The recognition of employment relationship under ‘Internet Plus’

On 6 June 2018, the People’s Court of Haidian District posted a labour dispute case on its official social media platform that aroused wide public concern. The dispute involved the operating entity of the Shansong Express platform and a delivery man, and the core legal issue was whether an employment relationship was established between them. Haidian Court ruled that an employment relationship had been established.

In the context of ‘Internet Plus’, this judgment attracted widespread attention from a multitude of internet companies. Is there an employment relationship between an internet company like Shansong and an individual who provides services via the platform? And to what extent should an internet company assume legal and social responsibilities?

In the case, tried by Haidian Court, an individual signed up on Shansong platform as a deliverer, and the two parties signed a co-operation agreement, stipulating that: (1) a business relationship rather than labour relationship is created between the parties; (2) Shansong procures commercial insurance for the delivery man; and (3) the delivery man has to prepare their own vehicle and can decide on their own whether to take orders or not.

Qin Wen is a partner, and Ivy Zhang is a senior associate at Rui Bai Law Firm. Rui Bai and Xin Bai are both members of the PwC global network of frms