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Case: an allowance in place of social insurance

Scope: Mainland China · location not specified in case summarySource checked: 3 October 2026
Published case · facts matterSource published: 1 August 2025Current guidanceCoverage / exclusions: The case applies to employment relationships in Mainland China. The specific facts concern a worker employed by a security company. The rule that agreements not to pay social insurance are invalid applies generally to employers and workers in China.

An official typical case from the Supreme People's Court examines an agreement replacing social-insurance contributions with an allowance. The court held such an agreement invalid, and the worker was entitled to economic compensation after terminating employment on that ground.

What happened

In the published case (Case Six), the employer did not make social-insurance contributions and paid an allowance instead. The worker terminated the employment contract on that ground. The court held the agreement invalid and supported the worker's claim for economic compensation.

How to read the outcome

Use Case Six in the original publication to review the facts and reasoning. A case outcome is not a substitute for checking your own evidence. The case confirms that social insurance contributions are a statutory obligation that cannot be waived by agreement.

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Official source

Supreme People’s Court · 最高人民法院

This is our reading summary, not an official translation. The linked source is authoritative.

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