• What is the gene ral visa requirement to enter China?
• What types of visas are available?
• What other documents are required for the application of a visa?
• How can one obtain a “Z” visa?
• What is required for an employment approval letter?
• What is required for an employment visa notification letter?
• What is the first thing to do after entering China?
• When is a medical health check required?
• When is a work permit needed?
• What are the documents required for a work permit?
• How is a residence permit obtained?
• What kind information is required for the residence permit?
• Can an expatriate open a Chinese bank account?
• Can an expatriate hold a Chinese driver’s license?
• What is the aim of the labor contract law?
• Has the role of the union changed at all according to labor contract law?
• Does the scope of the labor contract law extend to employee responsibilities as well?
• Which government body is responsible for the administration of employment law in China?
• How can FIEs recruit local and foreign employees?
• Is there a minimum wage requirement in China?
• Are Chinese employees entitled to receive subsidies?
• What are the standard employment terms in China?
• How can I terminate the employment of a local employee?
• How are labor disputes generally resolved in China?
• What are the requirements for foreign employees to work in China?

Labor law

What is the general visa requirement to enter China?

Visas are required for all foreign nationals wishing to enter China. Individuals should apply for visas at a Chinese diplomatic mission, embassy, and consulate or with other representatives in foreign countries authorized by the Ministry of Foreign Affairs prior to their departure. Documentation and processing times vary among embassies.

What types of visas are available?

Depending on the status and type of passport held by a foreign national, a diplomatic, courtesy, business or ordinary visa may be issued. These are designated by identification letters that correspond to the purposes of the individual visit.

Visa Type - Details, Information and Documentation Required

D Issued to a person who plans to reside permanently in China A residence confirmation form applied for by the applicant or an entrusted relative in China at the entry-exit control department of the municipal or county public security bureau where the applicant intends to reside

Z Issued to a person who enters China to take up employment and to that person’s accompanying family An “Employment Approval Letter” and “Employment Visa Notification Letter” issued by an authorized unit

F Issued to a person who has been invited to visit China for no longer than six months for business, seminars and fact-finding purposes; for scientific, technical or cultural exchanges; for short-term continuing or practical training; or for any other such activities An invitation extended by an authorized unit

X Issued to a person who enters China for study, further education or practical training for six months or longer A certificate issued by the receiving unit or the relevant department in charge

G Issued to a person who passes through China in transit A valid visa for the country (region) to which the applicant intends to travel next or, in the absence of such a visa, an onward ticket

What other documents are required for the application of a visa?

· A valid passport or an equivalent certificate of identification

· A completed visa application form

· Passport-size photographs

Family members of a working expatriate do not automatically receive the same type of work visa as the expatriate, i.e. they must apply independently for their own visas. In addition, subject to the decision of the local government, children of working expatriates may be required to obtain student visas to attend schools in China.

For Hong Kong and Macau residents with Chinese nationality, they may enter China directly (no visa required) with “Huixiangzheng” (the Hong Kong and Macau resident entry permit). For Taiwanese residents, they may apply for a "Taibaozheng" (the Taiwanese resident entry permit).

How can one obtain a “Z” visa?

In some PRC cities, expatriates who intend to work in China may be allowed to enter the PRC by using “F” Visa first and then apply for “Z” visa after arrival. This is, however, subject to the local government’s discretion. It is recommended to first check which visas are acceptable for your destination in China before departure.

To apply for a “Z” visa at the local embassy prior to arrival in China, the PRC employer should first provide the following documents to the expatriate to support his application:

· Employment Approval Letter
· Employment Visa Notification Letter

What is required for an employment approval letter?

The PRC employer needs to apply to the Local Labour Bureau for an “Employment Approval Letter” before hiring an expatriate. The following documents are required for the application:

From the Expatriate

· Passport (copy)
· Resume
· Reference letter from previous employer
· In some PRC cities a certificate of health is also required
 
From the PRC Employer

· Approval certificate (copy)
· Business licence (copy)
· Unified Code certificate (copy)
· Reference letter for the expatriate (original)
· Application form and application letter

What is required for an employment visa notification letter?

Besides the Employment Approval Letter, the PRC employer should also apply for an “Employment Visa Notification Letter” at the local office of the Foreign Trade and Economic Commission. Documents required include:

Expatriates based in China and work for PRC entities should undergo medical health check, apply for foreigner residence permits and foreigner work permits. These requirements and procedures vary from area to area within the PRC.

From the Expatriate
 

· Passport (copy)
 

From the PRC Employer

· Business licence (copy)
· Unified Code certificate (copy)
· Application form and application letter
· Employment Approval Letter 

What is the first thing to do after entering China?

Within 24 hours of arrival in China, an expatriate (and dependants) should apply for a temporary residence permit. The hotel at which the expatriate is staying normally handles such applications.

When is a medical health check required?

If an expatriate intends to take up permanent residence or stay in China for one year or more, he or she (and including all adult dependants) is obliged to undergo a health check. The health check should be carried out in China after the expatriate’s arrival. However some Chinese embassies may request visa applicants to take this health check in the country of residence prior to their departure. It is recommended that applicants confirm details with the local Chinese embassy as to the exact arrangements required.

