ILOWorkingPaper126

September/2024

、Resolutionoflabourdisputes

involvingnewformsofemploymentinChina

Authors/KunHuang,YuxiangSun

Copyright?InternationalLabourOrganization2024

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01ILOWorkingPaper126

Abstract

Basedonthestudyofarbitrationandjudicialcasesinvolvingnewformsofemployment,thisworkingpaperidentifiesandexaminesnotablecharacteristicsofdisputesinvolvingnewformsofemployment.Thisworkingpaperfoundthatthenumberofsuchdisputesisnotlargecom-paredtothetotalnumberoflabourdisputesinChinabutisgrowingandmainlyinvolvingin-stantdeliverysector.Theclaimsconcentratedoncompensationforwork-relatedinjuriesalongwithrecognitionofanemploymentrelationship.Employersaredifficulttoidentifyduetomul-tipleoutsourcinganddigitalevidencewhicharemoreprevalentthaninotherlabourdisputes.Combiningananalysisofanumberofactualcasesandinterviewswithlabourdisputearbitra-tors,thepaperalsofoundthatthe“referencebasis”forjudgmentsinthesedisputesistheNoticeontheRecognitionofEmploymentRelationships(issuedbytheformerMinistryofLabourandSocialSecurity,DocumentNo.laoshefa[2005]12,hereafterreferredtoastheNotice12).

Furthermore,thekeyconsiderationwhendeterminingtheexistenceofemploymentrelation-shipscentresaroundascertainingtheactualrealityofsubordination,whilealgorithms,instantmessagingtoolsandtheuseoflabourintermediariesconstituteanewtypeoflabourmanage-mentpractices(ornewsetoftools)ofplatformcompaniesinChina.Thisreportanalysessometypical“methods”usedbysomeplatformcompaniestoavoidemploymentrelationshipsandthecorrespondingeffortsto“reveal”therealityofemploymentrelationshipsinthecourseofexamin-inganddeterminingthedisputes.Examiningandunearthinginconsistenciesbetweenthe“em-ploymentfacts”andthesemblanceofthecontractoragreement,aswellastheexistenceofef-fectivemanagementrunningthroughlayersofsubcontractingandfalseself-employment,werethecentraltasksoflabourdisputeresolutionpractitionersinmostofthedisputes.Theproblemofevidenceinthehandlingofcasesinvolvingnewformsofemploymentisalsodiscussed.ThereportexaminestheproblemsthatmayariseintheimplementationoftheGuidingOpiniononProtectingtheLabourRightsandInterestsofWorkersinNewFormsofEmployment.Italsoex-plorespossiblemeasurestorespondeffectivelytothedifficultiesandchallengesandpresentssuggestionsregardingdisputeresolutionprocedures,judgmentrulesforclassifyingtheemploy-mentstatusoftheworker,andrulesforthedistributionofburdenofproof.

Abouttheauthors

KunHuangistheDirectoroftheResearchOfficeofLabourDisputesoftheChineseAcademyofLaborandSocialSecurity(CALSS).SheisanAssociateProfessorwithadoctorateinEconomicLaw.Shehasnearly20yearsofresearchexperienceintheareasoflabourrelationsandlabourlawandhasledmorethan15policy-orientedresearchprogrammeontopicsthatincludeear-ly-stageinterventionandpreventionoflabourconflicts,capacitybuildingoflabourinspector-ates,atypicalemployment,flexibleworkinghours,enforcementandinterpretationoflabourcontractlaw,legislationofbasiclabourstandards,responsiblelabourpracticesinglobalsupplychain,goodpracticesofcollectivenegotiationinChinaandotherrelevantissues.Shehaspub-lishedextensively,includingChinaLabourLaw(asco-authorwithWangQuanxing),anationalteachingmaterialforlawschools.

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SunYuxiangistheDeputyDirectorandAssociateResearcheroftheResearchOfficeofLabourDisputesoftheCALSS.Hercurrentresearchfocusesprimarilyonlabourdisputemediationandarbitration,labourrelationsinprivateenterprises,andlabourclausesinfreetradeagreements.

