If a worker is injured in a project subcontract, who can they seek compensation from?
Compiled from: China Court Network
Case Review
Company A contracted a mobile transmission engineering project and later subcontracted the project to an individual, Lu, signing a "Labor and Technical Service Contract." Lu hired Yang to perform line-stringing work. While Yang was working outdoors on the project, a utility pole broke, causing him to fall and sustain injuries, diagnosed as a left clavicle fracture and a left second rib fracture. Yang subsequently applied for work-related injury recognition to the human resources and social security department of Dazu District, Chongqing. After review, the department determined that Yang's injury was work-related, with Company A bearing the primary responsibility for the injury.
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Company A argued that Yang was a temporary worker hired by Lu, with Lu responsible for arranging work hours, work content and management, and wage payments, thus forming an employment relationship with Lu. Since no labor relationship existed between Yang and Company A, Company A should not bear the primary responsibility for employment. It therefore filed a lawsuit seeking to revoke the work-related injury recognition decision.
Regulations on Work-Related Injury Insurance
Article 14: An employee shall be recognized as having a work-related injury under any of the following circumstances:
(1) Suffering an injury from an accident during work hours and at the workplace due to work-related reasons;
……
[1] Provisions of the Supreme People's Court on Several Issues Concerning the Trial of Administrative Cases Involving Work-Related Injury Insurance
Article 3
[2] Where the social insurance administrative department determines that the following entities are the units responsible for work-related injury insurance, the people's court shall support such determination:
(1) If an employee has established labor relations with two or more entities, the entity for which the employee was working at the time of the work-related injury accident shall be the unit responsible for work-related injury insurance.
(2) If an employee dispatched by a labor dispatch unit suffers work-related injury or death while working at the employing unit, the dispatch unit shall be the unit responsible for work-related injury insurance.
(3) If an employee assigned by a unit to work at another unit suffers work-related injury or death, the assigning unit shall be the unit responsible for work-related injury insurance.
(4) If an employing unit, in violation of laws and regulations, subcontracts contracted business to an organization or individual without the qualifications for employing workers, and an employee hired by such organization or individual suffers work-related injury or death while performing the contracted business, the employing unit shall be the unit responsible for work-related injury insurance.
(5) Where an individual affiliates with another entity to engage in external operations, and the personnel employed by such individual suffer work-related injuries or fatalities, the affiliated entity shall be the unit responsible for work-related injury insurance.
(6) After the unit responsible for work-related injury insurance as specified in items (4) and (5) of the preceding paragraph assumes compensation liability or the social insurance agency pays work-related injury insurance benefits from the work-related injury insurance fund, it has the right to seek recourse from the relevant organizations, units, and individuals.
[1] Opinions of the Ministry of Human Resources and Social Security on Several Issues Concerning the Implementation of the Regulations on Work-Related Injury Insurance
[2] Article 7
[2] If a contracting entity with the qualifications of an employer, in violation of laws and regulations, subcontracts or assigns contracted work to an organization or individual without such qualifications, and a worker recruited by that organization or individual suffers work-related injury or death while performing the contracted work, the contracting entity with the qualifications of an employer shall bear the work-related injury insurance responsibilities that the employer is legally obligated to assume.
[1] Court Opinion
[3] In this case, Company A illegally contracted the project to Lu, an individual without the qualifications of an employer. After Lu undertook the project, he hired Yang to work on the construction site, and Yang was injured during work. According to the above provisions, Company A shall bear the primary responsibility for work-related injury insurance for Yang's injury.
[1] The author's perspective
[4] Some companies or engineering teams often subcontract work layer by layer for convenience or to evade responsibility, and workers on construction sites often lack professional legal awareness, making them prone to deception. Once a work-related injury occurs, workers may be passed back and forth between contractors and construction companies, unable to find the party ultimately responsible for compensation. Such cases cannot be generalized in judicial practice, as they involve multiple legal relationships such as project subcontracting, labor services, and work-related injuries, requiring case-by-case analysis. The author suggests that when workers encounter such situations, they must first ensure their own health while promptly consulting professional lawyers to protect their legal rights.
