Mr. Gu was recruited by the Company and was assigned responsibility for machine operation. The Company paid a wage to Mr. Gu on a piecework basis, and Mr. Gu did not take regular clock attendance at the Company. Afterwards, Mr. Gu established employment with another company (the “Employer”), with a labor contract signed and social insurance paid lawfully. To balance the service for two entities, Mr. Gu continued to work for the Company after he was off duty from his Employer. Later, Mr. Gu suffered an injury during his work at the Company and filed a lawsuit for recognition of the employment relationship between him and the Company. Through the litigation proceedings, the court eventually ruled that there was a de facto employment relationship between Mr. Gu and the Company. The court came to this decision based on the followings: (a) Mr. Gu was subordinate to and managed by the Company as his workload was decided by the Company; (b) Mr. Gu received wages from the Company as quid pro quo for his work and (c) Mr. Gu, using his spare time to work at the Company, did not harm the interest of the Employer.
China