New Interpretation on Labor Laws: Voluntary Waiver of Social Insurance are Void Go back »
2025-09-22 | All chapters
On September 1, 2025, the highly anticipated Interpretation (II) of the Supreme People’s Court on Several Issues Concerning the Application of Law in the Trial of Labor Dispute Cases (hereinafter referred to as “Interpretation (II)”) officially came into effect. Among its provisions, Article 19, with its distinctive position and clear legal consequences, has aroused widespread concern among employers and employees alike.
This Article directly addresses the common practice of “social insurance cash-out” or “voluntary waiver of social insurance”, reiterating the mandatory nature of social insurance contributions. This judicial interpretation puts an end to the long-standing judicial divergence among courts across different regions regarding the legal effect of “voluntary waiver of social insurance” agreements, providing a unified legal application standard.
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Source: D'Andrea & Partners