Legal Risks of Employers in "Private Car Public Use"

2023 07/27

Case Description


Due to the large number of employees in Company X who use private cars for public use, they are concerned about potential safety hazards and accident risks. They would like to know what legal risks they face as employers and how to avoid them.


Lawyer Analysis


The main legal risks faced by employers in the "public use of private cars" are as follows:


1. Risk of assuming work-related injury liability


Article 14 of the Regulations on Work Injury Insurance stipulates: "If an employee falls under one of the following circumstances, it shall be recognized as a work injury:... (5) If he/she is injured due to work reasons or the whereabouts of an accident are unknown during the period of going out of work;..." If an employee suffers injury due to work reasons during the period of "private car public use", it shall be classified as a work injury. Employers must pay relevant fees to employees in accordance with the relevant provisions of laws and regulations on work-related injuries, including: paying the wages for the period of work stoppage and salary retention based on the original salary and welfare benefits of the injured employees; Pay disability allowances to disabled employees at level 5 and level 6 who are unable to arrange work on a monthly basis and whose labor contracts have not been terminated or terminated, and the employer and work-related injured employees shall pay various social insurance premiums based on the disability allowance for disabled employees at level 5 and level 6; Pay a one-time disability employment subsidy to disabled employees at levels 5 to 10 who agree to terminate or terminate their labor contracts; For workers with work-related injuries identified as Level 1 to Level 4 disabilities, the employer and the worker shall pay basic medical insurance premiums on a monthly basis based on the disability allowance paid by the work-related injury insurance fund; For work-related injured employees who cannot take care of their own lives, the employer shall pay the nursing fees for the shutdown period with salary.


2. Bear the risk of compensation liability for personal injury and property loss caused by work to employees


According to the first paragraph of Article 1191 of the Civil code, "If an employee of the employing unit causes damage to others due to the performance of his work, the employing unit shall bear the liability for tort. After assuming the liability for tort, the employing unit may recover compensation from the employee who has intentional or gross negligence." Article 1213 stipulates that: If a motor vehicle causes damage in a traffic accident, which falls under the responsibility of one party to the motor vehicle, the insurer who underwrites the compulsory motor vehicle insurance shall first compensate within the scope of the compulsory insurance liability limit. The insufficient part shall be compensated by the insurer who underwrites the commercial motor vehicle insurance in accordance with the provisions of the insurance contract. If there is still insufficient or no commercial motor vehicle insurance, the infringer shall compensate If it causes personal injury or property loss to everyone, the insurance company shall first compensate within the scope of compulsory motor vehicle traffic insurance liability of the vehicle causing the accident; Secondly, if the vehicle involved in the accident has other commercial insurance, the commercial insurance shall compensate; The insufficient part shall be compensated by the employer as the person responsible for the infringement according to the proportion of the employee's fault in the traffic accident. Of course, after the employer makes compensation, they can pursue compensation from employees who have intentional or gross negligence. Among them, in the case of gross negligence by employees, the judicial authorities will reasonably define the proportion of compensation based on factors such as the nature of the employee's work, accident liability, and the inevitability of private car public use. For example, in cases where private car sharing is not the only way for employees to carry out their work, the employer also needs to bear corresponding responsibilities.


3. The risk of bearing compensation liability for vehicle losses owned/used by employees


According to the provisions of the first paragraph of Article 1191 of the Civil code and the provisions of Article 12 of the Interpretation of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Road Traffic Accident Damage Compensation Cases, the subject of compensation liability for the loss of vehicles owned/used by employees is the same as that described in the aforementioned risk 2.


In order to reduce/avoid the aforementioned legal risks of "private car public use", employers may require employees to use taxis, public transportation, or use their own or rented external operating vehicles when going out for work. It is impossible to avoid the situation of "private car public use". It is recommended that employers establish relevant systems for "private car public use", clarify the approval process, cost bearing, and commercial insurance that should be purchased for "private car public use" vehicles to reduce/transfer risks.