3 WAYS TO ENSURE THE INTEREST OF LABOR WHEN ENTERPRISES HAVING SOCIAL INSURANCE DEBT DISSOLVED.

Currently, the operating companies that owe social insurance could solve the rights of employees who are eligible for enjoying social insurance or transfer to other units, enterprises in accordance with the law; but for the enterprise dissolution, bankruptcy or owners fleeing, there is no resolution mechanism for solving workers’ rights in these cases. Therefore, the issuance of resolution mechanisms is essential.

Wang Xiaoying/China Daily

On that basis, there are 03 ways that should be considered to address the rights of workers:

1. Social insurance agencies (SIA) certified social insurance period for employees to leave period as a basis for social insurance settlement or closing insurance book for workers to come other unit.

State budget ensures social insurance debt amount of dissolved enterprises, which after processing enterprises' assets are not sufficient to pay social insurance debt.

2. After handling the assets, enterprises do not have enough money to repay social insurance, the social insurance funds will subject to irrecoverable social insurance debt.

However, two ways above all encourage enterprises to owe social insurance money.

3. SIA certified social insurance period for workers, later if the debt is recovered when handling assets of enterprises, they will confirm the employee complement. At the same time, relevant laws towards the liquidation of the assets of the company dissolution, bankruptcy should be amended so that social insurance funds are given priority before other payments.