03ILOWorkingPaper126

Tableofcontents

Abstract

01

Abouttheauthors

01

Acronyms

07

、

1

Researchbackground

Researchquestions

Researchcontentsandmethods

08

08

09

、

2

Trendandfeaturesoflabourdisputesinnewformsofemployment

Featuresofdisputesinvolvingplatformwork

Thecasesrepresentsasmallproportionofallkindsofdisputes

Increasingnumberofcases

Growingconvergenceondisputeissues

Mostcasesoccurinthetakeawaydeliverysector

Identifyingtherealemployer:theveiledpresenceofplatformcompanies

Handlingcasesoflabourdisputesinvolvingnewformsofemployment

11

11

11

12

13

14

15

16

、

3Thelegalbasisforassessingemploymentstatusincasesinvolvingnew

formsofemployment18

DocumentNo.12asaneffectivelegalbasisforassessingemploymentstatus18

ThelegalstatusandmaincontentsofDocumentNo.1218

DifferentviewsontheapplicabilityofDocumentNo.1219

Disputesettlementproceedings:assessingemploymentstatusonthebasisoftherecogni-

tionofasubordinationrelationship22

Elementsofnewtypesoflabourmanagement24

Controlthroughalgorithms24

Offlinecooperatingentities26

Instantmessagingtools:Avitalcomponentoftheworkprocess27

Thetypicalpatternsofdisguisedemploymentrelationshipsandrelateddisputeproceedings28

Usingcontractsotherthanemploymentcontracts:Inconsistencybetweenthefactsofemploy-

mentandthecontract28

Multiplelayersof“subcontracting”andtheextensivenetworksof“cooperating”companies:

Whoistheemployerandresponsibleforwhat?30

Falseself-employment33

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、

4

Evidencefortheresolutionoflabourdisputesinnewformsofemployment

35

、

5

PossibleimpactsoftheimplementationoftheGuidingOpinion

ThelegaleffectoftheGuidingOpinionanditslimitations

ThemaincontentsoftheGuidingOpinion

ThepositiveimplicationsoftheGuidingOpiniononemploymentpractice

TheimpactoftheGuidingOpinionofdisputesinvolvingnewformsofemployment

Reaffirmationofrightsandinterestsmaytriggeranincreaseinrightsdisputes

Thedefinitionof"notfullyconformingtothesituationofestablishinganemploymentrela-

tionship"andthecriteriaforestablishmentof"employmentfacts"arenotclear.

Lackingclarityonremediesfortherightsofworkersworkinginarrangements"notfullycon-

formingtothesituationofestablishinganemploymentrelationship"

37

37

38

38

39

39

40

41

、

6

Suggestions

Makingmediationandarbitrationaccessibleforlabourdisputesofalltypesofwork

Primacyoffacts:thecentralprincipleinassessingemploymentstatus

Settingrulesforburdenofproofallocation

44

44

45

47

Annex1:LabourdisputebetweenTangRuitingandBeijingYishengHealthTechnologyCo.,Ltd.49

Annex2:Interviewoutline54

References55

Acknowledgement57

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ListofTables

Table1.Claimsrequiringdeterminationoftheexistenceofanemploymentrelationshipac-

countedforabout50percentofallcasesinvolvingnewformsofemployment13

Table2.MaincontentsofDocumentNo.1219

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ListofBoxes

Box1:Specificrequirementsforthesettlementofdisputesandmediationandarbitrationin

province-leveldocumentsimplementingtheGuidingOpinion43

Box2：Suggestionsemergingfromstudies48

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Acronyms

AB5CaliforniaAssemblyBill5

GuidingGuidingOpiniononProtectingtheLabourRightsandInterestsofWorkersin

OpinionNewFormsofEmployment

ILOInternationalLabourOrganization

MOHRSSMinistryofHumanResourcesandSocialSecurityofChina

SAMRStateAdministrationforMarketRegulationofChina

Notice12TheNoticeontheRecognitionofEmploymentRelationships(issuedbythe

formerMinistryofLabourandSocialSecurityofChina,MOHRSSDocumentNo.12,2005)

