[Direct answer]This is invalid. Paying social insurance premiums is a legal obligation of both employers and employees, and it is a mandatory requirement by law. It cannot be waived by mutual agreement or voluntary commitment of the employees. If an employee signs an agreement to waive social insurance, the employee can not only demand retroactive payment of social insurance premiums, but also terminate the labor contract and claim economic compensation on this basis. The agreement will instead become important evidence for protecting the employee's rights.
I. Problem Background and Typical Scenarios
In practice, such situations are very common: employers sign commitment letters with employees to voluntarily waive social insurance payments and replace social insurance with cash subsidies to reduce costs; or workers actively cooperate with the signing to receive higher take-home pay. In the short term, it seems that both parties benefit, but once there are work-related injuries, illnesses, unemployment, and other situations requiring social insurance to cover the costs, the risks will immediately emerge, and disputes will follow.
II. Key points of contention
First, the effectiveness of the agreement. The social security system serves the public interest, and individuals do not have the right to dispose of it. Any agreement promising to waive it is invalid from the outset, and this is not a matter that can be negotiated between the two parties. Second, whether the worker can change their mind. Yes, and there is no obstacle to good faith, because the agreement itself is illegal and invalid. Third, whether they can claim economic compensation. If the employer fails to pay social insurance in accordance with the law and the worker terminates the contract on this basis, they have the right to claim economic compensation. Fourth, whether the cash subsidies need to be returned. Some cases support the employer's claim to return the social security subsidies that have been issued, which needs to be evaluated on a case-by-case basis.
III. Professional analysis by Henglue Lawyers
The interpretation of the referee is highly consistent. The Fifth Intermediate People's Court of Chongqing City pointed out in Case No. 5576 of 2021 Yutian Civil Final Judgment that it is a statutory obligation to pay social insurance in accordance with the law, and the employer cannot evade its obligation by letting the employee promise to waive it. This behavior damages the employee's personal interests and social public interests, and is invalid. If the employee terminates the contract and requests economic compensation on this basis, it should be supported. The typical labor dispute cases issued by the Supreme People's Court (Zhu * v. * Security Company) also determined that the agreement not to pay social insurance is invalid, and the unit was ordered to pay economic compensation. Courts in Shandong, Shanxi and other places also have similar judgments. It can be seen that from the local intermediate court to the Supreme Court, the rules are consistent: the waiver of the contract is invalid, and the compensation should be supported. Workers should actively safeguard their rights according to the above-mentioned rules and judicial interpretations. 裁判口径高度统一。重庆市第五中级人民法院在(2021)渝05民终5576号案中指出,依法缴纳社保是法定义务,不能因劳动者承诺放弃而不履行,该行为损害劳动者个人利益与社会公共利益,无效;劳动者据此解除合同并请求经济补偿的,应予支持。最高人民法院发布的劳动争议典型案例(朱某与某保安公司案)同样认定不缴社保的约定无效,判决单位支付经济补偿。山东、山西等地法院也有同类判决。可见从地方中院到最高法规则一致:弃约无效、补偿支持。劳动者在Labor disputesThe process of providing evidence in this case is relatively simple. The agreement text itself is the most powerful piece of evidence.
IV. Practical suggestions and legal basis
According to Article 58 and Article 60 of the Social Insurance Law (adopted on October 28, 2010, and amended on December 29, 2018), employers shall register their employees for social insurance and pay social insurance premiums in full within 30 days from the date of employment. According to Article 38 (1)(3) and Article 46 (1) of the Labor Contract Law (adopted on June 29, 2007, and amended on December 28, 2012), if an employer fails to pay social insurance premiums in accordance with the law, the employee may terminate the contract and receive economic compensation. Suggestions: First, request the employer in writing to make up for the arrears and file a complaint with the social insurance supervision department at the same time; if no agreement is reached, notify the employer in writing to terminate the contract on the grounds of failure to pay social insurance premiums in accordance with the law, and then apply for labor arbitration to claim economic compensation; the disputes over making up for the arrears and the disputes over compensation can be pursued in parallel.
