[Direct answer]In the Beijing area, there is generally no labor relationship between retired rehired employees and their employers, but a service relationship. According to Article 44 of the Labor Contract Law of the People's Republic of China (implemented on January 1, 2008 and amended on December 28, 2012), if a worker begins to enjoy basic pension benefits in accordance with the law, the labor contract shall terminate; if the original labor relationship terminates and the employer rehires the worker, the two parties shall establish a service relationship. Article 32 of the Interpretation of the Supreme People's Court on Legal Issues Concerning the Handling of Labor Disputes (implemented on January 1, 2021) stipulates that if an employer and a worker who has been legally enjoying pension insurance benefits or receiving a pension have a labor dispute, the dispute shall be handled in accordance with the service relationship. For such disputes, reference can be made to the relevant provisions.Work-related injuriesColumn.

I. Problem Background and Typical Scenarios

These types of issues often arise in several situations: first, employees who have completed the retirement procedures and received their pensions are still employed by their former units; second, professional and technical personnel and managers who have retired are hired by other units to serve as consultants or in management positions; third, enterprises re-employ retired teachers, doctors, technicians, and other highly skilled professionals; fourth, elderly workers who have not yet received their pensions but have reached the statutory retirement age are still working in their units; fifth, re-employed personnel are injured at work, and both parties have disputes over the nature of the compensation. When handling similar cases in the Beijing area, the authorities usually first review whether the workers have legally enjoyed pension insurance benefits or received their pensions, and then determine whether the disputes should be handled as labor disputes or service disputes.

II. Key points of contention

Focus One: Reemployed personnel who have already received pension insurance benefits or are receiving retirement pensions shall be treated as having a labor relationship with the employer, and the labor laws such as minimum wage, economic compensation, and overtime pay do not apply to them. Focus Two: For individuals who have reached the statutory retirement age but have not received pension insurance benefits in accordance with the law, there are differences in the determination of their employment status across different regions. This should be judged based on the reasons why they have not received these benefits. Focus Three: Regarding the nature and validity of reemployment agreements, the parties may freely agree on compensation, contract duration, work content, and termination conditions. Focus Four: For reemployed personnel who sustain injuries, if the relationship is treated as a labor relationship, compensation claims shall be pursued in accordance with the provisions of the Tort Liability Chapter of the Civil Code of the People's Republic of China, rather than through work-related injury compensation. Focus Five: Whether the working years before retirement can be continuously calculated during the reemployment period. Specifically, this shall be determined based on the currently effective laws, regulations, and judicial rulings. For compensation payments, relevant provisions may be referenced.Creditor's rights and debts, and enforcement casesColumn.

III. Professional analysis by Henglue Lawyers

Taking the labor dispute case handled by our firm as an example, we can observe the legal consequences of employers terminating labor contracts for internal reasons. In August 2025, A Co., Ltd. issued "Notices of Terminating Labor Relationships" to 12 employees, including Zhang Li, Hu Fei, and Liu Gang, on the grounds that it had discovered irregularities in the recruitment process during inspections. These employees had all provided labor, accepted management, and received salaries during their employment, and some had even renewed their labor contracts with the company. The 12 employees entrusted our firm's lawyers to jointly apply for arbitration, demanding the revocation of the terminations and the restoration of labor relations. The lawyers pointed out that according to Article 16 of the Labor Contract Law of the People's Republic of China (effective January 1, 2008 and amended on December 28, 2012), labor contracts become effective upon signature and stamping by both parties, and social security registration is merely an administrative matter, not a prerequisite for the contract's effectiveness. Renewal of contracts follows the principle of mutual consent, and internal or higher-level approval cannot override workers' rights. By comparing each item with Article 39 of the law, the lawyers concluded that neither inspections and rectifications nor irregular recruitment procedures constitute statutory grounds for unilateral termination. According to Article 48, if workers request continued performance and the contract can still be performed, the employer must comply. Both the arbitration award and the first-instance judgment confirmed that the company's terminations were illegal and supported continued performance. After A Co., Ltd. appealed, the second-instance court rejected the appeal and upheld the original judgment, enabling the 12 workers to achieve three consecutive victories from arbitration to the second-instance court. This case highlights that employers lack legal basis for dismissing workers on grounds such as unregistered procedures or internal rectifications, and must bear the responsibility of continued performance or compensation for illegal terminations. This case was handled by Beijing Henglu Law Firm.Feng NaAttorney (Practice Certificate No.: 11101202211562923, subject to the certificate issued by the judicial administrative organ) acting on behalf of the client.

