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MEASURES FOR COMPENSATION IN A LUMP SUM TO THE DISABLED OR DECEASED EMPLOYEE OF AN ILLEGAL EMPLOYING ENTITY
 
(Order of the Ministry of Human Resources and Social Security of the People's Republic of China (No. 19), September 23, 2003: The Measures for Compensation in A Lump Sum to the Disabled or Deceased Employee of An Illegal Employing Entity, which were adopted by the Ministry of Labor and Social Security at the 5th ministry meeting on September 18, 2003, are hereby promulgated, and shall come into force as of the date of January 1, 2004)
     
     
SUBJECT : LABOR; COMPENSATION FOR DISABILITY/DECEASE
ISSUING DEPARTMENT : MINISTRY OF HUMAN RESOURCES AND SOCIAL SECURITY OF THE PEOPLE'S REPUBLIC OF CHINA
ISSUE DATE : 09/23/2003
IMPLEMENT DATE : 01/01/2004
LENGTH : 699 words
TEXT :
Article 1. The present Measures are formulated in accordance with the authorization of paragraph 1, Article 63 of the Regulations on Work-Related Injury Insurance.


Article 2. The "disabled or deceased employee of an illegal employing entity" mentioned in the present Regulations refers to the employee in an entity without business license or having not been registered or recorded in accordance with the law or an entity whose business license has been revoked in accordance with the law or which is deregistered or removed from archival files, who was injured in an accident or contracted an occupational disease, or the disabled or deceased child laborer who was employed by an employing entity using child laborers and suffered from injury or died thereto.

The employing entities enumerated in the preceding paragraph shall, in accordance with the provisions of the present Regulations, pay compensation in a lump sum to the disabled or deceased employee or his lineal relatives, and the disabled or deceased child laborer and his lineal relatives.


Article 3. The lump-sum compensation includes costs and the lump-sum compensation for the medical treatment of an employee or a child laborer who was injured in an accident or contracted an occupational disease, the amount of the lump-sum compensation shall be ascertained after the death of or the work capability assessment of the employee or the child laborer who was injured in the accident or contracted the occupational disease.

The work capability assessment shall be handled in accordance with the principle of territory by
the work capability assessment committee at the level of city divided into districts at the locality of the employing entity. The cost for the work capability assessment shall be paid by the employing entity of the disabled or deceased employee or child laborer.


Article 4. In case any employee or child laborer is injured in an accident or contracts an occupational disease, the employing entity of the disabled employee or child laborer shall, in accordance with the standards and scope under the Regulations on Work-Related Injury Insurance, pay all the expenses for the medical treatment of the employee or the child laborer before the work capability assessment, such as alimonies, medical treatment costs, nursing expenses, food subsidies for hospitalization, and traffic expenses.


Article 5. A lump-sum compensation shall be paid according to the following standards:

first grade of disability shall be 16 times of the compensation base;
second grade of disability shall be 14 times of the compensation base;
third grade of disability shall be 12 times of the compensation base;
fourth grade of disability shall be 10 times of the compensation base;
fifth grade of disability shall be 8 times of the compensation base;
sixth grade of disability shall be 6 times of the compensation base;
seventh grade of disability shall be 4 times of the compensation base;
eighth grade of disability shall be 3 times of the compensation base;
ninth grade of disability shall be 2 times of the compensation base; and
tenth grade of disability shall be one time of the compensation base.


Article 6. In case an employee is injured in an accident or contracts any occupational disease, which causes his death, he shall be paid compensation in a lump sum of 10 times the compensation base.


Article 7. The "Compensation base" mentioned in the present Measures refers to the average yearly pay of the staff and workers in the previous year in the work-related injury insurance region subject to overall planning at the locality of the employing entity.


Article 8. Where the entity refuses to pay compensation in a lump sum, the lineal relatives of the disabled or deceased employee or child laborer may report to the administrative department for labor security, who shall, if the facts are verified to be true upon investigation, order the entity to make corrections within a prescribed time limit.


Article 9. Where the lineal relatives of the disabled or deceased employee or child laborer and the employing entity are in dispute over the amount of compensation, the dispute shall be settled in accordance with the relevant provisions on settling labor disputes.


Article 10. The present Measures shall come into force as of the date of January 1, 2004.
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