How to compensate employees for company's failure to pay social security

Companies failing to pay social security should pay economic compensation to workers.

The following are some of the avenues of compensation that employees can consider:

1. Negotiated settlement: Employees can first communicate and negotiate with their employers, offer to ask the company to make up for the unpaid social insurance costs, and reach an agreement on compensation. Try to solve the problem through friendly negotiation to avoid affecting the relationship between the two parties.

2. Complaints from Labor Inspection Department: If the problem cannot be solved through negotiation, the employee can file a complaint with the local labor inspection department or labor security department to report the company's non-payment of social insurance fees. The relevant department will investigate the complaint and take appropriate legal measures based on the results of the investigation, including ordering the company to make up the arrears and penalizing the company.

3. Legal action: Employees may choose to file a lawsuit with the court to demand compensation from the company for unpaid social insurance costs. Please consult a local labor law expert or lawyer to understand the relevant legal procedures and requirements, and decide whether to take the legal route according to your own situation.

If a company fails to pay social insurance, it will have to compensate the worker according to his/her actual loss; if the worker terminates the contract with the company because of this, the company will have to pay him/her one month's salary as economic compensation for every year he/she has worked in the company.

In summary: no matter which route is chosen, employees are advised to keep relevant evidence, including pay slips, social security payment records, contracts, etc., to prove the fact that the company has failed to pay social insurance fees. In addition, communication with employers and relevant departments should preferably be in writing to ensure that conversations are recorded and evidenced.

Legal basis:

The Law of the People's Republic of China on Labor Contracts

Article 38

provides for the termination of the labor contract; Article 47 of the economic compensation shall be paid to the worker according to the number of years the worker has been working for the organization, and one month's salary shall be paid to the worker for each year of service.