Is it illegal for factories not to pay social security and sign contracts?

Legal analysis: illegal. If the company fails to sign a labor contract or pay social security to its employees, it may apply to the local labor dispute arbitration committee for labor arbitration. A labor contract is an agreement between a laborer and an employer to establish a labor relationship and clarify the rights and obligations of both parties. The social insurance fund shall determine the source of funds according to the types of insurance and gradually implement social pooling. Employers and workers must participate in social insurance and pay social insurance premiums according to law. It is illegal for an employer not to sign a contract or pay social security. If the employee fails to conclude a written labor contract with the employer within one month from the date of employment, the employer shall notify the employee in writing to terminate the labor relationship without paying economic compensation to the employee, but shall pay the employee the remuneration for the actual working hours according to law. If the employer fails to conclude a written labor contract with the employee for more than one month and less than one year from the date of employment, it shall pay the employee twice the monthly salary in accordance with the provisions of Article 82 of the Labor Contract Law, and make up the written labor contract with the employee.

Legal basis: Article 4 of the Social Insurance Law of People's Republic of China (PRC) * * * Employers and individuals in People's Republic of China (PRC) pay social insurance premiums according to law, and have the right to inquire about payment records and personal rights and interests records, and ask social insurance agencies to provide social insurance consultation and other related services. Individuals enjoy social insurance benefits according to law and have the right to supervise the payment of their own units.