When China’s Supreme People’s Court issued a new judicial interpretation this month, it was not announcing a sweeping new labor reform. But to millions of workers and employers, it landed like one.
On Aug. 1, the court unveiled its Interpretation II on Labor Dispute Cases, a legal clarification that declares any agreement to forgo mandatory social insurance payments invalid. More crucially, it stipulates that if a worker quits on those grounds, the employer must compensate them financially. The provision takes effect on Sept. 1 and has already sparked heated debate across factories, offices and online forums.
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