By Yin Juquan and Song Miao King & Wood Mallesons’ Commercial & Regulatory Group
Labor disputes tend to occur among the contractor, the affiliated party, the lessor and lessor of business license in cases involving illegal contracting or subcontracting to employers without entity qualifications. To be specific, it’s worth pondering over who takes responsibility once occupational injury occurs if in the process of construction, the construction unit subcontracts partial duties to employers without entity qualifications. The above matter involves sorting legal relations and attribution of liability. Court decisions vary from case to case. On 1st December 2015, the Shenzhen Intermediate Court issued “Judgment Guideline of Shenzhen Intermediate Court on Trial of Labor Dispute Case” (hereinafter as “Judgment Guideline”), with “Explanation on the ‘Judgment Guideline on Trial of Labor Dispute Case’” (hereinafter as “Explanation”) attached as elaborations and also provisions regarding the aforementioned matter.
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