08ILOWorkingPaper126

、1Researchbackground

Researchquestions

Therapiddevelopmentoftheplatformeconomyinrecentyearshascreatedanewwaveofem-ploymentopportunities,leadingtoadramaticincreaseinthenumberofworkersengaginginplatformeconomy.Suchworkersincludeon-demanddeliveryworkers,ride-hailingcardrivers,truckdriversforlogisticscompaniesandinternetmarketers–allofwhomrelyoninternetplat-formsforemployment.InChina,theyareclassifiedasNewFormsofEmployment.Thedefinitionof“NewFormsofEmployment”comesfromtheinterpretationofthe"ThreeNewEconomies"bytheNationalBureauofStatistics,whichreferstothenewlinks,newchainsandnewformsofactivitiesderivedfromexistingindustriesandfieldsrelyingontechnologicalinnovationandapplicationinresponsetovaried,diversifiedandpersonalizedproductorserviceneeds.The“ThreeNewEconomies”arecharacterizedby:internet-basedbusinessactivities;innovationofbusinessprocesses,servicemodesorproductforms;andmoreflexibleandefficientpersonal-izedservices(NBS,2023).

Newformsofemploymenthavegivenrisetonewproblemsintheprovisionoflabourprotectionwithregardtothelabourrights,interestsandsocialsecurityconcernsofworkers.These“prob-lems”havebeenbroughttolightbyanincreasingincidenceoflabourdisputesinvolvingplat-formworkers.Disputecasesrelatedtoplatformworkersareprovingtobechallengingfortheexistentdisputeresolutionandjudicialpractices.Theneedforclearguidanceinthehandlingofsuchcaseshasbecomeincreasinglyurgent–somethingthatrequiresin-depthandextensiveresearchandtheformulationofrelevantpolicydocuments.InJuly2021,theMinistryofHumanResourcesandSocialSecurity(MOHRSS)andeightotherrelatedcompetentauthoritiesjointlyissuedtheGuidingOpiniononSafeguardingtheLabourandSocialSecurityRightsandInterestsofWorkersengagedinNewFormsofEmployment(hereafterreferredtoastheGuidingOpinion).This“document”addressesthequestionofworkersinnewformsofemploymentlinkedtoin-ternetplatforms.TheGuidingOpinionrequeststhatthe“courtsatalllevelsandlabourdisputemediationandarbitrationinstitutionsshouldstrengthenguidanceonthehandlingoflabourdisputes,coordinateworkwitheachother,determinetherelationshipbetweenenterprisesandworkersaccordingtothefactsofemployment,andhandlecasesoflabourrightsandinterestsofworkersemployedinnewformsinaccordancewiththelawandregulations”.

Thedisputeresolutioninstitutions,nottomentiontheplatform-basedenterprisesandworkers,respondedtotheGuidingOpinionwithgreatinterest.Inparticular,thereferenceintheGuidingOpiniontoworkerswho“donotfullyconform”withthesituationofestablishinganemploymentrelationshipbecamethefocusofattention.Itemergedthatthequestionsregardingthecrite-riaforrecognizingsuchworkersandhow“rights”and“protection”wouldbeextendedtothem–thatis,whatthecriteriawouldconsistofandwhattheaccompanying“rightsreliefchannels”

wouldbe–areallinneedoffurtherstudyandclarification.Inthiscontext,theresearchobjectivesofthisstudyareto:

●understandthebasicsituationofarbitrationandjudicialcasesrelatedtonewformsofem-ploymentinChinainrecentyears;

●summarizethemethodsemployedbythecompetentauthoritiesin-handlingsuchcases;

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●identifychangesinthecasesafterthereleaseoftheGuidingOpinionandthecorrespondingmeasurestakenbythecompetentauthorities;

●examinetheinadequaciesofsubstantivelawandprocedurallawintheexistinglegalframeworkindealingwithlabourdisputesregardingnewformsofemployment,aswellasthechallengestotheexistingsystemindealingwithlabourdisputesinvolvingnewformsofemployment;

●exploreanddevelopsuggestionsregardingthemeasurestodeterminetheexistenceofanemploymentrelationshipinnewformsofemploymentandtoeffectivelyprotectworkers’rightsandinterestsfromtheperspectiveoftheproceduresandpracticesoflabourdisputeresolution;and

●proposerecommendationsonhowtoregulatenewformsofemploymentandrespondtothenewchallengesthroughimprovedregulatoryframeworkandpolicies.

