On March 12, 2013, the Shenzhen Intermediate People’s Court reportedly held an appeal hearing after the Shenzhen Bao’an District People’s Court ordered a company to pay RMB878,000 to a student intern for an injury that occurred at a workplace. Although the company argued that the student was employed by a labor service agency and that his injury should be covered by the work injury insurance system, the court ruled that no employment relationship was established with either the company or the labor service agency, and thereby ordered compensation of RMB 878,000 as disability remedy, expenses for disability assistance and compensation for missing work.

The case, which is still in the appeals process, demonstrates the risks of employing student interns. Companies should consider purchasing commercial insurance to cover intern arrangements.