The situation: A company offers an employee a small raise in exchange for 'skipping insurance,' and he signs a waiver. After a work injury he finds he has no medical coverage or pension.
Applicable law: Paying social insurance (pension, medical, unemployment, work-injury, maternity) is a mandatory legal duty of the employer that cannot be waived even by mutual agreement; any such agreement is void. The employee may terminate the contract with compensation and report to the insurance authority to recover arrears.
Outcome: The company was ordered to pay the back contributions plus late-payment penalties, and paid severance for the terminated contract.
👷 Labour disputes · Awareness case
'We'll Pay You Cash Instead of Insurance' — A Costly Trap · Yalla China
🤝 Governing law: 社会保险法 / Social Insurance Law
Can an employer hand you cash instead of paying social insurance?
Illustrative, general educational examples — not real specific facts and not legal advice; for awareness only. For an actual situation, consult a licensed lawyer.
🎓 The lesson / takeaway
Lesson: Cash can never replace insurance that protects you in illness, injury and old age. Don't sign a void waiver that costs you your future.
🕒 Updated: 16 March 2026