CBL’s Introduction
Hiring foreign workers in China is subject to stringent administrative procedures. Employers must secure employment authorization and work permits through a multi-agency review process. Missteps in documentation or missed deadlines can lead to heavy fines or permit cancellation. The following Rules, translated into American English by CBL, detail these requirements to provide essential guidance designed to help businesses navigate China’s complex labor regulations.
Contents
- Employment Authorization Procedures (§§ 5-10)
- Work Permit Application and Approval (§§ 11-16)
- Employer Management of Foreign Employees (§§ 17-22)
- Renewal, Replacement, and Annual Reviews for Work Permits (§§ 23-26)
- Penalties for Foreigners Working Without a Valid Work Permit & their Employers (§§ 27-30)
- Regional Exceptions, Local Rulemaking, and Implementation (§§ 31-36)
Foreign Worker Employment Administrative Rules
(Issued on January 22, 1996, by Ministry of Labor Notice No. 29 (1996); amended on November 12, 2010, by the Decision to Repeal and Amend Certain Ministry of Human Resources and Social Security Rules; amended on March 13, 2017, by the Ministry of Human Resources and Social Security Decision to Amend the Foreign Worker Employment Administrative Rules)
Chapter 1 General Provisions
Section 1 The purpose of these Rules is to improve regulation for the employment of foreign nationals in the People’s Republic of China pursuant to applicable Chinese law.
Section 2 “Foreign nationals” in these Rules means non-Chinese nationals as defined under the Nationality Act of the People’s Republic of China. “Employment of foreign nationals in China” in these Rules refers to the lawful employment and lawful receipt of compensation for foreign nationals who have not obtained permanent residency.
Section 3 These Rules cover foreign nationals employed in China and their employers. These Rules do not cover foreign diplomats and other individuals with diplomatic privileges and immunity employed by embassies or consulates of other countries, as well as those employed by United Nations representative offices and other international organizations.
Section 4 Provincial, autonomous region, and home rule city labor regulators and their authorized municipal regulators shall oversee the employment of foreign nationals.
Chapter 2 Employment Authorization
Section 5 Employers must complete employment authorization procedures for foreign nationals prior to employment, and may only employ foreign nationals after their employment is authorized and have been issued a People’s Republic of China Foreigner’s Employment Authorization Certificate (the “Employment Authorization Certificate”).
Section 6 Employers may only hire foreign nationals for specific occupations permitted by Chinese law that lack sufficient qualified local candidates. Employers shall not hire foreign nationals for commercial live performances unless specifically provided for under §9(c) of these Rules.
Section 7 A foreign national must meet the following criteria to be eligible for employment in China:
(a) Be at least 18 years old and in good health;
(b) Possess the required professional skills and work experience for the position;
(c) Have no criminal record;
(d) Have a confirmed employment offer from an employer;
(e) Hold a valid passport or equivalent international travel document (the “equivalent documents”).
Section 8 Foreign nationals employed to work in China shall enter China on a Z visa (or under a bilateral visa waiver agreement, if applicable) and must obtain both a Foreigner’s Work Permit (the “Work Permit”) and a foreigner’s residence permit before starting work.
Individuals without a valid residence permit (holders of F, L, C, or G visas), students, interns, and family members accompanying Z visa holders are not authorized to work in China. Under certain circumstances, employers may be required to obtain an employment authorization certificate pursuant to the approval procedures provided in these Rules, and the prospective foreign employee must update their status with the appropriate police office and obtain both a Work Permit and residence permit before they can be employed.
The employment of spouses of foreign embassy or consulate, United Nations representative office, and international organization representative office employees in China must comply with the Rules on the Employment of Spouses of Foreign Embassy and Consulate Employees and United Nations Representative Office Employees issued by the Ministry of Foreign Affairs of the People’s Republic of China and shall be subject to the approval procedures provided in subsection 2(b) hereof.
The Ministry of Labor issues both employment certificates and foreigner’s Work Permits.
Section 9 Foreign nationals may be exempt from employment authorization procedures and Work Permit requirements if they meet any of the following conditions:
(a) The foreign national is a technical or management expert directly employed by the central government, a government agency, or a public institution, holds expert qualifications or certifications recognized by Chinese or international technical management authorities and industry associations, or holds a foreign expert certificate issued by the National Administration of Foreign Experts Affairs.