Researchcontentsandmethods

Basedontheaboveresearchobjectives,thisstudyexaminesthepracticeofhandlinglabourdisputesarisingfromnewformsofemployment,themethodsadoptedbythevariouslabourdisputeresolutioninstitutionsforhandlingthesedisputes,includingbutnotlimitedtothecri-teriafordeterminingtheexistenceofanemploymentrelationshipandrecognizingsubordina-tion,thedivisionofburdenofproof,andtheallocationofresponsibilitytotheplatformsandaf-filiatedcompanies.Keytothisanalysiswastheexaminationofjudicialorarbitrationdecisions,supplementedbyinterviewswithfront-linedisputeresolutionpractitionersandareviewoftherelevantlawsandjurisprudence.

Thelabourdisputecasesinvolvingnewformsofemploymentinthisstudyaremainlyconfinedtothosegroupsofworkers(orformsofemployment)identifiedintheGuidingOpinion,thatis,on-demanddeliveryworkers(excludinggeneralcouriers),ride-hailingcardrivers,truckdriversandinternetmarketers,whoallrelyonaninternetplatformforemployment.

Theresearchmethodsofthisstudywerebasedmainlyoncasestudies,supplementedbyalit-eraturereview,interviewsandfieldresearch.Intermsofcasestudies,typicalarbitrationandju-dicialcasesinvolvingnewformsofemploymentwereselected,particularlyinregardtoon-de-manddeliveryworkandcar-hailingservices.Arbitrationcasesweremainlydrawnfromcasesidentifiedorpublishedbylocalarbitrationcouncils;andlitigationcasesweremainlyselectedfromtheChinaJudgmentsOnlinewebsite1.

Structuredinterviewswereconductedwith37arbitratorsandfocusedontwoareasofconcern.Onewaslearningabouttheoverallsituationofcasespertainingtonewformsofemployment,includingthenumberoflabourdisputes,thetypeofemployment,thedifferencefromtraditionallabourdisputecases,themethodsofestablishingemploymentrelationships,andthecriteriaandsuggestionsforjudicialdecisionsregardingthecases.Theothersectioninvestigatesthespecificconceptsandapproachesthatarbitratorshaveconsidered,formulated,andexperimentedwithduringtheirworkinresolvingcertaincases.Theinterviewoutlineisincludedintheannexes.

Fortheliteraturereview,thisstudyexaminedtherelevanttheoriesonthedeterminationofem-ploymentrelationships,relevantcasesinsomecountriesorregions,thecriteriausedforthe

1Since2014,theSupremePeople'sCourthasmaintainedawebsite——ChinaJudgmentsOnline(中國(guó)裁判文書(shū)網(wǎng)，https://wenshu./)——topublishtheeffectivejudgmentinstrumentsofthepeople'scourtsatalllevels.

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determinationofemploymentrelationshipsinjudicialdeliberation,andexistingresearchfind-ingsofjudicialcasesinvolvingnewformsofemploymentinChina.

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、2Trendandfeaturesoflabourdisputesinnewformsofemployment

Disputesinvolvingnewformsofemploymentcan,atfirst,bedistinguishedbytheinstitutionthathasbeeninvokedintoaction.Somecasesarelodgeddirectlywith–oraccepteddirectlyby–thecourtoffirstinstance(mostlyatthe“district”level)asordinarycivilcases.Suchcasesareusuallyframedascivilcontractdisputesand/ortortdisputes.Othercasesarelodgedwiththe“l(fā)abourdisputesettlement”bodies,namely“l(fā)abourarbitrationcommissions”.Thesecasesareframedas“l(fā)abourdisputecases”,wherelabourdisputesettlementproceduresareapplied.Suchcasesareusuallyrequestsforconfirmationoftheexistenceofanemploymentrelationship,therecoveryoflabourremunerationandovertimepay,andtheclaimforoccupationalinjuryinsur-ancebenefitsorcompensation.

Thefollowinganalysisexaminesbothofthese“types”ofdisputesarisingfromnewformsofemployment.Thisstudyexaminesarangeofcasesthatareavailablefromtheopenjudgmentdocumentsofcourtsatalllevels.