IV. Practical suggestions and legal basis

Action suggestions: First, sign a written reemployment agreement before reemploying, clarifying the compensation standard, payment cycle, job content, agreement period, and termination conditions to avoid disputes over the nature of the agreement caused by using the labor contract template. Second, clarify the compensation arrangements for accidental injuries. It can be negotiated to purchase commercial insurance to make up for the lack of work injury protection. For compensation involving injuries, reference can be made to relevant provisions.Personal injury and medical disputes1. The first point is that the employing unit shall provide the returning employee with a written labor contract and ensure that the content of the contract meets the requirements of the Labor Contract Law. 2. The second point is that the returning employee shall retain the employment agreement, payroll records, attendance records, and evidence of work arrangements, so as to have a basis for claiming compensation. 3. The third point is that the employing unit shall truthfully inform the returning employee of the nature of the employment relationship and shall not evade its obligations under the previous labor relationship by falsely claiming that it is a returning employee. 4. The fourth point is that if there are disputes over the continuation of the pre-retirement labor relationship and the connection of the working years, the returning employee shall apply for arbitration promptly before and after leaving the employing unit, and pay attention to the one-year arbitration time limit stipulated in Article 27 of the Labor Dispute Mediation and Arbitration Law of the People's Republic of China (effective May 1, 2008). 5. With regard to legal basis, Article 44 of the Labor Contract Law of the People's Republic of China stipulates that the labor contract shall terminate when the employee begins to enjoy the basic old-age pension benefits in accordance with the law; Article 21 of the Implementing Regulations of the Labor Contract Law of the People's Republic of China (effective September 18, 2008) stipulates that the labor contract shall terminate when the employee reaches the statutory retirement age; Article 32 of the Interpretation of the Supreme People's Court on the Application of Law in the Trials of Labor Disputes (effective January 1, 2021) clearly stipulates that the employment disputes of those who have already enjoyed old-age insurance benefits or received retirement pensions shall be handled as labor relations.

5. Henglue Law Firm's Reminder

Risk Warning: First, the nature of the reemployment contract is determined by whether the employee enjoys pension insurance benefits, rather than just looking at the contract name. Even if a "service agreement" is signed, it may still be deemed as an employment relationship if the employee does not receive such benefits. Second, injuries sustained during the reemployment period generally cannot go through the work-related injury identification process. Compensation scope and standards need to be claimed separately based on the service relationship, and it is advisable to diversify risks through commercial insurance in advance. Third, reemployment compensation, termination compensation, etc. mainly depend on the provisions of the agreement. If there are no such provisions, the scope of legal protection will be limited. Fourth, there are regional differences in the handling of individuals who have reached the retirement age but have not received pension benefits. In Beijing, the judicial interpretation suggests consulting local lawyers for verification. It is recommended to formalize the agreement and retain evidence as soon as possible, and to refer to relevant provisions when necessary.Beijing Henglu Law FirmOn the official website, similar columns are evaluated by professional lawyers to determine the legal path to follow.

VI. Frequently Asked Questions

Q1: Does a retired person being rehired count as an employment relationship?

Generally, it doesn't count. According to Article 32 of the "Interpretation of the Supreme People's Court on Legal Issues Applicable to the Trial of Labor Disputes" (effective January 1, 2021), if an employee who has already legally enjoyed pension insurance benefits or received a retirement pension enters into an employment dispute with the employer, the dispute shall be handled as a labor relationship. The remuneration, term, and termination of the employment contract shall mainly be governed by the reemployment agreement between the parties, and the labor law protections such as minimum wage and economic compensation shall not apply. For those who have reached the statutory retirement age but have not yet received the retirement benefits, the existence of regional differences shall be identified, and a comprehensive judgment shall be made based on the reasons for not receiving the retirement benefits.

Q2: What evidence do I need to prepare to determine the nature of the employment relationship?

Preparations should focus on identity and benefits: First, the retirement approval form, pension payment records, or retirement benefit receipt certificates, to prove that the beneficiary has legally received benefits; Second, reemployment agreements or employment contracts, to clarify the rights and obligations of both parties; Third, wage payment records, attendance sheets, and work arrangement notifications, to reflect the actual implementation methods; Fourth, records of social insurance payment status inquiries. The more complete the evidence is, the clearer the determination will be. It is recommended to keep relevant materials from the beginning of employment.

Q3: How is compensation paid to injured reemployed staff members?

For those handled as labor relations, they generally cannot apply for work-related injury compensation. Instead, they can claim corresponding responsibilities from the unit according to the provisions on compensation in the Tort Liability Chapter of the Civil Code of the People's Republic of China (effective January 1, 2021), and then share the responsibilities according to the degree of fault of both parties. Compensation items typically include medical expenses, nursing care fees, and loss of income. In practice, it is recommended that the unit purchase employer's liability insurance or accident insurance for rehired employees. If the rehired employees suffer injuries, they should seek medical treatment promptly and keep the medical records and expense receipts, and then resolve the matter through negotiation or litigation as soon as possible.

Q4: How long does it take to litigate a reemployment dispute?

If it is determined to be a labor relationship, you can directly file a lawsuit with the court. Civil cases applying the ordinary procedure are generally concluded within six months, and those applying the summary procedure are concluded within three months. If it belongs to a labor dispute, you need to apply for arbitration first, and the arbitration statute of limitations is one year. The specific timeframes are affected by evidence collection, appraisal and evaluation, and whether an appeal is filed. It is recommended to first clarify the nature of the employment relationship, and then choose the path of arbitration or litigation to avoid going through the wrong procedure and having the case dismissed and needing to start over again.

Q5: What should I pay attention to when signing a reemployment agreement?

The key points to be clearly stated include: first, the job content, location, and schedule; second, the compensation standard and payment cycle; third, the agreement term and termination/rescission conditions; fourth, the assumption of injury risks and commercial insurance arrangements; fifth, confidentiality and intellectual property rights, among other ancillary matters. At the same time, check whether the individual has already started receiving a pension, as this directly affects the nature of the relationship. The key points of the agreement can be referred to for reference.Work-related injuriesColumn.

The above content is based on the compilation of judicial practices in the Beijing area. The facts of individual cases and the jurisdiction of the court may affect the conclusions. Welcome to consult Henglu Law Firm about specific situations.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the evidence materials, to avoid missing the statutory time limit. →Labor arbitration legal services·Attorney Feng Na·Beijing Henglu Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and open adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. If you encounter disputes, please consult a practicing lawyer in time.