If an employee with a work-related injury voluntarily terminates the employment contract, should the company pay economic compensation?

This article is reprinted from Shaanxi Workers’ Daily

Mr. Baitetong:

After I suffered a work injury and was diagnosed with a Level 6 disability, I recently submitted my resignation to the company. However, the company, which has employed me for 7 years and 4 months, refused to pay severance pay on the grounds that I resigned voluntarily. Is their reason valid?

Reader Gao Chengcheng

Comrade Gao Chengcheng:

The company’s reason is not valid.

Article 38 of the Labor Contract Law states: “If any of the following circumstances occur, the employee may terminate the labor contract… (6) Other circumstances where the law or administrative regulations stipulate that the employee may terminate the labor contract.”

Article 46 of the Labor Contract Law states: “In the following cases, the employer shall pay economic compensation to the employee: (1) When the employee terminates the labor contract in accordance with Article 38 of this Law… (7) Other circumstances stipulated by law or administrative regulations.”

These provisions indicate that as long as the termination of the labor contract is in accordance with laws or administrative regulations, even if initiated unilaterally by the employee, they can still request the employer to pay economic compensation. Conversely, whether you can receive severance pay when voluntarily resigning depends on whether your situation meets the legal or regulatory conditions for termination. Your situation fully complies with the relevant regulations.

Because, according to Article 36 of the Work Injury Insurance Regulations, an employee who is diagnosed with a Level 5 or Level 6 work injury and applies for it can terminate or end the employment relationship with the employer. This falls under “other circumstances where the law or administrative regulations stipulate that the employee may terminate the labor contract.”

Since you are classified as Level 6 disabled, even if you request to terminate the labor contract, the company must pay you economic compensation in accordance with Article 47 of the Labor Contract Law, which states: “Economic compensation shall be paid based on the employee’s years of service with the unit, at a rate of one month’s wages for each full year of service. For periods of more than six months but less than a year, it shall be calculated as one year; for less than six months, half a month’s wages shall be paid. If the employee’s monthly wage exceeds three times the average monthly wage of employees in the local area published by the municipal government of the city where the employer is located, the standard for economic compensation shall be calculated at three times the average monthly wage. The maximum number of years for which economic compensation shall be paid is twelve.” Baitetong