[Direct answer]In the Beijing area, if an employer denies an employment relationship by citing "contractor-client relationship" or "cooperation relationship", this denial is not necessarily valid — the determination of an employment relationship depends on the actual employment management rather than the contract name. According to Article 1 of the "Notice on Establishing Employment Relationships" (Labor and Social Security Ministry [2005] No. 12), an employment relationship is established when the employer and the worker meet the requirements of legal subject qualification, the worker is subject to the employer's labor management and engaged in work that constitutes an integral part of the employer's business, and the employer pays the worker's labor remuneration. All three conditions must be met simultaneously to establish an employment relationship. The worker can provide evidence such as salary transfers, attendance records, work badges, WeChat communication, and colleague testimonies to form a chain of evidence. First, the worker can apply for arbitration to confirm the employment relationship, and then claim work-related injury benefits, double wage compensation, and economic compensation. The arbitration statute of limitations is one year.

1. Problem background and typical scenarios

Such defenses are often seen in industries such as construction decoration, cleaning and sanitation, transportation and delivery, and catering services: after the unit hires the worker, it does not sign a labor contract, but only signs a "contracting agreement" or "cooperation agreement". After an accident occurs, the unit claims that the two parties are engaged in equal cooperation; or the contractors or individual business owners hire workers and shift the responsibility to natural persons who do not have the qualifications to be employers. When handling similar cases in the Beijing area, arbitration institutions and courts often judge the nature of employment based on whether the worker accepts management, whether the payment is based on the results, and who bears the tools and risks. You can refer to this for reference.Labor arbitration and legal services for work-related injury compensationEvaluate the evidence.

II. Key points of contention

The controversy focuses on three points: Firstly, the separation of the contract name from its substantive content. The contractor's performance is based on the completion of work results, with remuneration settled according to the results, and the contractor provides his own tools and bears the risks himself. The employment relationship, however, centers on being managed by the employer and receiving remuneration on a periodic basis. Secondly, the burden of proof. Evidence such as wage payment receipts, attendance records, work permits, and testimonies from other workers, which are held by the employer, should be provided by the employer. Thirdly, the rules on illegal subcontracting. If the employing unit subcontracts or assigns the business to organizations or individuals who do not have the qualifications to employ workers, the employing unit shall bear the work-related injury insurance liability for the employees hired by it, and the relevant accounting can be referenced for settlement.Personal injury and medical dispute services.

III. Professional analysis by Henglue Lawyers

In a labor dispute handled by Henglue Law Firm, the employee, Liu * , was employed by a certain Sanitation Group Co., Ltd. as a cleaning supervisor since October 20, 2013, with a monthly salary of 4,000 yuan. The company failed to sign a written labor contract, pay social insurance, and had long-term arrears in wages. On March 7, 2022, Liu * filed for termination of the labor relationship on the grounds that the company failed to pay social insurance in accordance with the law, owed wages, and failed to pay overtime wages. On March 14 of the same month, he applied for labor arbitration. The company argued that it had signed a contract but that Liu * had taken it away. Based on the premise of confirming the labor relationship as the sole request, the lawyer collected evidence such as the "Notice of Forced Termination of Labor Relationship", express delivery receipts, employee attendance records, and bank and WeChat salary transfers, and cross-examined the attendance records unilaterally prepared by the other party. The arbitration committee adopted the lawyer's opinion, confirming that a labor relationship existed between the two parties from October 1, 2020 to March 7, 2022. It ruled that the company should pay overtime wages of 33,517 yuan, rest day overtime wages of 55,540 yuan, statutory holiday overtime wages of 10,482 yuan, economic compensation for terminating the labor relationship of 4,000 yuan, and the difference in wages of twice the amount due for not signing a labor contract of 15,126.44 yuan, as well as unpaid annual leave wages of 2,206.9 yuan, totaling approximately 120,872 yuan. This case was handled by Beijing Henglue Law Firm.Wang FangliAttorney (Practice Certificate No.: 11101201911086939, subject to the certificate issued by the judicial administrative organ) acting as the agent.

IV. Practical suggestions and legal basis

Legal basis: Articles 1 and 2 of the "Notice on Establishing Labor Relationships" (issued by the Ministry of Labor and Social Security on May 25, 2005); Articles 7, 10, and 82 of the "Labor Contract Law of the People's Republic of China" (adopted on June 29, 2007, amended on December 28, 2012, and implemented on July 1, 2013); Article 27 of the "Mediation and Arbitration Law of Labor Disputes of the People's Republic of China" (adopted on December 29, 2007, and implemented on May 1, 2008); and Article 3, Paragraph 1, Item 4 of the "Provisions of the Supreme People's Court on Several Issues Concerning the Trial of Administrative Cases Involving Work-related Injury Insurance" (implemented on September 1, 2014). Practical suggestions: Require employees to sign written labor contracts upon employment; keep records of salary payments, attendance and scheduling, and work communication; carefully evaluate and retain evidence of being managed and receiving fixed remuneration when asked to sign a "contractor agreement"; and first apply for arbitration to confirm the labor relationship and file a lawsuit within one year.

