SPC releases exemplary cases on safeguarding rights and interests of workers in new forms of employment
To mark the International Workers' Day, the Supreme People's Court (SPC) released exemplary cases on protecting the rights and interests of workers in new forms of employment, including deliverymen and ride-hailing drivers, which have emerged with the application of internet technology and the development of the digital economy.
Focusing on liability rules for harm done to, and caused by, workers engaged in new forms of employment, this move aims to protect the rights and interests of workers, victims and enterprises in accordance with the law and promote the healthy and orderly development of the internet-based platform enterprises and economy.
In recent years, with the rapid development of the internet-based platform economy, new forms of employment have played an important role in keeping economic growth and employment stable. The SPC has fully leveraged its role in unifying judgment standards and resolving disputes to promote harmonious labor relations.
In December 2024, the SPC issued the first batch of guiding cases involving disputes in new forms of employment, clarifying the standards for determining labor relationships in this sector.
In one of the newly released cases about labor dispute between an individual and a transportation company, the court handling the case, referencing the standards set forth in the previously issued guiding cases, determined that there was an employment relationship between the company and the ride-hailing freight truck driver as evidenced by the presence of employment-related facts and a dominant labor management relationship.
In another case involving a dispute between a catering delivery company and an insurance company, the court handling the case clarified that determining whether the action of the delivery driver falls under the "work-related duties" should be based on the specific situations stipulated in the insurance contract, as well as a combination of factors such as legal provisions, the scope of business operations, the type of work undertaken by workers, the necessity of engaging in relevant activities to complete job duties, and whether the actions are assigned by the company.
Enterprises are encouraged to purchase employer liability insurance, third-party liability insurance, and other commercial insurances, to ensure that workers in new forms of employment, who suffer occupational injuries or cause harm to others while performing their job duties, receive timely medical treatment or see economic compensation paid to their victims, thereby promoting the healthy and regulated development of new economic forms.
In a third case involving a non-motor vehicle traffic accident, in which a worker caused harm to a victim while performing job duties, the judgment of the court allowed the injured party to include the insurance company that provides commercial insurance as a joint defendant. Furthermore, if the conditions for the injured party to directly claim compensation from the insurer are met as stipulated by insurance laws or contractual agreements, the court shall order the insurance company to directly assume the compensation responsibility.