With social security fees accumulated by taxation collection authority, it is heatedly discussed how middle-sized and minor-sized enterprises (labor-intensive enterprises) can lower their costs of social security fees. As it is not obligatory for employers to sign labor contract with or purchase pension insurance for part-time employees, part-time employment has regained public attention and become one of the major tools widely used in transformation of employment models. In this case, PW & Partners feels obliged to share some updated information about part-time employment with you. 

Today’s topic: Do part-time employees enjoy paid annual leave?

The topic today is more complicated than it seems. Let’s see what opinions courts tend to hold in Beijing, Shanghai and Guangzhou. (The following opinions abstracted from particular cases handled by some local courts are ONLY for reference.)

1

GUANGZHOU

Considering the Part-time Labor Contract signed by the employee, the performance of the employee and the salary paid during the contract term, this employee is identified as a part-time worker, whose claims for compensation for illegal rescission, unpaid salary, recovery of salary balance, salary making up for untaken annual leave and overtime work salary based on full-time employment is therefore rejected on the premise of logical reasoning and valid evidence. 

2

SHANGHAI

The labor relation between the employee and the employer is ruled as part-time employment, for which employer is not subject to duties designated in standard employment. The employee’s claim for legitimate rights including compensational salary for untaken annual leave is invalid. 

3

BEIJING

It is stipulated in the Implementation Measures for Paid Annual Leave for Employees of Enterprises that employees who have worked continuously for one year or more are entitled to paid annual leave. The accumulative working time of an employee should be the working time in a full-time employment. The contract signed between the employee and the employer is a part-time labor contract, and the labor relation between the two parties is identified as part-time employment, according to which the employee is not entitled to the paid annual leave under standard labor contract. 

PW & Partners holds that in the case that there are no specific regulations securing part-time employees the entitlement to paid annual leave, part-time employees do not have to the right to take an annual leave, except when the part-time labor contract they sign with employers clearly includes such entitlement or the rules and regulations of the employers cover it. 

Reference

Reply of the General Office of the Ministry of Human Resources and Social Security on Issues Concerning the Implementation Measures for Paid Annual Leave for Employees of Enterprises.