5. Henglu Law Firm's Reminder
The biggest hidden danger of giving up social insurance is work-related injuries: if the unit fails to participate in social insurance, all benefits in the event of work-related injuries will be borne by the unit itself, and employees will have an additional layer of protection when seeking justice. We also remind employers that such agreements cannot isolate risks, and may also lead to retroactive payments, late payment penalties, and administrative penalties. For compliant employment, please refer to the relevant guidelinesCorporate legal servicesOn the side of the workers, there are issues concerning the connection between wages, termination, and compensation. These issues can be addressed in combination with the following factors:Contract disputesOrganize the evidence chain to clarify the logical flow of the argument.Beijing Henglue Law FirmIt is recommended to first secure evidence of the unit's unpaid social insurance before taking action to terminate the employment contract. If the procedural order is incorrect, it may affect the claim for compensation.
VI. Frequently Asked Questions
Q1: Do such claims have a high chance of success?
The rules are clear and the referees are consistent. The chances of winning in claims for economic compensation and back payments are higher, and the main workload lies in the organization of evidence and procedures.
Q2: What evidence do I need to prepare?
Renounce the social insurance agreement or commitment letter, labor contract, salary records, the results of the social insurance payment record inquiry, and the notice of termination and the delivery certificate.
Q3: How much are the attorney's fees and arbitration costs approximately?
Labor arbitration does not charge fees. Lawyer's fees are generally negotiated based on the amount of the dispute and the stage of the case. The cost of economic compensation cases is relatively manageable.
Q4: How long does the process take?
Arbitration is usually concluded within 45 days, and the time limit may be extended for complex cases. The supplementary payment is handled through the social insurance audit process, and the whole process is usually completed within a few months.
Q5: What should I do first?
First, check the social insurance payment records and send a written notice to the employer urging them to make up for the payments. After keeping the relevant evidence, you can then decide on the timing of terminating the employment contract and initiating arbitration proceedings.
The above answer is based on the judicial practice in the Beijing area. The judicial interpretation in other provinces and cities may vary. For specific cases, please refer to the local rules and evidence situation.
VII. Related public cases (for reference only, not handled by our firm)
The following cases are all sourced from the official websites of courts at all levels, judicial authorities, and authoritative media outlets, and are not related to the cases handled by our firm. They are provided solely for reference in understanding relevant adjudication rules and do not constitute opinions on specific cases.
[Case No.](2021) Chongqing Municipal Intermediate People's Court Civil Case No. 05576
[Trial Court]The Fifth Intermediate People's Court of Chongqing City
[Judicial Summary]It is the legal obligation of employers to pay social insurance premiums for workers in accordance with the law, and this obligation cannot be evaded by the workers' promise to waive it. If workers explicitly waive the employers' obligation to pay social insurance premiums for them, it not only harms the workers' personal interests but also infringes on the public interest of society. Therefore, such an act is invalid. If workers terminate the labor contract on this ground and request the employers to pay economic compensation, their claims should be supported.
[Source]The People's Court of Dawu County, Sichuan Province (Typical Cases of Labor Disputes Published by the Intermediate Court from 2019 to 2021) (2022)
[Case Number]The case number has not been made public.
[Trial Court]The Supreme People's Court (Typical Cases of Labor Disputes)
[Judicial Summary]Paying social insurance premiums is a statutory obligation of both employers and employees, and it cannot be waived by mutual agreement except under circumstances stipulated by law. Any agreement between the two parties regarding the non-payment of social insurance premiums is invalid. If an employer fails to pay social insurance premiums for an employee in accordance with the law, and the employee terminates the employment contract on this basis, it meets the statutory circumstances under which the employer should pay economic compensation. The court will order the employer to pay economic compensation.
[Source]The Supreme People's Court (the Supreme Court released a typical case of labor disputes: Zhu *'s labor dispute case with a security company) (2024)
If you are currently facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant evidence materials, to avoid missing the statutory time limit. →Labor arbitration legal services·Beijing Henglue 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 you encounter disputes, please consult a practicing lawyer in time.