This　paper　investigates　the　impact　of　employee　protection　on　trade　credit　on　the　basis　of　the　implementation　of　China＇s　＂Social　Insurance　Law＂.　The　relationship　between　trade　credit　and　employee　protection　by　social　insurance　regulations　has　not　been　thoroughly　investigated.　Hence,　to　explore　the　impact　of　employee　protection　on　the　trade　credit　redistribution,　we　adopt　a　difference-in-differences　model　that　is　based　on　the　implementation　of　China＇s　2011　Social　Insurance　Law.　We　find　a　negative　effect　of　employee　protection　on　trade　credit　redistribution　based　on　the　data　of　listed　firms　in　China　from　2007　to　2015,　which　is　motivated　by　growing　performance　pressure　and　cash　holdings.　Moreover,　the　negative　effect　is　more　pronounced　in　SOEs　and　in　firms　that　face　stricter　local　law　enforcement,　greater　financial　constraints,　and　higher　financial　costs.　Our　study　sheds　light　on　the　real　effect　of　employee　protection　and　the　factors　influencing　trade　credit　redistribution,　expanding　the　prior　literature.