Zhang Department of migrant workers, in 2014 8 month post of a catering company, engaged in the kitchen work, both sides signed a labor contract for 3 years, the monthly salary of 4000 yuan contract. At the same time, the two sides signed a "social compensation agreement", the agreement, due to personal reasons, Zhang does not require the catering company to pay social insurance premiums for the catering company will discount 500 yuan monthly social security costs paid to Zhang, Zhang to bear the legal consequences of giving up pay related social insurance premiums etc.. Work to July 2016, Zhang catering company did not pay for the social insurance fee for the grounds, proposed to terminate the labor contract, and require payment of economic compensation and payment of social insurance during the work period. Catering company believes that Zhang himself voluntarily give up the payment of social insurance fees, but in turn the unit to pay its social insurance, but also economic compensation, its behavior violated the principle of good faith, it does not agree to pay the economic compensation. Due to disputes, Zhang filed an arbitration application to a district arbitration committee. After the Arbitration Commission held that the social security compensation agreement signed by Zhang and the catering company violated the mandatory provisions of the law, it should be invalid. After mediation by the Arbitration Commission, the two sides reached a settlement agreement, Zhang will receive 500 yuan monthly social security compensation returned to the catering company, catering companies in accordance with the law for Zhang paid social security fees, and to pay part of the economic compensation for zhang. [focus of dispute] Paying social security obligations according to law can not be avoided! In accordance with the relevant provisions of the social insurance law, employers and workers have the obligation to pay social insurance premiums according to law. In this case, the catering company signed a "social compensation agreement" with Zhang, Zhang received more monthly wages, catering companies can also take some less social security costs, both seem to be favorable, but the presence of Zhang in the illness, old age, family circumstances, unable to obtain the corresponding social security risks, and ultimately damage to individuals, employers and even social interests. In this case, although Zhang is contrary to the "good faith" principle, but because of "social compensation agreement" itself has no legal effect, and employers have a legal obligation to withhold social insurance fees, not to pay social insurance premiums in the establishment of the facts in Zhang justify the proposed termination of the labor contract, the catering company still need to pay economic compensation. (source: Beijing Municipal Bureau of human resources and social security