The Employment Issues and Legal Practice of the Platform for Inducing Workers to Register as Individual Industrial and Commercial Households

2023-05-29

In recent years, the platform economy has made positive contributions in better meeting consumer demand, stabilizing and expanding employment, and promoting high-quality economic development. With the significant increase in the number of workers relying on internet platforms for employment, the protection of workers' rights and interests is facing new situations and problems. In practice, the phenomenon of inducing workers to register as individual industrial and commercial households and entering into ordinary civil agreements (cooperation agreements or contracting agreements, etc.) to avoid labor laws and regulations is more prominent, and the case of online delivery agent Sun is a typical example. In this case, a logistics company contracted to operate a delivery station on a certain delivery platform, recruited Sun, and signed a written labor contract, establishing a labor relationship between the two parties. More than a year later, a logistics company introduced an information consulting company to "trust" Sun. An information consulting company arranged for Sun to register his business name as an individual business owner of a distribution service department. At the same time, a logistics company signed a contract agreement with a distribution service department (Sun), but the employment method and management mode did not change thereafter. From a formal perspective, a logistics company and a distribution service department (Sun) are equal entities, and both parties enter into a civil agreement to "de labor relations". The rights and obligations of both parties should be adjusted in accordance with civil law. A logistics company has the right to terminate the contracting relationship between both parties according to the civil agreement without assuming any obligations under labor law. However, in essence, after registering as an individual business and entering into a civil agreement, Sun still accepts the employment management of a logistics company. The relationship between the two parties still complies with the provisions of Article 1 of the original Ministry of Labor and Social Security's "Notice on Establishing Labor Relations", that is, subject qualifications (employers and workers should meet the subject qualifications stipulated by laws and regulations) From the attributes (various labor rules and regulations formulated by the employer in accordance with the law are applicable to workers, and workers accept the employer's labor management and engage in paid labor arranged by the employer) and business relevance (the labor provided by workers is an integral part of the employer's business). A logistics company, through a third-party company, allowed Sun to register as an individual business owner and then signed a civil agreement with him, intending to achieve the goal of denying labor relations by denying the subject's qualification and employment agreement. However, in terms of the verdict in this case, the judge is not limited to the appearance of the case, but rather goes from the surface to the inside, eliminates falsehood and preserves the truth, strictly following the provisions of the "Guiding Opinions on Safeguarding the Labor Security Rights and Interests of Workers in New Employment Forms" in the "Guiding Opinions on Safeguarding the Labor Security Rights and Interests of Workers in New Employment Forms" issued by eight departments including the Ministry of Human Resources and Social Security and the Supreme People's Court, which states that the relationship between enterprises and workers should be determined based on employment facts, Analyzing that Sun did not obtain equal market subject status through registering an individual business, thereby denying the effectiveness of the contract agreement, it is determined that there is still a labor relationship between Sun and a logistics company after signing the contract agreement. The significance of this typical case is to clarify that when determining whether there is a labor relationship between a worker and a platform enterprise or its employment cooperative enterprise, the judicial authority should pay attention to correcting the illegal employment behavior of the platform enterprise or its employment cooperative enterprise that uses its own advantageous position to evade the labor law through a legitimate appearance, thereby damaging the legitimate rights and interests of the worker. In fact, the practice of inducing workers to register as individual business owners and then enter into ordinary civil agreements with them is in traditional labor employment

Edit:Ying Ying    Responsible editor:Shen Chen

Source:rmfyb.chinacourt.org

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