A state-owned enterprise employee who suffered a fractured ankle during a company-organized basketball tournament is entitled to workers’ compensation, the Changsha Railway Transportation Court has ruled.
The decision, released November 10, overturns a previous rejection of the claim by local human resources officials.
The injury occurred when the employee, responding to a request from the company’s labor union to represent the organization, competed in a tournament match. The employee sustained an external malleolus fracture while jumping for a rebound.
When the company subsequently filed for work-related injury benefits, local human resources and social security authorities denied the claim. Their reasoning: the basketball game was a voluntary activity organized by the union, not a core professional duty.
The Changsha Railway Transportation Court rejected the narrow interpretation used by the local authorities. Relying on Article 14 of the Regulations on Work-Related Injury Insurance, the court said that injuries sustained while away from the workplace for work-related reasons qualify for coverage.
The judges also pointed to a 2013 opinion from the Ministry of Human Resources and Social Security, which specifies that injuries incurred during employer-assigned or organized activities—provided they are not unrelated to work—should be classified as work-related.
“Whether it is a production department or a labor union organizing sports activities, these are both important components of a company’s normal operations,” the court said in its judgment.
Because the union funded the tournament and the employee participated at the company’s request, the court ruled that the competition served as an extension of official duties. The human resources department must now vacate its initial denial and conduct a new assessment.
To qualify for benefits in similar cases, the court established three specific conditions. First, the event must be organized or assigned by the employer, such as when a union leads the effort and the company provides the funding.
Second, the activity must be relevant to the workplace; the court said that corporate sports events serve as a vehicle for company culture and complement normal business activities. Third, the injury must occur during the course of the event, establishing a direct causal link between the activity and the harm suffered.
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