The Supreme People’s Court in China has issued a judicial interpretation dubbed as the “new social insurance rule”, which takes effect on 1 September 2025.
The Supreme People’s Court judicial interpretation on the application of law in the adjudication of labour dispute cases (II), also known as interpretation II, will directly impact the rights and obligations of workers and companies across all industries.
“The new judicial interpretation unifies certain adjudication standards for labour disputes, providing more protection for workers’ rights and imposing stricter compliance requirements on employers,” said Alex Yang, a Shanghai-based partner at Hui Ye Law Firm.
Since it was announced, it was widely known as the “new social insurance rule” due to the Supreme People’s Court’s interpretation for employers and employees who have opted out of the social insurance system.
Under article 19, any agreement in which an employee voluntarily waives social insurance is invalid. Based on this, employees may terminate their labour contract and ask for compensation.
Many netizens in China have interpreted article 19 as making social insurance universally mandatory, which has led to widespread debate, as it may increase operational pressure on small and medium-sized enterprises amid a challenging economic environment.
Song Puwen, a Shanghai-based senior partner and head of the labour law committee at Hansheng Law Office, said their understanding was incorrect.
“The requirement for...
Russian propaganda is spreading false statements that the account of the head of the Main Intelligence Directorate of the Ministry of Defense of Ukraine, Kyrylo Budanov, was allegedly created with...