Employer's liabilities
You must be thinking that since China is a communist
country, heavy burden will be placed on the employer to protect the workers. This is not
quite true. Bearing in mind that there are more Chinese employers than foreign and foreign
invested jv employers in China, China places no more burden on the employer in this aspect
than many country.
The Labor Law does not say much about employer's liabilities. It requires employers to
buy accident insurance for employees. Failure which the employers will have to pay out of
pocket in the case of an accident in the course of work. Same for work related illness.
How about medical bills?
Well. At the time of promulgation of the Chinese laws, hospitals are financed by the
government. It may still be the case but the subsidies are inadequate to pay for the bills.
Hence, locals have to pay quite a large sum hospital bills if they are seriously ill. If
the illness is not work related, the employer does not need to pay for the medical
bills unless it is specified as a benefit under the employment contract. Medical insurance
is offered by some insurance companies. It is up to the employer to see whether to make it
a welfare.
My company has bought accident insurance for the employees, is that all we need to do?
No. If the insurance fails to cover adequately, the employer has to be liable. If there
is no insurance company offering a good enough policy, too bad for the employer.
How about work related illnesses?
The employer has to buy insurance to cover work related illnesses. You may not find one
around. Too bad.
We agree it is too simplified to restrict employer liabilities to accident and
iillnesses. However, these are two areas employers are more concerned with.