China: Supreme Court Issued the Interpretation of the Supreme People’s Court on the Application of the General Provisions of the Civil Code of the People’s Republic of China on Tort Liability

Author: Carol Zhu and Lynsey Liu

On September 26, the Supreme People’s Court issued the Interpretation of the Supreme People’s Court on the Application of the General Provisions of the Civil Code of the People’s Republic of China on Tort Liability (“the Interpretation”), which came into force on 27 September 2024.

The Interpretation further clarifies the rules on liability for torts committed by employees in employment relationships, labour dispatch, and outsourcing. Article 15 stipulates that if an employee causes damage to others while performing their work duties, the employer shall bear tort liability. This provision also applies to individual industrial and commercial household employees. Article 16 stipulates that during the labour dispatch period, if a dispatched employee causes damage while performing their work duties, the host employer shall bear full responsibility, and the dispatching entity shall bear joint and several liability within the scope of its fault. Article 17 stipulates that even if the employee’s behaviour constitutes a crime, the employer shall still bear civil liability.

Key Action Points

The Interpretation aims to clarify the scope of application for the responsibilities of employers and the forms of tort liability in labour dispatch relationships. It also stipulates that criminal acts committed by employees while performing their duties do not release the civil liability of the employer, and it coordinates the relationship between criminal forfeiture, restitution, and civil compensation.