Construction Worker Wins 85,000 Yuan in Workplace Injury Lawsuit Against Uninsured Contractor

Construction Worker Wins 85,000 Yuan in Workplace Injury Lawsuit Against Uninsured Contractor

Case Overview
A construction worker who suffered a workplace injury was awarded over 85,000 yuan in compensation after the court found that the general contractor, who failed to provide workers compensation insurance, was liable for all工伤 benefits. The case also addressed the employer’s failure to sign a written labor contract, resulting in additional damages for double wages. The court rejected the contractor’s argument that the worker was an employee of a subcontractor rather than the main company.

Case Background and Facts
In July 2009, Mr. Su began working at a construction site in Eastern China operated by a construction company. He performed decoration work at a residential project known as “Spring Water Village.” The construction company did not sign a written labor contract with Mr. Su and did not enroll him in any social insurance program, including workers compensation insurance.

On October 4, 2009, Mr. Su suffered an accidental fall while performing his duties at the worksite. He was hospitalized for 21 days, first at a local hospital and then at an orthopedic hospital. His medical expenses were initially paid by the construction company, though Mr. Su personally paid 7,000 yuan which was later reimbursed. After discharge, Mr. Su continued outpatient treatment and was unable to return to work.

On November 12, 2009, the local labor and social security bureau issued a formal determination recognizing Mr. Su’s injury as a work-related injury. The application for this determination was actually submitted by the construction company itself. Subsequently, the local labor ability appraisal committee rated Mr. Su’s disability as Grade 8. The construction company challenged this rating and requested a re-appraisal, which resulted in a Grade 9 disability rating with no nursing dependency.

Court Proceedings and Evidence
Mr. Su filed a labor arbitration claim seeking dissolution of the labor relationship and various benefits totaling over 209,000 yuan. The arbitration commission partially granted his claims, awarding approximately 69,000 yuan. Both parties were dissatisfied with the arbitration award. Mr. Su filed a lawsuit in court, and the construction company also filed a separate lawsuit challenging the existence of any labor relationship between them. The court consolidated both cases for trial.

During the proceedings, the construction company argued that it was merely the general contractor and that the actual employer was a labor subcontractor. It claimed Mr. Su was hired by a work team leader named Mr. Yang and had no direct employment relationship with the company. The company also disputed Mr. Su’s claimed monthly salary of 6,200 yuan.

Key evidence presented included: a work identification card issued by the construction company, the official工伤认定 certificate, medical records and invoices, disability appraisal reports, and the arbitration award. The court found these documents sufficient to establish the employment relationship.

Court Findings and Judgment
The court held that the work identification card and the工伤认定 certificate clearly established a labor relationship between Mr. Su and the construction company. The company’s claim that no employment relationship existed was rejected for lack of evidence.

Regarding Mr. Su’s claimed monthly salary of 6,200 yuan and nursing expenses, the court found insufficient supporting evidence and instead calculated benefits based on the preceding year’s average local wage of 2,272.67 yuan per month.

The court denied Mr. Su’s claim for economic compensation for termination of the labor relationship, finding that the legal conditions for such compensation were not met under relevant labor law provisions.

The court ordered the following compensation: medical expenses of 296.5 yuan, hospitalization meal allowance of 220.5 yuan, transportation costs of 300 yuan, appraisal fees of 300 yuan,停工留薪期 wages of 13,636.02 yuan (6 months), one-time disability subsidy of 18,181.36 yuan (8 months), and one-time medical and employment subsidies of 36,362.67 yuan. Total: 69,297.05 yuan.

Additionally, because the company failed to sign a written labor contract, it was ordered to pay double wages for the period from August 2009 to February 2010, amounting to 15,904 yuan. The total judgment was 85,201.05 yuan.

Key Legal Principles
The court applied the principle that when an employer fails to enroll a worker in workers compensation insurance, the employer bears full liability for all工伤 benefits that would otherwise be covered by the insurance system. The court also reaffirmed that a formal工伤认定 certificate is strong evidence of an employment relationship, and an employer cannot later deny the relationship after having initiated the工伤认定 process. The requirement for written labor contracts was strictly enforced, with the court ordering double wages for the period of non-compliance.

Practical Insights
This case demonstrates the importance for construction companies to properly insure all workers, including those working through subcontractors. Employers who apply for工伤认定 on behalf of injured workers will be bound by that determination and cannot later deny the employment relationship. Workers should retain evidence such as work identification cards, medical records, and official determinations to support their claims. The case also highlights that courts will calculate benefits based on average local wages when the worker cannot prove actual earnings.

Legal References
Labor Law of the Peoples Republic of China, Articles 10 and 46; Regulations on Work-Related Injury Insurance (2010 Revision), Articles 2, 29, 31, and 35; Implementation Opinions of the Peoples Government of Sichuan Province on the Regulations on Work-Related Injury Insurance, Article 8; Civil Procedure Law of the Peoples Republic of China (2007 Revision), Article 64.

Disclaimer
This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for specific legal matters.