Protect Your Business from Work-Related Injury Costs in China

An employee has been injured at your workplace in China. Now what?

Get the Right Insurance First

Before any workplace accident occurs, it’s crucial to ensure your employees are covered by proper insurance. There are two main types of insurance to consider for work-related injuries in China:

1. Mandatory Work-Related Injury Insurance

In China, this is part of the mandatory social insurance system. Employers must make regular contributions based on their employees’ salaries. As a result, in case of injury, the local authorities will pay for the medical treatment.

If you don’t have it, your business might have to pay all medical costs yourself if someone gets hurt.

2. Employers’ Liability Insurance

In addition to the mandatory social insurance, employers should consider obtaining employers’ liability insurance. This type of insurance provides additional coverage for:

• Costs that may not be included in the standard work-related injury insurance
• Potentially costly compensation claims and legal fees that may arise from workplace accidents

By having both types of insurance, you can better protect your business and employees in the event of workplace injuries or illnesses.

Freelancers: Your Responsibility Too

Workplace injury law in China also covers freelancers working on your premises. So, everything on this page applies to them, too.

However, since you can’t pay social insurance for them, your company will be footing the medical bill if they get injured at your workplace.

Therefore, employers’ liability insurance is absolutely necessary if you have employees, freelancers, or contractors working on your premises.

What to Do If Someone Gets Hurt

1. Tell the authorities:
   • Report the accident to the local work and social security office within 30 days. The local Bureau for Human Resources and Social Security is the government agency responsible for handling these reports.
   • Failing to report within the 30-day timeframe can result in the employer being liable for medical costs that would otherwise be covered by social insurance.
2. Ask for an official assessment:
   • Within 30 days of the employee going to the hospital, ask the Bureau for Human Resources and Social Security to check if it’s a work injury.
   • Give them proof of employment, doctor’s notes, and details about how and when the accident happened.
3. Keep paying the employee:
   • During the assessment, which can take around 60 days, you must continue paying your employee’s salary.
   • If it’s found to be a work injury, you must keep paying the employee’s full salary. You might need to do this for up to 12 months while they get treatment.

What Are You Liable for?

Employers in China are typically liable for:

Injuries at work during work hours

• This includes injuries while performing job duties
• Injuries that happen while preparing for work or finishing up
• Injuries from workplace violence or attacks
• Accidents during work-sanctioned breaks or meals on company premises

Occupational illnesses

• Diseases caused by exposure to work-related hazards
• If diagnosed after leaving the job, employees can apply for work injury status within a year of diagnosis
• This only applies if they haven’t worked in a similar hazardous job since leaving or retiring

Injuries on business trips

• To count as a work-related trip, the employee must be sent by their employer
• The injury must be related to work activities

Commute-related injuries

• Injuries that occur during the direct commute between work and home
• Important: The commute must be direct. For example:
  • If an employee is injured on their way home directly from work, it’s covered
  • If they stop at a restaurant to meet a friend after work, and are injured after leaving the restaurant, it’s NOT covered
  • However, if they’re injured on the way to the restaurant directly after leaving work, it IS covered

Important: China tends to favor workers in injury cases, even when company policies are violated. If somebody injures themselves while smoking in your factory, you're still liable.

Need Help With a Work-Related Injury in China?

In most cases, as long as you have made social insurance contributions and have employer’s liability insurance, you should be covered in most situations.

However, if you prefer a risk-free approach, consider managing your China team through our China Desk platform. We handle all the complexities of Chinese employment law, including work-related injury claims, allowing you to focus on your business goals.