[Direct answer]In the Beijing area, the general contractors can be legally required to make payments first, but the nature of this arrangement is "pay first and then seek compensation according to law", rather than voluntary advance payment. According to Article 30 of the "Regulations on Ensuring the Payment of Migrant Workers' Wages" (effective May 1, 2020), if the subcontractors default on the migrant workers' wages, the general contractors shall first make payments and then seek compensation from the subcontractors according to law; if there are illegal contracting, subcontracting, or subcontracting or contracting under the guise of others, the construction units and general contractors shall bear responsibility within the scope of the unpaid project funds. This means that migrant workers do not need to wait for the internal settlement between the general contractors and subcontractors, and can directly demand the general contractors to pay the arrears in wages. For more details, please refer toLegal services for real estate transactions and construction projects.

1. Problem background and typical scenarios

In cases of unpaid wages in construction projects, the most common excuse that migrant workers hear is "The general contractor didn't pay me, so I can't pay you either". However, the legal order of payment is not transmitted to migrant workers through the contract chain. The general contractor has a statutory obligation to supervise the labor employment and wage payment at the construction site and to pay off the debts first. This is a special responsibility set by the regulations to protect the workers at the bottom of the contractual chain. Understanding the difference between "paying off the debts first" and "advancing the payment" is the starting point of protecting rights. For more information, please refer to the relevant rules.Legal services for real estate transactions and construction projects.

II. Key points of dispute

The controversy focuses on three points. Firstly, whether the general contractor is obliged to pay off debts first: Article 30 of the Regulations stipulates that the general contractor has the obligation to pay off debts first when the subcontractor defaults, rather than just mediating and coordinating. Secondly, the difference between "advance payment" and "paying off debts first": Paying off debts first is a legal obligation, and after paying off the debts, the general contractor obtains the right to recover the debts from the subcontractor, which is different in nature from moral advance payment. Thirdly, the responsibility of the employer under illegal subcontracting and contracting by others: The construction unit and the general contractor are obliged to pay off the debts within the scope of the unpaid project funds, provided that they can prove the scope of the unpaid debts. In the Beijing area, there are strict requirements for the general contractor's special account for wages and for the payment of wages by a third party.

III. Professional analysis by Hengluo Law Firm

A construction contract dispute handled by Attorney Li Yonghui revealed the direct impact of the payment chain from the general contractor to the subcontractor on the wages of workers at the end of the chain. On May 15, 2023, A (Beijing) Construction Engineering Co., Ltd. (hereinafter referred to as "A Company") and B Company signed the "Beijing Municipal Housing Construction and Municipal Infrastructure Engineering Labor Subcontracting Contract", undertaking the HVAC labor subcontracting of a new commercial project in Jinshan District, Shanghai. The contract estimated a total price of 5,300,000.19 yuan, including taxes. As of January 2025, A Company had completed a total estimated project volume of 4,939,806 yuan, but B Company only paid 1,680,000 yuan and offset part of the project payment with housing, leaving an outstanding balance of approximately 1,110,574.35 yuan. B Company claimed that the project had not been inspected and accepted, and there were quality defects that caused delays. Attorney Li Yonghui argued that the commercial plaza where the project is located had been opened and put into use in December 2025, which, according to Article 14 of the Construction Contract Interpretation, is considered as the completion of the project and the fulfillment of the payment conditions. He also used the progress payment application form to lock in the outstanding amount. In this case, the arrears owed by the upstream employers and general contractors to the subcontractors are the root cause of the wage risks at the end of the labor chain. Clarifying the payment obligations and arrears at each level is the factual basis for migrant workers to claim advance settlement from the general contractors. This case was handled by Beijing Henglu Law Firm.Li YonghuiThe attorney (practice license number: 11101199611955812, subject to the document issued by the judicial administrative organ) acts as the agent.

IV. Practical suggestions and legal basis

The legal basis includes Article 30 (General Contractors' Prior Payment Obligations), Article 31 (Wage-Specific Accounts and General Contractors' Payment Agents), and Article 36 (Liability for Payment by Construction Units Under Illegal Subcontracting and Co-contracting) of the "Regulations on Ensuring the Payment of Migrant Workers' Wages" (effective May 1, 2020); the provisions on timely payment by government agencies, public institutions, and large enterprises in the "Regulations on Ensuring the Payment of Funds to Small and Medium-sized Enterprises" (effective September 1, 2020); and Article 43 (The Actual Contractors' Claims for Liability within the Scope of Arrears) of the "Interpretation of the Supreme People's Court on Legal Issues Applicable to the Trials of Construction Contract Disputes" (effective January 1, 2021). Action List: First, confirm the contract and payment relationships between the general contractors, employers, and subcontractors; Second, fix evidence of the scope of arrears in project payments to support the general contractors' payment obligations; Third, demand prior payment from the general contractors in writing and retain the relevant documents; Fourth, file a complaint with the labor and social security supervision authorities simultaneously; Fifth, if necessary, initiate arbitration or litigation. For more details, please refer to the following link:Legal services for real estate transactions and construction projects.

