Decision regarding the modification of <Guangdong provincial regulations on work-related injury insurance> has been passed by the standing committee of Guangdong Provincial People’s Congress on 21st of May 2019. The new regulations will be implemented since July 1st 2019. Now we share the important points of the latest modification as follows:

1

The “social insurance fee collecting organ ” is officially identified as “taxation department”.

[Observation] It is to build connection to the reform of the national collecting and managing system for state tax & regional tax and to legislatively confirm that all kinds of social insurance fee should be collected by taxation departments.

2

Cancel the regional division way in “pooling regions” and set up regions, according to various situations, like “city, county (district) where work-related injury insurance is participated”, “prefecture-level and above city” and so on.

[Observation] It is to match the reform of the national collecting and managing system for state tax & regional tax and therefore to re-plan the regions and function and power range of social security administrative departments.

3

The statistical scope of employee’s monthly average wage of last year is amended from “pooling region” to “whole province”.

[Observation] It is to unify the calculating standard for employee’s monthly average wage of last year, in order to improve the work-related injury insurance treatment of the labor that stay in the regions of low monthly average wage in the province.

[Remark] In those cities where the employee’s monthly average wage is higher than “provincial” standard, the municipal standard prevails.

4

The medical costs that have been paid, according to relevant regulations, by the basic medical insurance funds before identification of injury related to work will be settled, in accordance with relevant regulations, by work-related injury insurance funds to basic medical insurance funds.

[Observation] It provides the medical treatment costs of labor a subsequent ratification into the work-related injury insurance write-off range, in order to further ease the medical treatment burden of labor.

5

Add condition to the employees with disablement of grade 7 to 10 when they are drawing one-time medical allowance of work-related injury and one-time allowance of employment as disables: exclusive of the case of enjoying primary endowment insurance treatment or death.

[Observation] PW & Partners inclines to the view that one-time medical allowance of work-related injury and one-time allowance of employment as disables is an aid to the injured employees for their reemployment. At certain rate, it is reasonable that the employees with disablement of grade 7 to 10 (lower level of disablement) is not qualified for one-time allowance of reemployment due to their pension benefit or death occurred.

6

To the employer that does not participate the work-related injury insurance according to the law or does not pay the premium of work-related injury insurance in full amount on time and exceeds time limit without improvement ordered by taxation department, its person-in-charge with direct responsibility and other persons with direct responsibity shall be subject to punishment in accordance with the law.

[Observation] It supports the reform policy of the Ministry of human resources and social security regarding to enhancing penalties to dishonesty in field of social security, strengthen the liability of the principal of employer unit for misdeeds in respect of paying work-related injury insurance to promote corporation’s legal construction.

7

In case that employee who has been injured or suffer from occupational diseases has not finished the identification of work-related injury before the implementation of the new regulations, the new regulations shall prevail. In case identification of work-related injury has been completed before the implementation of the new regulations, the work-related injury insurance treatment proceeded after the new regulations shall be in accordance with the new regulations.

[Postscript] This article presents our forward-looking understanding to the new regulations. Relevant practice and detailed interpretation to the provisions should be subject to actual situation after the implementation of the new regulations.