5. Henglu Law Firm's Reminder

Don't be intimidated by a "contracting agreement": If the employer pays a fixed monthly salary, conducts attendance checks and daily management, and provides tools and a workplace, these facts all contradict the characteristics of contracting. Three reminders: Confirming the labor relationship is a prerequisite for claiming work-related injury benefits, double wages, and economic compensation, so it should be initiated as soon as possible; pay attention to the one-year arbitration statute of limitations, and notify the employer in writing and keep records in the case of forced termination; if the employer hires workers through contractors, the employer can also be held liable for work-related injury insurance. In complex cases, it is advisable to seek legal assistance.Special services and other case servicesOrganize evidence and trial plans.

VI. Frequently Asked Questions

Q1: The employer claims that it's a contractor-client relationship. Can we win the case if we confirm that it's an employment relationship?

It depends on the actual employment facts, rather than the name of the agreement. If you can prove that the receiving unit controls the attendance and management of the employee, that the employee receives a fixed monthly salary, and that the work performed is an integral part of the receiving unit's business, even if a contractor or cooperation agreement is signed, it may still be recognized as an employment relationship. Conversely, if the employee truly arranges their own work, is paid based on results, uses their own tools, and bears their own risks, it will be more difficult to determine an employment relationship. The determination criteria can be found in Article 1 of the "Notice on Establishing Employment Relationships". It is recommended to first sort out the evidence and conduct a feasibility assessment before deciding whether to proceed with arbitration.

Q2: What evidence is needed to confirm an employment relationship?

Refer to the evidence listed in Article 2 of the "Notice on Establishing Labor Relationships": wage payment receipts or records, records of social insurance payment, work permits, recruitment registration forms or application forms, attendance records, and testimonies from other workers, supplemented by WeChat work groups, shift schedules, photos of work uniforms, and transfer records. Wages, attendance records, and materials are usually held by the employer, who should provide them. If the employer refuses to provide them, they will bear the adverse consequences.

Q3: How much does it cost to confirm the labor relationship and claim compensation?

Labor arbitration does not charge fees, which is a significant advantage compared to litigation. If the arbitration award is appealed to the first and second instance, the litigation fees shall be paid in accordance with the "Measures for the Payment of Litigation Fees". For labor disputes, the fee is generally 10 yuan per case, and it shall be borne by the losing party. The attorney's fees depend on the complexity of the case, the amount of the dispute, and the workload, and are charged on a per-case or hourly basis, subject to the terms of the contract. There is no uniform standard. It is recommended to first evaluate the evidence and the amount that can be claimed (work-related injury benefits, overtime pay, double wages, economic compensation, etc.), and then weigh the costs and benefits.

Q4: How long does it usually take from confirming a labor dispute to obtaining the arbitration result?

According to Article 43 of the "Law on Mediation and Arbitration of Labor Disputes", the arbitration award shall be completed within 45 days from the date of accepting the application. If the case is complex and approved to be extended, the extension period shall not exceed 15 days. If the party is not satisfied with the award and files a lawsuit, the first-instance ordinary procedure generally takes six months, and the summary procedure takes three months. The second-instance generally takes three months. It usually takes several months from applying for arbitration to the effective judgment. It is recommended to start the process as soon as possible and pay attention to the one-year arbitration statute of limitations.

Q5: If the employer denies the employment relationship by claiming it's a contractual relationship, what should you do first?

It is recommended to proceed in four steps: Firstly, collect evidence such as fixed salary transfers, attendance and scheduling records, work communication records, work badges and uniforms, and written termination notices; Secondly, send a written response to the employer, clarifying the actual employment situation and retaining delivery records; Thirdly, apply for confirmation of the labor relationship within the one-year arbitration statute of limitations; Fourthly, after confirming the relationship, separately claim work-related injury identification, work-related injury benefits, double wage differences, and economic compensation; Where illegal subcontracting or sub-contracting is involved, consider having the employing unit assume responsibility for work-related injury insurance.

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 Henglue Law Firm for specific cases.

