Ascertainment of Employment Relationship for Workers in Mobile App Companies

• Citation: jd0295
• Date: 06 April 2016
• Published date: 06/04/2016
• Subject Matter: Labor & Employment Law

2021/2/19 KWM | Ascertainment of Employment Relationship for Workers in Mobile App Companies

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By Liang Yanling(Linda)(Partner) YANG Yi(Assistant Associate)

Rapid development of new enterprises operating via mobile app platforms (“New

Enterprises”) proved the huge potential market demand. On Jan 11, 2016, DIDI

announced that a total of 1.43 trillion orders were placed across all its platforms in

2015. It could not be denied that innovative concept of new enterprises, such as

DIDI, has changed the operational pattern of the traditional market. Employing O2O

(Online to offline) model as a core, mobile internet as a carrier, the new operational

pattern is quickly occupying the market. However, labor management is almost

every new enterprise’s Achilles' heel.

On account of workers’ mobility and flexibility in New Enterprises, and that they

rarely execute an employment contract or pay social insurance premiums, workers

are not covered for any work-related injuries or overtime pay and so on. With the

New Enterprises expanding, labor disputes are growing at the same time.

Under such circumstances, does the relationship between New Enterprises and

their workers constitute employment? Is the traditional thinking of ascertaining an

employment relationship still applicable, or shall innovations be made in the new

era? This article will discuss these issues based on the New Enterprise’s

characteristics, national policy and Chinese and foreign cases.

1. Encouragement and Promotion for New Enterprises

in China

On June 11, 2015, State Council published “Opinions of the State Council on

Several Policy Measures for Vigorously Promoting Public Entrepreneurship and

06 April 2016

Ascertainment of

Employment Relationship

for Workers in Mobile App

Companies