Retired Worker Wins One-Child Parent Subsidy of 4,684.80 Yuan in Eastern China

Retired Worker Wins One-Child Parent Subsidy of 4,684.80 Yuan in Eastern China

Case Overview
A retired female worker in Eastern China successfully sued her former employer for refusing to pay a one-time old-age subsidy for parents of an only child. The court ordered the company to pay 4,684.80 yuan, representing 30 percent of the local average annual wage. The case clarifies the obligations of enterprises under provincial family planning regulations.

Case Background and Facts
Ms. Zhang, born in 1956, worked for Qingdao Jinhua Garment Company in Eastern China and retired from the company in May 2006. She gave birth to a daughter in February 1982. In 2010, Ms. Zhang obtained a certificate recognizing her as a parent of an only child. Under relevant provincial regulations, she became entitled to a one-time old-age subsidy from her employer upon retirement. Ms. Zhang repeatedly requested the subsidy from the company, but the company refused to pay. The amount claimed was 4,684.80 yuan, calculated as 30 percent of the 2005 average annual wage of 15,616 yuan for the city where the company was located.

Court Proceedings and Evidence
Ms. Zhang first filed an application for arbitration with the local labor dispute arbitration committee in September 2010. The arbitration committee declined to hear the case, ruling that the dispute fell outside its jurisdiction. Ms. Zhang then filed a lawsuit with the relevant court in Eastern China in September 2010. The court formed a panel of judges and held a public hearing. Ms. Zhang was represented by a lawyer, and the company was represented by its legal counsel. The evidence presented included the arbitration committee’s decision, Ms. Zhang’s retirement certificate, her only-child parent certificate, and statements from both parties. The court also noted the 2005 average annual wage figure for the city.

Court Findings and Judgment
The court held that under the provincial family planning regulations, an enterprise must pay a one-time old-age subsidy to a retired employee who is a parent of an only child. The subsidy equals 30 percent of the average annual wage of the city where the enterprise is located, based on the previous year’s data. The court found that Ms. Zhang met all conditions and that the company had a clear legal obligation to pay. The court rejected the company’s defense that the claim lacked factual or legal basis. The judgment ordered the company to pay Ms. Zhang 4,684.80 yuan within ten days of the judgment taking effect. The company was also ordered to pay court costs and mailing fees totaling 70 yuan. If payment was delayed, the company would be liable for double interest on the debt.

Key Legal Principles
The case applies the principle that statutory obligations of employers under provincial family planning regulations are enforceable in civil courts. The court confirmed that the one-time subsidy is a mandatory benefit for parents of an only child upon retirement. The calculation method is fixed by law: 30 percent of the previous year’s average wage for the city. The court also affirmed that labor arbitration is not a prerequisite for this type of claim, as the arbitration committee had declined jurisdiction.

Practical Insights
This case shows that retired employees can directly sue their former employers in civil court when arbitration is unavailable. Employers should be aware that provincial family planning regulations impose clear financial obligations. Retirees should keep their only-child parent certificate and retirement documents ready. The subsidy amount is tied to local wage data, so claimants should verify the correct annual figure. Companies that delay payment may face additional interest penalties.

Legal References
Shandong Province Population and Family Planning Regulations, Article 31, Paragraph 1: An enterprise shall pay a one-time old-age subsidy equal to 30 percent of the previous year’s average annual wage of the city where the enterprise is located to retired employees who are parents of an only child.

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