VII. Relevant 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 Number](2018) No. 151 of the Supreme People's Court on Administrative Litigation
[Trial Court]The Supreme People's Court (retrial of an administrative judgment in the case of administrative confirmation of work-related injury between Lin Jiquan and Chongqing Xingping Construction Labor Services Co., Ltd.)
[Judicial Summary]Chongqing Xingping Company illegally subcontracted the glazed tile laying service it contracted to Dong Haier, a natural person who does not have the qualification to be an employer. Dong Haier hired Lian Ji Quan to lay glazed tiles at the construction site, but Lian Ji Quan was injured in the left foot by a tower crane's iron plate. The Supreme People's Court held in its review that Article 3, Paragraph 1, Item 4 of the "Regulations of the Supreme People's Court on Several Issues Concerning the Trial of Administrative Cases Involving Work-Related Injury Insurance" clearly stipulates that if an employing unit violates laws and regulations by subcontracting the contracted business to an organization or a natural person who does not have the qualification to be an employer, and the workers employed by such organization or natural person are injured or die while engaged in the contracted business, the employing unit shall bear the responsibility for work-related injury insurance. When there are circumstances of illegal subcontracting or subcontracting, the employing unit shall bear the responsibility for work-related injury insurance without the prerequisite of whether there is a labor relationship between the parties. The second-instance court's decision to revoke the work-related injury identification solely on the grounds that the effective civil judgment has confirmed that there is no labor relationship between the parties is a misapplication of the law and should be corrected. 重庆兴平公司将其承包的琉璃瓦铺设劳务违法分包给不具备用工主体资格的自然人董海儿，董海儿雇佣的蔺纪全在施工现场铺设琉璃瓦时被塔吊铁盘砸伤左足。最高人民法院再审认为，《最高人民法院关于审理工伤保险行政案件若干问题的规定》第三条第一款第四项明确，雇佣单位违反法律、法规规定将承包业务转包给不具备用工主体资格的组织或者自然人，该组织或者自然人雇佣的职工从事承包业务时因工伤亡的，雇佣单位为承担工伤保险责任的单位；存在违法转包、分包情形时，雇佣单位承担工伤保险责任不以是否存在劳动关系为前提。二审仅以生效民事判决已确认双方不存在劳动关系为由撤销工伤认定，属适用法律错误，予以纠正。
[Source]The cases published in the Bulletin of the Supreme People's Court and the ones reprinted by Paper News regarding the judicial interpretations of the Supreme People's Court (the responsibility for work-related injury insurance in the case of illegal subcontracting does not require the existence of a labor relationship) (2018-10)

[Case Number](2020) No. 118 of the Supreme People's Court on Administrative Litigation
[Trial Court]The Supreme People's Court (review of an administrative judgment in the case of Zhou Zhuhua v. the People's Government of Dongguan City, Guangdong Province, regarding the identification of a work-related injury)
[Judicial Summary]Dongguan Dongrui Company subcontracted the project to Xie Yaokun, who did not have the qualifications to be an employer. Xie Yaokun hired Zhou Zuhua to work on the project, but Zhou Zuhua was injured during the work. After the Dongguan City Social Security Bureau recognized the injury as a work-related injury, the Dongguan City Government revoked the work-related injury identification decision on the grounds that Zhou Zuhua had already received the compensation for damages paid by Xie Yaokun. The Supreme People's Court, upon review, held that the relationship between the workers who suffered work-related injuries and the contractors who illegally subcontracted or subdivided the project was not a typical labor relationship, but a legal fiction of the employer's liability for employing workers. When the contractors illegally subcontracted or subdivided the project to "contractors" who did not have the qualifications to be employers, the contractors should bear the work-related injury insurance liability for the workers injured by the "contractors". It is the statutory right of workers to enjoy work-related injury insurance benefits, and the work-related injury identification cannot be revoked solely on the grounds that they signed a mediation agreement and received compensation. 东莞东锐公司将承包工程分包给不具备用工主体资格的谢耀坤，谢耀坤聘用的周祖华从事承包工程时受伤，东莞市社会保障局认定工伤后，东莞市政府以周祖华已领取谢耀坤支付的损害赔偿款为由撤销了工伤认定决定。最高人民法院再审认为，因工伤亡的职工与违法转包、分包的承包单位之间并非典型劳动关系，而是法律拟制的用工主体责任关系，承包单位将工程违法转包、分包给不具备用工主体资格的“包工头”，“包工头”雇用的职工受伤应由承包单位承担工伤保险责任；依法享受工伤保险待遇是劳动者的法定权利，不能仅以其签订调解协议并领取赔偿款为由撤销工伤认定。
[Source]The official website of the Higher People's Court of Henan Province reposted the Judicial Guidelines of the Supreme People's Court (in five situations, the subject of responsibility for confirming the labor relationship may also bear the responsibility for work-related injury insurance) (2020-12).

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 Wang Fangli·Beijing Henglu Law Firm

Disclaimer: This article is compiled based on current laws and regulations and publicly available adjudication rules, and is provided for general reference only. It does not constitute formal legal advice for 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 a timely manner.