China Employment Law Update - August 2012

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[Excerpt] At the end of June, the National People’s Congress passed the Law of the People’s Republic of China on Entry and Exit Control, which takes effect July 1, 2013. While there are existing regulations and notices related to the entry, exit and employment of foreigners, this is the first law in China to comprehensively address these issues. In the coming months, implementing regulations are expected on key provisions ranging from the new “talent” visa category to the employment of foreign students. Foreigners are prohibited from engaging in activities not consistent with the purpose of the visit or stay in China, which can be a basis for being denied future entry. A foreigner may be “removed” (qiansong chujing) from China for illegal residence or employment, and in such a case will not be permitted re-entry during the next one to five year period. Violation of the new law under “serious” circumstances may lead to “deportation” (quzhu chujing), resulting in a 10-year bar. Foreign nationals may also be subject to administrative fines depending on the type of violation, and even be detained for five to 15 days. A foreign national is deemed to be illegally employed if he or she: (1) works without having secured either a work permit or related residence permit; (2) engages in activities beyond the scope permitted by the work permit; or (3) is a foreign student engaging in activities beyond the scope permitted by the work- study position. Employers may be subject to fines of RMB10,000 per illegally employed person, up to a maximum of RMB 100,000, as well a confiscation of any income derived from the illegal employment.

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2012-08-01
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Baker & McKenzie; China; employment law
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Required Publisher Statement: Copyright by Baker & McKenzie. Document posted with special permission by the copyright holder.
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