(b) Foreign workers holding a China foreign national offshore petroleum operations permit who have specialized skills and work exclusively offshore. (c) Foreign nationals holding a performance permit authorized by the Ministry of Culture to perform in commercial live performances.
Section 10 Foreign nationals are exempt from obtaining an employment authorization certificate if they satisfy any of the following conditions, and may apply for a Work Permit by providing their Z visa and submitting the necessary documentation:
(a) Foreign nationals employed to work in China under international collaborative education programs or conventions between China and overseas governments or international organizations;
(b) Chief or designated representatives of foreign business representative offices in China.
Chapter 3 Application and Approval
Section 11 Employers hiring foreign nationals must complete and submit a Foreign National Employment Application (hereinafter referred to as the “Application”) to the appropriate industry regulator with the same level of authority as the jurisdictional labor regulator (hereinafter referred to as the “Industry Regulator”) along with the following materials:
(a) Documentation certifying the foreign national’s experience;
(b) A letter of intent to employ the foreign national;
(c) A statement establishing the necessity of hiring the foreign national;
(d) Copies of the foreign national’s certificates and qualifications relevant to the position;
(e) A valid health certificate for the foreign national;
(f) Any other documents required by law.
The Industry Regulator shall review and approve applications pursuant to §§6 and 7 of these Rules and applicable law.
Section 12 Following approval by the Industry Regulator, the employer shall submit the Application and complete the approval procedures with their local provincial, autonomous region, or home rule city labor regulator or an authorized municipal labor regulator. Provincial, autonomous region, and home rule city labor regulators or their authorized municipal labor regulators shall designate a specific agency (the “Issuing Agency”) to issue employment authorization certificates. The designated Issuing Agency shall consider the opinions of the jurisdictional Industry Regulator and current labor market requirements when reviewing Applications and shall issue the employment authorization certificate to the employer following approval.
Section 13 Central government agencies or employers not subject to industry regulator oversight may submit applications and complete the necessary employment authorization procedures with the issuing agency designated by the labor regulator.
A wholly or partially foreign owned business entity employing a foreign national may apply for an employment authorization certificate with the issuing agency designated by the labor regulator by providing their employment contract, articles of incorporation, certificate of approval for foreign owned businesses, business license, and other documents provided in §11 of these Rules, without requiring prior approval from the industry regulator.
Section 14 Foreign nationals approved for employment in China shall obtain a Z visa from an overseas Chinese embassy, consulate, or diplomatic mission by submitting their employment authorization certificate and a valid passport or equivalent document.
Foreign nationals falling under § 9(b) of these Rules must submit an application for a Z visa accompanied by the notice letter issued by the China National Offshore Oil Corporation. Those falling under §9(c) are required to provide the approval document issued by the Ministry of Culture with their Z visa application.
Foreign nationals falling under §10(a) of these Rules must submit documentation related to their international collaborative education program when applying for a Z visa, while those under §10(b) must include the registration certificate issued by the business regulator with their Z visa application.
Section 15 Within 15 days of the foreign employee‘s entry into China, the employer must apply for a Work Permit for the foreign employee at the designated issuing agency. This application shall include the foreigner’s employment authorization certificate, the executed employment contract, and the foreign national’s valid passport or equivalent identification document. Additionally, the employer must also complete the Foreign National Employment Registration Form.
The Work Permit is only effective within the area designated by the issuing agency.
Section 16 Foreign nationals who successfully obtain a work permit must use their work permit to apply for a residence permit at the appropriate local police office within 30 days of their arrival in China. The term of the residence permit is the work permit term.
Chapter 4 Worker Management
Section 17 Employers are required to enter into employment contracts with all employed foreign nationals. The duration of an employment contract must not exceed five years. An employment contract shall automatically terminate upon its expiration and may be renewed following the review and approval procedures provided in §18 of these Rules.
Section 18 A foreign national’s work permit shall automatically expire upon expiration of their employment contract. To renew a foreign national’s employment contract, the employer must apply for renewal with the labor regulator at least 30 days prior to the expiration of the original contract and complete the required work permit renewal procedures upon approval.
