Work-related injury recognition tips 28: Illegal subcontracting in construction projects – does an injury suffered by a worker count as a work-related injury?

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Case Details: A construction company in Guangdong subcontracted some of the formwork work related to the project it was undertaking to Zhong, but Zhong did not possess a business license. Zhong then hired Ge to work at the construction site. On January 5, 2015, Ge fell from a wooden scaffold while installing a floor slab at a construction site, injuring his head and left hand, and was admitted to the hospital on the same day. 　　After being discharged, Ge submitted an application for work-related injury recognition to the local social insurance administration on June 8, 2015. On July 27, the local social insurance administration authority determined that the injury sustained by Ge at the construction site was considered an occupational injury. On October 30, 2015, the construction company, dissatisfied with the determination of the work-related injury, filed an administrative lawsuit with the local people’s court, requesting that the determination be revoked. The court’s final judgment dismissed the construction company’s claims and upheld the decision regarding the work-related injury. Analysis: The construction company claims that there is no labor relationship between it and Ge, and therefore it should not bear any responsibility for Ge’s work-related injuries under workers’ insurance regulations. Ge failed to follow safety procedures while working, did not wear any protective equipment, and refused to obey the instructions of safety officers; he is therefore heavily responsible for the accident that occurred, and should not be recognized as having suffered a work-related injury. 　　The court held that the construction company was a legitimate employer; the project in question was contracted by the construction company, which then subcontracted it to Zhong. Zhong did not possess a business license and therefore did not qualify as an employer. In accordance with Article 7 of the \"Opinions of the Ministry of Human Resources and Social Security on Several Issues Concerning Implementation\" (MOHRSS Document No. [2013] 34), it is the construction company that possesses employer status which should bear the responsibility for Ge’s work-related injury insurance. Therefore, the injured person, Ge, suffered an injury while at work, which meets the criteria for recognizing it as a work-related injury. According to Article 7 of the \"Opinions of the Ministry of Human Resources and Social Security on Several Issues Concerning Implementation\" (Ministry of Human Resources and Social Security Document No. [2013] 34), if a contracting unit that has the status to employ workers violates laws and regulations by subcontracting or subletting its contractual tasks to organizations or individuals that do not have such status, and workers employed by those organizations or individuals suffer work-related injuries or deaths while carrying out the contracted tasks, then the contracting unit with the status to employ workers shall bear the work-related injury insurance responsibilities that an employer is legally required to assume. ”　 　　After receiving Ge’s application for work-related injury recognition, the social insurance administration department accepted it in accordance with the law; the administrative procedures were lawful, and the decision regarding the work-related injury was correct.