Interregional Employment: Challenges revealed to“Social Insurance Paid Through a Third party”
摘要
Interregional employment is an increasingly common arrangement in practice. Interregional employment means that the domicile of employer differs from the location where employment contract is performed. The difference is generally caused by the feature of employer’s business. Employees would be hired by employer registered in Beijing, while their employment contracts are performed in other cities. In interregional employment, one practical problem that employer is frequently faced with is whether to pay social insurance for employee in the city where employer is located or city where employment contract is performed. It is a quite easily-answered question from legal perspective, as the law expressly provides that social insurance should be paid in the place of residence of employer. As a temporary solution, the arrangement abovementioned is favorable to employee, thus rarely causes disputes. However, “social insurance paid through a third party” is associated with potential risks and it has started to be banned by local regulations in some places.
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