In the past years, many companies provided social insurance through HR agencies for employees at locations where they work or have their Hukou registered rather than at the registered location of the company. However, more and more HR agencies stop providing this service due to the stepped-up supervision of local governments. This puts many companies in a difficult situation. Please find below our overview and insight on this topic and suggestions on how to properly arrange for provision of social insurance for these employees.

According to the PRC Social Insurance Law, a company can only provide social insurance for its employees at its registered location. However, in practice, although signing employment contracts with companies, some employees actually work at locations where the companies do not have registered business units, or some employees, although working for the companies at the registered locations, prefer to have their social insurance provided at the locations where their permanent residence ("Hukou") is registered. Therefore, in the past years, many companies provided social insurance through HR agencies for these employees at the locations where they work or have their Hukou registered.

Starting from July 2020 in Beijing, especially recently, more and more companies, also in other locations, received notifications from the HR agencies that they will no longer provide the service of paying social insurance for employees. This puts many companies in a...

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