Section 19 A foreign national authorized to extend their employment in China or change their employer or work location must renew or update their residence permit at the local police office within 10 days.
Section 20 An employer must promptly report the termination of any employment contracts with foreign nationals to the appropriate labor regulator and police office, return the foreign national’s work permit and residence permit, and complete the departure procedures with the police office.
Section 21 Employers are mandated to compensate foreign employees at a rate no lower than the local minimum wage.
Section 22 Work hours, days off, leave, occupational safety and health standards, and social security for foreign nationals employed in China shall be governed by applicable Chinese law.
Section 23 The employer recorded on a foreign national’s work permit must be their actual employer.
A foreign national wishing to change employers without changing occupations or leaving the area specified by the issuing agency must first obtain approval from the issuing agency and complete the necessary procedures to obtain a new work permit.
A foreign national relocating outside the area specified by the issuing agency or changing occupations within the same area must complete the employment authorization procedures again.
Section 24 The labor regulator shall revoke the work permit of any foreign employee whose residence permit is canceled by a local law enforcement agency due to a violation of Chinese law, and their employer must terminate their employment contract.
Section 25 Labor disputes between an employer and a foreign employee shall be resolved pursuant to the Employment Act of the People’s Republic of China and the Labor Dispute Mediation and Arbitration Act of the People’s Republic of China.
Section 26 Labor regulators shall conduct annual reviews of work permits. Employers must complete annual review procedures for each foreign employee within 30 days prior to the anniversary of their employment with the issuing agency designated by the labor regulator. Failure to complete these procedures by the deadline will result in the automatic expiration of the work permit.
A foreign employee who loses or damages their work permit must immediately report such loss or damage and apply for a replacement or a new work permit at the original issuing agency.
Chapter 5 Penalties
Section 27 Foreign nationals found working without a valid work permit and employers employing foreign nationals without first completing the appropriate employment authorization procedures shall be subject to penalties imposed by law enforcement under §44 of the PRC Foreign National Border Crossing Administrative Regulations.
Section 28 Labor regulators shall revoke work permits of foreign nationals who fail to comply with agency work permit reviews, change employers or occupations, or extend their employment without proper authorization, and shall request law enforcement agencies cancel such foreign nationals’ residence permits. Foreign nationals or their employers shall be liable for any expenses incurred should a law enforcement agency determine that deportation is necessary.
Section 29 Labor regulators shall confiscate work permits and employment certificates assigned to foreign nationals or employers found to have falsified, tampered with, misused, or sold such documents, and impose fines ranging from 10,000 to 100,000 Yuan. Any such conduct that constitutes a crime shall be referred to the appropriate prosecutor’s office.
Section 30 Employees of issuing agencies or other government agencies who abuse their authority, collect improper fees, or engage in misconduct for personal gain shall be subject to administrative penalties or criminal liability if their actions constitute a crime.
Chapter 6 Miscellaneous
Section 31 The employment of Taiwan, Hong Kong, or Macao citizens in mainland China shall be governed by the Rules for the Employment of Taiwan, Hong Kong, and Macao Residents in Mainland China.
Section 32 These Rules do not apply to the employment of foreign nationals in Taiwan, Hong Kong, or Macao.
Section 33 Family proprietorships and individuals are prohibited from employing foreign nationals.
Section 34 Provincial, autonomous region, and home rule city labor regulators may issue local administrative rules under these Rules in conjunction with law enforcement agencies and other government agencies and must file such rules with the Ministry of Labor, Ministry of Public Security, Ministry of Foreign Affairs, and the Ministry of International Trade and Economic Collaborations.
Section 35 These Rules shall be subject to the interpretation of the Ministry of Labor.
Section 36 These Rules shall take effect on May 1, 1996. The previously issued Regulations for the Employment of Foreign Nationals Without Residence Permits and Foreign Students issued by the former Ministry of Labor and Human Resources and the Ministry of Public Security on October 5, 1987, is repealed on the same date.
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See CBL’s China Employment & Labor Law FAQ to learn more about how to succeed in China’s labor markets.
This article was translated into American English from the following government publication:
“外国人在中国就业管理规定”
https://www.gov.cn/zhengce/2022-08/31/content_5711314.htm