By King & Wood’s Labor & Employment Group

The State Administration of Work Safety passed the Decision on the Amendment to the Interim Punishment Rules for the Regulations on Reporting and Investigating Work Safety Accidents (hereinafter the "Decision") on August 29th, 2011. The Decision will be effective as of November 1st, 2011.

 According to the Decision, where the employer who is liable for work safety accidents (hereinafter the "liable employer") lies about or conceals the work safety accidents, it will be subject to a penalty of RMB 2 million; meanwhile, if the liable employer delays the rescue, or causes the accident enlargement, or interferes with the investigation, the liable employer will be fined RMB 3 million, and in serious cases where the means of the liable employer is abominable, such employer will be fined RMB 5 million.

 The Decision also provides that if the main person in charge of the liable employer, or any direct responsible person in charge or any other direct responsible person lies about or conceals the accident, or escapes after the accident happened, that person will be subject to a fine equivalent to his/her annual income of the last year.

King & Wood’s Note: In reality, work safety accidents will usually cause casualties or economic damages; and sometimes the losses could be even worse if the rescue is delayed due to the liable employer’ s lying or concealment of the accidents. To minimize the work safety accidents and protect employees’ safety and health, the Decision raises the fine on the liable employer and its relevant persons in charge.