Is it illegal for factories not to buy insurance?

Legal analysis: China's laws clearly stipulate that employers have the obligation to pay social security for workers. The Labor Law stipulates that "employers and workers must participate in social insurance and pay social insurance premiums according to law." Therefore, it is illegal for companies and employees to agree not to pay social insurance premiums. The company should continue to implement the original policy and pay social insurance fees for employees on time according to law. If the unit fails to pay social security for the employees according to law, the employees may demand compensation when they resign. If the employer fails to pay the social insurance premium for the employee according to law, the employee may terminate the labor contract. The employing unit shall pay economic compensation to the workers. The economic compensation shall be paid according to the standard of one month's salary for each full year of the employee's working years in the unit.

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

Article 38 A laborer 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.

Article 62 An employing unit shall perform the following obligations: (1) Implementing national labor standards and providing corresponding working conditions and labor protection; (2) Informing the dispatched workers of their job requirements and remuneration; (3) Pay overtime pay and performance bonus, and provide post-related benefits; (four) to provide necessary on-the-job training for the dispatched workers; (five) continuous employment, the implementation of normal wage adjustment mechanism.