In the field of construction, it is not uncommon for "contractors" to undertake projects and hire temporary workers. Due to multiple layers of subcontracting and chaotic management, once workers suffer casualties, they often find themselves in a dilemma of rights protection, where "labor relations are difficult to confirm and no one assumes liability for compensation". Recently, the Yishui County People's Court concluded an administrative litigation case regarding work-related injury recognition triggered by illegal subcontracting, clarifying that even if there is no direct labor relationship, illegal subcontracting units with the qualifications of employing entities should still bear the responsibility for work-related injury insurance.
The plaintiff, a labor engineering company (hereinafter referred to as "Labor Company"), has a business scope covering construction labor subcontracting, construction engineering, etc., and possesses the corresponding employment subject qualification. In June 2025, the Labor Company subcontracted the demolition project it had contracted to a natural person surnamed Wang who did not possess the employment subject qualification. In October of the same year, a worker surnamed Liang employed by Wang fell and was injured while dismantling air conditioners at the construction site, and was diagnosed with a fracture of the right calcaneus.
In February 2026, Mr. Liang applied to the county human resources and social security department for work-related injury recognition. The department issued a "Work-Related Injury Recognition Decision" in accordance with the law, recognizing Mr. Liang's injury as a work-related injury. The labor service company disagreed and filed an administrative lawsuit with the court, requesting the revocation of the work-related injury recognition decision on the grounds that there was no labor relationship between it and Mr. Liang.
According to Article 14, Item (1) of the Regulations on Work-Related Injury Insurance, if an employee is injured in an accident due to work-related reasons during working hours and at the workplace, it shall be recognized as a work-related injury. In this case, the third party, surnamed Liang, was arranged by Wang to engage in air conditioning dismantling operations at the construction site. The time, place, and reason for his injury are all in compliance with the aforementioned legal provisions, and it should be recognized as a work-related injury.
The core focus of this case is: in the illegal subcontracting relationship, if a worker employed by the actual construction personnel suffers a work-related injury, should the contracting unit with the qualification of an employing entity bear the responsibility for work-related injury insurance?
The court held that Article 29, Paragraph 3 of the Construction Law of the People's Republic of China stipulates that general contracting units are prohibited from subcontracting projects to units that do not possess the corresponding qualifications. Subcontracting units are prohibited from further subcontracting the projects they have contracted. Article 3 of the Provisions of the Supreme People's Court on Several Issues Concerning the Trial of Administrative Cases Involving Work-Related Injury Insurance stipulates that where the social insurance administrative department identifies the following units as units bearing work-related injury insurance liability, the people's court shall uphold such identification... (4) If an employing unit violates laws and regulations by subcontracting contracted business to an organization or natural person that does not possess the qualification of an employing entity, and the employees hired by such organization or natural person suffer work-related injuries or deaths while engaging in the contracted business, the employing unit shall be the unit bearing work-related injury insurance liability. Article 7 of the Opinions of the Ministry of Human Resources and Social Security on Several Issues Concerning the Implementation of the Regulations on Work-Related Injury Insurance stipulates that if a contracting unit possessing the qualification of an employing entity violates laws and regulations by subcontracting or outsourcing contracted business to an organization or natural person that does not possess the qualification of an employing entity, and the workers hired by such organization or natural person suffer work-related injuries or deaths while engaging in the contracted business, the contracting unit possessing the qualification of an employing entity shall bear the work-related injury insurance liability that the employing unit is legally required to bear.
In this case, the labor service company's business scope includes construction labor subcontracting, construction engineering, construction engineering survey, and specialized construction operations. It possesses the qualifications to engage in demolition labor services as an employer. However, by violating legal regulations by subcontracting its contracted business to a natural person, Mr. Wang, who lacks the qualifications to be an employer, the company caused a third party, Mr. Liang, to be injured at work. Therefore, the labor service company should bear the responsibility for work-related injury insurance.
Finally, the court rejected the claims of the plaintiff labor service company. After the first-instance judgment, the labor service company appealed, but the court of second instance rejected the appeal and upheld the original judgment.
This case reveals the rules for bearing work-related injury insurance liability in cases of illegal subcontracting and outsourcing, with three points worthy of attention.Analysis on the nature of responsibilit.
1. Analysis on the nature of responsibility
It must be clarified that the court's order requiring the illegal subcontractor to bear the responsibility for work-related injury insurance does not equate to confirming the existence of a labor relationship between it and the injured worker in the sense of labor law. This is a statutory vicarious liability arising from illegal behavior and belongs to a special institutional arrangement in the field of social insurance law. Its core logic is "whoever breaks the law, bears the consequences," aiming to solve the problem of labor contractors lacking compensation ability, rather than forcibly establishing a labor contract relationship. Therefore, it is usually difficult for workers to claim labor law rights such as double wages for not signing a labor contract and economic compensation based on this.
2. Exercise of the right of recourse
The law holds illegal subcontractors liable for employment responsibilities, but this does not mean that labor contractors can be exempted from liability. According to Article 3, Paragraph 2 of the "Provisions of the Supreme People's Court on Several Issues Concerning the Trial of Administrative Cases Involving Work-Related Injury Insurance", after assuming work-related injury insurance liability or paying benefits from social security funds, the contracting unit has the right to seek compensation from the organization or individual that actually employs the workers. The design of this right to seek compensation not only ensures that workers can receive timely treatment and compensation, but also forces the contracting unit to carefully select subcontractors through an ex post facto accountability mechanism, achieving a balance between external relief and internal responsibility allocation.
3. Tips for Preventing Employment Risks
For construction companies, compliance is the greatest cost control. They should strictly review the qualifications of subcontractors and prevent contracting projects to individuals or unqualified organizations. At the same time, they should purchase work-related injury insurance or construction accident insurance for all personnel on the construction site, building a multi-layered risk barrier.
For "contractors": they should be aware of the legal risks associated with personally undertaking construction projects. In the event of serious injury or death, they not only face huge civil claims but may also be charged with criminal offenses such as major accident liability. It is recommended to legally undertake labor projects through other means, strengthen safety management, and standardize employment processes.
For migrant workers, it is crucial to enhance their awareness of evidence. In daily work, they should pay attention to retaining WeChat chat records, attendance sheets, wage transfer vouchers, on-site construction photos, and other materials that can prove "who they work for and where they work". After an accident occurs, they should promptly fix the evidence and apply for work-related injury recognition to avoid losing their right to relief due to exceeding the statutory limitation.
This article is republished from the WeChat official account "Shandong Higher People's Court", and we would like to express our gratitude here!