When is a work permit needed?

Expatriates intending to work in China for more than 3 months should obtain a work permit from the local branch of Labour Bureau. Work permits will in general be granted to qualified expatriates (either through educational qualifications, work experience or both) filling positions of technology, management or to others requiring skills that cannot be filled by domestic candidates.

What are the documents required for a work permit?

Expatriate

· Passport (original and copy)*
· Passport-size photos
· Medical report (copy)
· Temporary residence permit (original and copy)
· Resume
· Reference letter from previous employer

PRC Employer

· Business licence (copy)
· Unified Code certificate (copy)
· Employment Contract (in Chinese)
· Employment Approval Letter
· Application form and application letter 

“Previous employer” refers to the legal entity employing the expatriate immediately prior to arrival in China and fax copy of reference letter is usually acceptable. This is not required if a copy of a suitable educational certificate (diploma) can be produced.

Hong Kong and Macau residents may present their identification cards and "Huixiangzheng". Taiwan residents may present their "Taibaozheng".

How is a residence permit obtained?

The PRC Public Security Bureau is the authority in-charge. Expatriates may obtain residence permits valid for one to five years and these permits may be renewed for an unspecified number of times.

What kind information is required for the residence permit?

The required information includes:

Expatriate and the family

· Passport (original and copy)
· Passport-size photos
· Medical report (original)
· Temporary residence permit (original)
· Work Permit (original)
· Marriage certificate for spouse (copy)
· Birth certificate for child or adoption certificate (copy)

PRC Employer

· Approval certificate (copy)
· Business licence (copy)
· Unified Code certificate (copy)
· Application form

Can an expatriate open a Chinese bank account?

Expatriates can open local bank accounts after their work permits have been issued.

Can an expatriate hold a Chinese driver’s license?

China does not have reciprocity with any country. Expatriates need to take driving tests and obtain Chinese licenses.

What is the aim of the labor contract law?

The proposed law aims to expand worker protections by giving increased leverage to unions as well as attempting to outline some basic reciprocal employer-employee
responsibilities. Among them, the law attempts to delineate the terms of probationary periods of employment, employment termination and severance compensation more favorably with respect worker interests.

Has the role of the union changed at all according to labor contract law?

Increased authority has been lent to trade unions to act as employee representatives, secure worker rights and function, more generally, as a workplace watchdog is a prominent feature of the legislation. Unions will be empowered to negotiate and consent to employer policies, regulations and mass labor terminations. Individual employees also stand to receive severance compensation should their "fixed term" contract expire without renewal.

Does the scope of the labor contract law extend to employee responsibilities as well?

In an effort to improve the Chinese intellectual property (IP) environment, it provides employers avenues by which to use and enforce "non-compete clauses" in their labor contracts. Such laws charge current and former employees privileged with knowledge of trade secrets or IP with a set of fiduciary responsibilities aimed to protect confidential material of the company from which it came.

Which government body is responsible for the administration of employment law in China?

The Ministry of Labor and Social Security (the Ministry) formed in 1998 when the PRC Labor and Social Securities Ministries were merged. The Ministry is responsible for formulating national labor and social security policies. The labor and social security bureaus, which sit beneath the Ministry, are responsible for administering the national and local regulations.

How can FIEs recruit local and foreign employees?

FIEs may recruit Chinese employees directly or through local employment service centers. Foreign nationals, however, require approval from the local labor bureau and the employer must demonstrate why local employees cannot fill the position or do not otherwise qualify.

Is there a minimum wage requirement in China?

The Labour Law provides a minimum wage requirement, which is determined at a provincial level. The 1993 Regulations on Minimum Wages in Enterprises (amended in October 1994) require all provinces, autonomous regions, and directly administered municipalities to set minimum wage standards and report them to the Ministry. Employers that fail to meet these standards may be ordered to compensate employees for the difference, pay other compensation, or both. Employers must also deduct and withhold employee individual income tax, social security and related payments.

Are Chinese employees entitled to receive subsidies?

Employers must pay living subsidies and provide medical treatment allowances for all PRC employees. Employers and employees must also participate in the PRC social insurance system for unemployment, old age pensions, medical treatment, work-related injuries and maternity care. In addition to these mandatory subsidies, employers may also introduce incentive schemes such as bonuses or allowances. These schemes must be paid out of an employee bonus and welfare fund which is created from the employer's after-tax profits.

What are the standard employment terms in China?

The standard workweek is five, eight-hour days. Enterprises requiring different standards may, with approval from the local labor administration, adopt flexible work systems.

Restrictions apply to overtime work. Overtime may not exceed one hour a day and 36 hours a month, although, under special circumstances and subject to agreement with trade unions and employees, this may be longer. Standard overtime wages are:

• 150% of regular wage for overtime
• 200% of regular wage for work on rest days
• 300% of regular wage for work on statutory holidays

Employees are only entitled to annual leave after one year's service with the same employer. The amount of annual leave varies according to work obligations, qualifications, and other factors, but normally does not exceed two weeks a year. Employees are also entitled to home leave if they are required to live away from their spouse or parents. Employees visiting their spouse are entitled to 30 days home leave per year. Home leave to visit parents is either 20 days per year or 20 days per four years, depending on whether the employer is married.

