Onus on company regarding entitlements to maternity benefits

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Recently, the Shanghai No.1 Intermediate People’s Court ordered a company to pay maternity benefits to a female employee for whom the company ceased making social insurance contributions before her delivery date, due to its bankruptcy. In this case, the employee was hired by a staffing agency and dispatched to work for the company. The employee became pregnant in August 2017, commenced long-term sick leave in September 2017 due to severe symptoms associated with pregnancy, and delivered her baby in April 2018.

The company made social insurance contributions for her through February 2018 and ceased making such contributions from March 2018, as its company social insurance account was closed as part of the bankruptcy process.

The employee therefore lost the eligibility to apply for maternity benefits (including maternity pay and medical subsidy) from the social insurance fund. The employee then filed a labour arbitration claim against the company for these benefits.

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