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Rules for the Administration of Employment of Foreigners in China

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Chapter IV

Labor administration

Article 18 The employer and its foreign employee should, in accordance with law, conclude a labor contract, the term of which shall not exceed five years. Such contract may be renewed upon expiration after the completion of clearance process in accordance with Article 19 of these Rules.

Article 19 The Employment Permit of the employed foreigner shall cease to be effective upon the expiration of the term of the labor contract between the foreigner and his employer. If renewal is required, the employer should, within thirty days priors to the expiration of the contract, submit an application to the labor administrative authorities for the extension of term of employment, and after approval is obtained, proceed to go through formalities for the extension of the Employment Permit.

Article 20 The foreign employee should, within ten days after obtaining the approval for extension of his term of employment in China or the change of his employment location or his employer, go through formalities for the extension or change of his residence certificate at the local public security organs.

Article 21 After the termination of the labor contract between the foreign employee and his employer, the employer should promptly report it to the labor and public security authorities, return the Employment Permit and the residence certificate of the said foreigner, and go through formalities for his exit from China.

Article 22 The wage paid to the foreign employee by the employer shall not be lower than the minimum wage in the locality.

Article 23 The working hours, rest and vacation, work safety and hygiene as well as the social security of the foreign employees in China shall follow the relevant provisions of the state.

Article 24 The employer of the foreign employee in China shall be the same as specified in his Employment License.

When the foreigner switches employers within the area designated by the Certificate Office but stays in a job of the same nature, the change must be approved by the original Certificate Office and recorded in his Employment Permit.

If the foreigner is to be employed outside the area designated by the Certificate Office or switch employer within original designated area while taking up jobs of a different nature, he must go through formalities for a new Employment License.

Article 25 For foreigner whose residence status is revoked by public security organs due to his violation of Chinese law, his labor contract should be terminated by his employer and his Employment Permit be withdrawn by the labor administrative authorities.

Article 26 Should the labor disputes arise between the employer and its foreign employee, they should be handle in accordance with the Labour Law of the People's Republic of China and the Regulations of the People's Republic of China on Settlement of Labour Disputes in Enterprises.

Article 27 The labor administrative authorities shall conduct an annual inspection of the Employment Permit. Within thirty days prior to the end of every year of employment of the foreigner, the employer should go through formalities of the annual inspection at the Certificate Office of the labor administrative authorities. The Employment Permit shall automatically cease to be effective when the deadline is passed.

In case of loss or damage of the Employment Permit during the term of his employment in China, the foreigner should promptly report it to the original Certificate Office and go through formalities for the issuance of the Employment Permit.