Case Information:

Appellant (plaintiff of the original case): Beijing Hongcaixintong Science and Technology Co., Ltd.

Appellee (defendant of the original case): Wu Jiabao

Court: Beijing Third Intermediate People’s Court

Case Ref.: (2014) Sanzhong Minzhongzi No.00889

Key Facts:

On May 4, 2010, Wu Jiabao (“Employee”) started his employment relationship with Beijing Hongcaixintong Science and Technology Co., Ltd. (“Company”). On November 14, 2010, the Employee fell and was injured during his work. On December 4, 2010, the parties signed an agreement related to this accident, and the parties agreed that the Company should pay medical treatment fees at the amount of RMB 22,800 and the lump sum treatment fees at the amount of RMB 26,000 to the Employee. The Employee shall not demand the Company to pay any other fees except such amount. Later the Employee’s work-related injury was identified, with 10th grading of injury/disability.

The Employee brought disputes to the arbitration committee and the court in a sequential manner, demanding the Company pay more than RMB 70,000 to him, which includes the salary of the paid non-working period, a lump-sum injury/disability allowance, a lump-sum medical allowance for the work-related injury, the balance of the lump-sum employment allowance for injury/disability, and food subsidies during the hospitalization.

The court of the first instance held that the Company failed to prove the asserted facts that the Employee was injured from his jump from the roof while there were stairs to take. Even though the parties have signed an agreement on the work-related injury compensation, the amount of compensation stipulated in such agreement is obviously below the statutory standard, and the Company shall pay for the balances. The court of the first instance ruled that the Company should pay more than RMB 70,000 to the Employee, which includes the salary of the paid non-working period, a lump-sum injury/disability allowance, a lump-sum medical allowance for the work-related injury, the balances of the lump-sum employment allowance for injury/disability, food subsidies during the hospitalization.

The Company appealed to Beijing Third Intermediate People’s Court.

Judgment:

The court of the second instance dismissed the appeal and sustained the original judgment.

Key Points:

The amount agreed in the settlement agreement is obviously below the statutory standard, the Company should make up the balances.

KWM Comments: Case IIechoes with Case I in this volume, emphasizing that when the employer signs agreement on work-related injury compensation, the agreed compensation items and the standard thereof should not be below the statutory standard and the rights and obligations of the parties should be as detailed as possible.