Court rules on retiree’s ‘special employment relationship’

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Court rules on retiree’s ‘special employment relationship’
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The Nantong Municipal People’s Court in Jiangsu province upheld a retiree’s claim that an employment relationship existed between a company and the retiree. The retiree was hired by the company after reaching the statutory retirement age, but the retiree had not drawn a pension from the social insurance fund. The company entered into a signed service agreement with the retiree. After the service agreement expired, the employee continued to work at the company without entering into a written renewal agreement. The employee filed a claim that the service relationship had become an employment relationship with the company. On this basis, the employee sought compensation from the company for its failure to enter into a written employment contract, and for its salary payments being less than the local minimum wage.

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Business Law Digest is compiled with the assistance of Baker McKenzie. Readers should not act on this information without seeking professional legal advice. You can contact Baker McKenzie by e-mailing Danian Zhang (Shanghai) at danian.zhang@bakermckenzie.com

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