Is social insurance necessary for companies?

Legal analysis: the employer must pay social insurance for employees, which is a mandatory obligation in law and a legal obligation of both parties. Both parties in labor relations cannot negotiate flexibility. There are great legal risks in employers' failure to pay social security: employees can report to the labor inspection at any time and ask the employer to pay, and the result is often to pay back within a time limit; According to the provisions of the Labor Contract Law, if the employer fails to pay social insurance premiums for the employee according to law, the employee may terminate the labor contract, and the employer shall also pay economic compensation. If the employer pays social insurance premiums such as medical treatment and work-related injuries, the corresponding expenses shall be borne by the social security fund once such situations occur during the employment period of the workers. On the other hand, if social security is not paid, it will be borne by the employer in accordance with social security standards.

Legal basis: People's Republic of China (PRC) Labor Law.

Article 72 The sources of social insurance funds shall be determined according to the types of insurance, and social pooling shall be gradually implemented. Employers and workers must participate in social insurance and pay social insurance premiums according to law.

Article 73 Laborers shall enjoy social insurance benefits according to law under the following circumstances: (1) Retirement; (2) Being sick or injured; (3) Being disabled at work or suffering from occupational diseases; (4) unemployment; (5) bearing. After the death of an employee, his survivors shall enjoy the survivors' allowance according to law. The conditions and standards for workers to enjoy social insurance benefits shall be stipulated by laws and regulations. Social insurance premiums enjoyed by workers must be paid in full and on time.

Article 38 of the Labor Contract Law of People's Republic of China (PRC) * * * The employee may terminate the labor contract under any of the following circumstances: (1) Failing to provide labor protection or working conditions as agreed in the labor contract; (2) Failing to pay labor remuneration in full and on time; (3) Failing to pay social insurance premiums for laborers according to law; (4) The rules and regulations of the employing unit violate the provisions of laws and regulations and damage the rights and interests of workers; (5) The labor contract is invalid due to the circumstances specified in the first paragraph of Article 26 of this Law; (6) Other circumstances under which the laborer can terminate the labor contract as stipulated by laws and administrative regulations. If the employer forces the laborer to work by means of violence, threat or illegal restriction of personal freedom, or if the employer illegally directs or forces the risky operation to endanger the personal safety of the laborer, the laborer may immediately terminate the labor contract without notifying the employer in advance.