Thetwodifferenttypesofinstitutionsexaminecasesonthebasisofexistingproceduresas,atpresent,therearenospecialprovisionsontheproceduresforhandlingdisputesrelatedtonewformsofemployment.Civildisputesinnewformsofemploymentaresubjecttotwofinaltrials,while“l(fā)abourdisputes”–thosethatarelodgedwiththelabourarbitrationcommissions–innewtypesofemploymentaresubjecttoonearbitrationandtwotrials.2Therearenodifferencesinhandlingproceduresbetweenlabourdisputecasesrelatedtonewformsofemploymentandordinarylabourdisputecases,andbetweencivildisputecasesrelatedtonewformsofemploy-mentandordinarycivildisputecases.

Featuresofdisputesinvolvingplatformwork

Disputecasesthatarisefromplatformworkarecharacterizedbythefollowingfeatures:

Thecasesrepresentsasmallproportionofallkindsofdisputes

Chinahasalargenumberofworkersengagedinnewformsofemployment.Theestimateforthetotalnumberrangesfrom50millionto84million,dependingonthesource.Workintheplatformeconomyhasbeenasubjectofwideandextensivediscussioninthenewsmediaandacademicresearch.However,accordingtotheresearchandinterviews,theactualnumberofla-bourdisputecasesarisingfromnewformsofemployment–thatis,thosebroughttotheatten-tionofarbitrationandcourts–isnotlarge,accountingforasmallproportionofthetotalnum-beroflabourdisputecases.Furthermore,thefrequencyofdisputeswithinthe“cohort”ofnewformsofemploymentisrelativelylowcomparedwiththatamong“ordinary”workers.Withinthecurrentstatisticalsystemandintermsoftheavailabilityofdata(aswellasthecurrentsystem

2Thewholelabourdisputeresolutionsystemiscomposedofnon-compulsorymediationandcompulsoryarbitrationandiftheappli-cantsand/ordefendantsarenotsatisfiedwiththeverdictissuedbythelabourarbitrationcommittee,theymayappealtoagrass-rootslevelcourtwithinthetimelimitprescribedbylawexceptforsomekindsofcasesthatmaybeterminatedinarbitrationandwillbeacceptedascivilcasesinatrialsystemfollowingatwo-hearingapproach.

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ofdocumentation),itisdifficulttoobtainpreciseinformationonthetotalnumberandtypesofcasesarisingfromnewformsofemployment.

Intermsoflitigation,from2018to2020,preliminarystatisticsshowthatBeijing,Shanghai,andGuangdongandZhejiangprovincesclosedmorethan2,000casesofcivildisputesrelatedtonewformsofemployment,involvingtakeoutdeliveryandexpressdelivery,atthecourtsoffirstinstance.Thenumberofclosedcaseshasbeenincreasingannually,withdisputesconcentrat-edintwomajorcategories:infringementdisputesandlabourdisputes(71percentand29percentrespectively).34However,comparedtothetotalnumberoflabourdisputecasesduringthesameperiod,thisaccountsforonlyaverysmallpercentage.In2020,1.09millionlabourdisputecaseswereacceptedbylabourdisputearbitrationcommitteesatalllevelsacrossthecountry（MOHRSS,2020）and440,000labourdisputeswerereceivedbythepeople'scourtsoffirstin-stance(SupremeCourtofChina,n.d.).Thestatisticalpictureisconfirmedbydirectpractitioners,asmostofthearbitratorsinterviewedforthisstudyreportthattheyhaveonlyhandledoneortwocasesinvolvingnewformsofemployment.5

Increasingnumberofcases

Thenumberofdisputesinvolvingnewformsofemploymentshowsaclearlyincreasingtrend:suchcasesbegantoappearin2013andgraduallyincreasedafter2016.BothinChinaandinter-nationally,newcasesbegantoappeararound2013.Theworld'sfirstlabourdisputecaseagainstplatformemploymentwasaformallawsuitfiledbyaCaliforniaride-hailingdriveragainstUberintheCaliforniaDistrictCourtinAugust2013,involvingsixclaims,includingUber’stheftofdrivers'incomeandmisclassificationofdriversasindependentcontractworkers(TuWei,2021).Therehasbeenasteadyincreaseinlitigationregardingtheclassificationoftheworkingarrangementsofplatformlabouraroundtheworldoverthepastfewyears(ILO,2021).AsofSeptember2021,therewere15administrativedecisionsand175judgmentsissuedbyEuropeancountriesontheclassificationofplatform'sworkers.

InChina,"thefirstlabourdisputecaseofgigworkers"generallyreferstothecaseofMr.Sunandsevenothe