How can I terminate the employment of a local employee?

Employment termination is complicated in the PRC and employers should exercise caution when sacking employees. Employers may dismiss employees without notice only when the employee:

• is dismissed during the statutory probation period;
• has seriously violated workplace rules;
• causes great losses to the employer due to serious dereliction of duty, embezzlement or another criminal offence; or
• is being investigated for a criminal offence.
• Employers may otherwise dismiss employees, by first giving 30 days' notice only when the employee:
• is unable to take up his original or any new work upon returning from non-work-related medical treatment for illness or injury;
• is unqualified for his job and remains unqualified even after receiving training or an adjustment to another work post; and
• is unable to agree with the employer, after mutual consultation, to modify his labour contract when the purpose for which he was originally hired was significantly changed or no longer exists.

Employers may not dismiss employees when they:

• suffer from a work-related sickness or injury that has been medically confirmed as having completely or partially caused by the employee to lose the ability to work;
• suffer from an illness or injury for which medical treatment within a specified period is allowed; or
• are pregnant, on maternity leave or within the specified period for nursing.

The Provisions Concerning Economic Redundancy in Enterprises (effective January 1, 1995) allow employees to be laid-off or dismissed for economic reasons, such as when the employer:

• faces bankruptcy;
• undergoes statutory reorganization Court order; or
• falls into 'serious operational difficulty' as defined by the local government.

Employers however must give priority to laid-off employees if they recruit again within six months after a layoff.

How are labor disputes generally resolved in China?

The PRC Regulations Concerning the Handling of Labour Disputes in Enterprises and the Provisional Regulations on Handling of Personnel Disputes establish the procedures for handling labour disputes. Under the dispute regulations, parties are encouraged to settle labour disputes by negotiation or mediation. If neither of these works, the parties must resort to compulsory arbitration before they may initiate legal proceedings.

What are the requirements for foreign employees to work in China?

Foreign nationals may work in the PRC only after obtaining Employment Permits and Residence Certificates except where they:

• are a professional technician or management personnel employed directly by the Chinese Government;
• hold a Foreign Expert Certificate issued by the Foreign Expert Bureau and are employed by state authorities or public institutions;
• have specialized skills working in offshore petroleum operations without the need to go ashore and hold a Work Permit for Foreign Personnel Engaged in Offshore Petroleum Operations in the PRC; or
• engage in commercial activities with the approval of the Ministry of Culture and hold a permit to conduct temporary commercial activities.

What are employment units as referred in China?

Employment units are organizations such as enterprises, individual economic organizations, private non-enterprise entities, State organs, public service units and social associations in China 

What documents shall the employment units provide when recruiting new employees through public employment service institutions, employment agencies or recruitment meetings?

When entrusting public employment service institutions and employment agencies with recruiting people or attending recruitment meetings, employment units shall provide a recruitment introduction and show their business licenses and relevant documents. The recruitment introduction shall contain basic information of the employer, the contents of the job, requirements, payment, welfare treatment, social insurance, etc. Also, employment units shall disclose true information about the contents of the job, work conditions, work place, dangers of the job, production safety, payment and other information that applicants require.  

What are the prohibitions prescribed for employment units to recruit new employees in the Provisions?

When recruiting people, employment units shall not use gender as an excuse to reject women or raise standards for women, except in jobs and positions that are not suitable for women as provided in the State regulations. No restrictions on female employees related to marriage and maternity issues shall be imposed in employment contracts. Employers shall not reject carriers of pathogens of infectious diseases, except for the jobs that are prohibited to be conducted by hepatitis B virus carries as stated in the laws and regulations. The report of the applicant’s hepatitis B virus status shall not be taken as a compulsory standard for recruitment. Migrant workers from villages shall enjoy equal employment rights as urban laborers. No discriminatory restrictions shall be imposed on rural migrant workers. 

What punishment will the employment units receive if they go against the prohibitions? 

A compulsory rectification order and penalty of RMB1,000 or lower may be imposed by the Ministry of Labor and Social Security on employment units that have violated the regulations. The employment unit shall undertake liability for compensation if any personal injury is caused.  

What service shall public employment service institutions provide?

Public employment service institutions shall provide free services on employment policies and regulations, information on job market supply and demand, salary index and career training information, career guidance and introduction and employment assistance.

What rules should these service institutions conform to when providing employment services?

Public employment service institutions shall not engage in profit making activities. No charge may be collected from laborers for recruitment meetings. Agency charges shall be returned if the employment agency cannot help a laborer in their application.

Who will receive employment assistance according to the Provisions? 

The targets of the employment assistance mentioned in the Provisions include people with employment difficulties and unemployed families. People with employment difficulties mean those who encounter difficulties in employment due to their physical disability, technical skill, family reasons, loss of land and those unemployed for a certain period of time. Unemployed families refer to citizens’ families where all members of working age are unemployed.