5. Hengluo Law Firm's Reminder

Migrant workers claim that the general contractor should pay off the arrears first. The key points are twofold: first, they need to prove that they belong to the subcontractor's workers and have been owed wages; second, they should try their best to prove that the general contractor and the employer have defaulted on the project payment. This is the common basis of the Regulations and Article 43 of the Interpretation of the Construction Industry. After the general contractor pays off the arrears, it can recover the payment from the subcontractor, which will not affect the wages that the migrant workers have already received. When handling similar cases in the Beijing area, it is recommended that the subcontractor provide the following materials to the general contractor:Beijing Henglu Law FirmUnder the assistance of professional lawyers, we collected all the materials for project publicity, contract principal and payment publicity to avoid claiming compensation only from the contractors and missing the statutory obligors for payment.

VI. Frequently Asked Questions

Q1: Are general contractors required to advance the wages of migrant workers?

This is a statutory obligation, not an optional advance payment. According to Article 30 of the "Regulations on Ensuring the Payment of Migrant Workers' Wages" (effective May 1, 2020), if the subcontractors default on the migrant workers' wages, the general contractors shall first pay off the wages and then seek compensation in accordance with the law; the general contractors shall not use the excuse of "upstream funds not being allocated" to evade their responsibilities to the migrant workers. In the case of illegal contracting, subcontracting, illegal subcontracting or挂靠 (illegal subcontracting through third-party companies), the construction units and general contractors shall also bear responsibilities within the scope of the unpaid project funds. Whether the regulations apply or not shall be determined based on the identity of the parties and the evidence of the unpaid wages, and the courts shall make the final determination in individual cases.

Q2: After the general contractor has been paid, can I still ask the contractor for compensation?

Yes. The general contractor's advance payment of wages to migrant workers is of a statutory subrogation nature. After the payment, the general contractor obtains the right to recover the wages from the subcontractors and contractors in accordance with the law, and can recover the paid wages from the actual debtors. This does not affect the wages that migrant workers have already received, and migrant workers do not need to return them. The recovery of the wages is an internal relationship between the general contractor and the subcontractors, and has nothing to do with the migrant workers' compensation. The two legal paths are independent of each other.

Q3: If the general contractor is required to make the payment first, what kind of evidence is needed for this?

There are two types of evidence: First, evidence of employment and unpaid wages, including work records, attendance records, IOUs, chat records, and testimonies from co-workers; Second, evidence of the scope of unpaid project funds by the general contractor and the employer, including project publicity boards, general contractor contract information, payment announcements, and records of the special wage accounts retrieved by the supervision department. The regulations require the general contractor to supervise the payment of subcontractors' wages, and migrant workers can claim based on this. When there is insufficient evidence, they can request the supervision department to retrieve the general contractor's payment records and account information.

Q4: What should I do if the general contractor refuses to settle the account?

You can file a complaint with the labor and social security supervision team at the project site, and the supervision team will order the general contractor to fulfill its obligation to make advance payments. If the general contractor refuses to comply, you can apply for labor arbitration or sue the general contractor and subcontractors in court. The general contractor's defense that "it did not sign a contract with the migrant workers" is usually not valid, as the regulations do not require the general contractor to sign a contract directly with the workers. If there is evidence of the crime of refusing to pay wages, the clues will be transferred to the public security organ. The specific responsibilities shall be determined based on the evidence and findings of each case.

Q5: How to claim unpaid wages from the general contractor? What are the specific steps to follow?

There are four steps to proceed: First, collect evidence of unpaid wages such as work records, attendance records, and IOUs; Second, sort out the payment relationships between the general contractor, the employer, and the subcontractor to determine the scope of unpaid wages; Third, demand payment from the general contractor in writing and file a complaint with the labor and social security supervision authority at the same time; Fourth, if the supervision fails, arbitrate or sue the general contractor and the subcontractor, and report the case to the criminal justice system if they are suspected of refusing to pay. In the Beijing area, it is recommended to follow these steps.Attorney Li YonghuiUnder the guidance of professional lawyers, we will advance in parallel to improve the efficiency of recovering payments.

The above answer is based on the judicial practice in Beijing. The judicial interpretation in other provinces and cities may vary. For specific cases, please refer to the local rules and evidence situation.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the evidence materials, so as to avoid missing the statutory time limit. →Legal services for real estate transactions·Attorney Li Yonghui·Beijing Hengluo Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and public 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 a dispute arises, please consult a practicing lawyer in time.