12 May, 2016
The Ministry of Human Resources and Social Security issued new opinions on Matters Relating to the Implementation of the Regulation on Work Related Injury Insurance on March 28, 2016, which supplemented the April 2013 Opinions on this topic. The latest Opinions (“Opinions (II)”) provide helpful clarification on several contentious issues on the implementation of the work injury regulations.
One point addressed in the Opinions (II) is regarding the employer’s liability when engaging employees at or above retirement age. Where an employee who has attained mandatory retirement age, but not yet completed retirement formalities or started receiving pension benefits, suffers a work injury or an occupational illness while still working for the original employer after reaching the retirement age, the employer shall bear liability pursuant to work injury insurance regulations. However, even if the above procedures are completed, the Opinions (II) does not say that retired persons would be covered by the work injury insurance system (unless contributions are made to a “project insurance” system, which is only applicable to the construction industry), so companies in most industries would appear to be liable for any costs related to a retired person’s work injury.
The Opinions (II) also clarify when an employee is considered to be engaged in work for the employer for the purpose of determining when a work injury occurs. It provides that where the employee joins the activities organized by or assigned by the employer, this shall be categorized as ‘work related’ unless the activity is completely irrelevant to work. It also confirms that time reasonably spent by an employee commuting between the work place and their place of residence shall be deemed as work related travel.
Key Take-Away Points:
In order to minimize the risk of incurring work injury liability when engaging workers at or above retirement age, it is advisable for employers to obtain commercial insurance for such worker to cover any potential liability.
For further information, please contact:
Jonathan Isaacs, Baker & McKenzie
jonathan.isaacs@bakermckenzie.com
