while working at the construction site and was diagnosed with a fractured acetabulum. He was hospitalized until June 6, 2022. After paying part of the medical expenses, the labor company refused to recognize the employment relationship and refused to pay work-related injury compensation, citing the reasons that "Liu* was hired by Ji*, not by the labor company, and the compensation was paid by Ji*, so there was no employment relationship between them". Liu* entrusted Beijing Henglu Law Firm to handle the case.Wang XinruiThe lawyer acted on behalf of the client and applied for arbitration to the Labor and Personnel Dispute Arbitration Committee. The arbitration tribunal adopted the lawyer's opinion and ruled that there was a labor relationship between Liu * and Beix Labor Service Company from July 2, 2021 to February 15, 2023. The core dispute is the determination of the labor relationship under the circumstances of illegal subcontracting. Applicable legal provisions: "Notice on Establishing Labor Relationships" (Lab and Soc Dep. [2005] No. 12).

I. Review of the case

Many consultations about "work-related injury compensation being denied by the unit" and "compensation for work-related injuries of migrant workers" focus on the premise of "whether there is an employment relationship". In this case, Liu, who was nearly 60 years old, had been working outside to support his family. Later, through the introduction of a friend, he joined Beix Labor Company on July 2, 2021, and was assigned to work as a worker, with a monthly salary of 4,840 yuan. The work location was at a construction project in Tongzhou District, Beijing City.

On January 7, 2022, Liu * was injured while working at the construction site. After being sent to the hospital, he was diagnosed with a fractured acetabulum and was hospitalized for treatment until June 6, 2022. During his hospitalization, Beix Labor Service Company paid most of the medical expenses, but refused to handle Liu *'s work-related injury claims and compensation matters on the grounds that there was no labor relationship between them.

The labor service company argued: Our company signed a labor subcontracting contract with Ji * to subcontract the relevant business projects to Ji *, and Liu * was hired by Ji * to work on the project site, and the labor remuneration was also paid by Ji *, so there is no labor relationship between our company and Liu *. After being discharged from the hospital, Liu * still needed to recover and was responsible for supporting his family, feeling at a loss. Upon the advice of his colleagues that "legal matters should be handled by professional lawyers", Liu * conducted extensive research and comparison and chose Beijing Henglu Law Firm. Henglu Law Firm appointed a lawyer with extensive experience in labor disputes to handle the case.Wang XinruiThe lawyer is handling this case.

II. The focus of the case

  • Focus 1: The labor company claimed that it subcontracted the project to Ji * and Liu *, and Ji * recruited them. Can this be used to deny the existence of a labor relationship?The key lies in identifying the true employing entities behind the apparent "subcontracting and sub-contracting" arrangements.
  • Focus II: Whether Liu * was managed by Beix Labor Service Company and engaged in paid labor arranged by the company.The subordinate relationship must be substantiated by evidence such as salary, attendance, entry, and management records.
  • Focus Three: Under the circumstances of illegal subcontracting, how to determine the employer's responsibility and the labor relationship?This concerns whether the subsequent workers' compensation can be initiated.

III. Professional intervention by Hengluo Law Firm

The applicant (Liu*) claimed that:He/She has a labor relationship with North X Labor Company, and his/her injury at the construction site should be recognized as a work-related injury and he/she should be compensated. He/She requests the arbitration to confirm the existence of a labor relationship between the two parties.

The respondent (Bei X Labor Service Company) argued that:Our company subcontracted the project to Ji *. Liu * was hired by Ji * and his compensation was paid by Ji *. There is no labor relationship between our company and Liu *, so we do not agree with his application for work-related injury compensation.

Hengluo Lawyer's Representation Opinion:In order to assist the client in protecting their rights, confirming the labor relationship is the first step. The lawyer immediately reviewed the case and organized evidence such as the "Professional Subcontracting Contract", "Labor Subcontracting Contract", "Employment Contract", "Hospitalization Medical Records", "Application for Entry", "Payroll", and "Attendance Records", aiming to prove the existence of a labor relationship between the two parties. The lawyer argued in court that the evidence clearly showed that Liu * was under the management of Beix Labor Company and engaged in paid labor arranged by the company, indicating that a labor relationship existed between the two parties.

  • Systematic organization can provide key evidence to prove the subordinate status of employees, including subcontracting contracts, labor contracts, payrolls, attendance records, admission application reports, hospitalization records, etc.
  • It was clarified in court that Liu * was managed by Beix Labor Company and engaged in paid labor arranged by the company, which meets the requirements for the identification of labor relations
  • Carry out thorough pre-trial preparations to avoid putting clients in a passive situation where they have "no evidence to rely on and no laws to follow", and lay a solid foundation for subsequent efforts to safeguard their rights in work-related injury cases

IV. Outcome of the case

After the trial, the arbitration tribunal adopted the opinion of Hengluo Law Firm and ruled that there was a labor relationship between Liu * and Beix Labor Service Company from July 2, 2021 to February 15, 2023. This result paved the way for Liu * to subsequently apply for work-related injury and claim work-related injury compensation. According to Article 1 and Article 2 of the "Notice on Establishing Labor Relationships" (Lab and Social Security Department [2005] No. 12), to determine the existence of a de facto labor relationship, the following conditions must be met: "the employer's various labor rules and regulations formulated in accordance with the law apply to the worker; the worker is managed by the employer and engaged in paid labor; and the work provided by the worker is an integral part of the employer's business."

5. Henglu Law Firm's Reminder

This case is handled by Beijing Henglu Law FirmWang XinruiAttorney (Practice Certificate No.: 11101202111290829, subject to the certificate issued by the judicial administrative organ);Chen PingAttorney (Practice License No.: 11101201411619680, subject to the document issued by the judicial administrative organ). Hengluo Law Firm reminds you: Labor relations refer to the legal relationship of labor rights and obligations established between workers and employers. When workers accept management, engage in arranged work, and receive compensation, they constitute subordination. To protect their rights and interests, the establishment of labor relations should be formalized in a written labor contract. Migrant workers working outside should pay special attention to signing contracts in a timely manner to avoid the other party refusing to compensate on the grounds of "non-existence of labor relations" in the event of disputes.

VI. Common Questions and Answers about Work-Related Injury Identification and Labor Relationship Cases

  1. Q: If an injury occurs at a construction site and the worker was hired by the contractor, can it be determined that a labor relationship exists between the worker and the general contractor or the labor service company?
    A:If it can be proven that the worker is managed by the company and engaged in paid labor arranged by the company, even if he/she is hired by a contractor, the factual labor relationship can be determined based on the evidence. This approach was adopted in this case.
  2. Q: How can I prove the employment relationship if I haven't signed a labor contract?
    A:The employment subordination can be verified by payroll records, attendance sheets, admission applications, work permits, colleagues' testimonies, hospitalization records, etc. It shall be determined in accordance with the Notification No. 12 [2005] issued by the Ministry of Labor and Social Security.
  3. Q: If the labor company subcontracts the project to an individual, who is responsible if the worker gets injured?
    A:Illegal subcontracting does not affect the determination of labor relations or the responsibility of the employing entity. Workers can first apply for arbitration to confirm the labor relationship, and then proceed with the compensation for work-related injuries.
  4. Q: What is the significance of confirming the labor relationship for workers' compensation?
    A:Labor relations are a prerequisite for determining work-related injuries and enjoying work-related injury insurance benefits. If they are not confirmed, it will be difficult to initiate the work-related injury compensation process.
  5. Q: What evidence should migrant workers keep when working away from home?
    A:You should keep the labor contract, pay slips, attendance records, work records, medical records, and communication records with the company to prevent potential problems.