Analysis of the whole process and compliance points of Shanghai enterprises employing foreign employees

Analysis of the whole process and compliance points of Shanghai enterprises in hiring foreign employees

As an international metropolis, Shanghai attracts a large number of foreign talents to participate in urban construction and enterprise development. However, the employment of foreign employees must strictly abide by Chinese laws and regulations. From qualification review to employment management, every link involves complex compliance requirements. This article will combine Shanghai's local policies to systematically sort out the core processes and risk prevention and control points of foreign employees employed by enterprises, and provide operational guidelines for enterprises that can be landed.

1. enterprise qualification self-examination: clear access conditions and avoid basic risks

Shanghai enterprises must meet the following basic conditions for employing foreign employees:

1. legal business entity : the enterprise must have a valid business license and no record of serious violation of law and dishonesty. If you are engaged in special industries (such as education, medical care, and finance), you need to obtain pre-approval from the industry authority in advance. For example, an international school did not obtain a school permit from the education department, which led to the rejection of a foreign teacher's application for a work permit.
2. job necessity : the job must meet the requirements of "there is a temporary shortage of suitable candidates in China. Enterprises are required to provide job descriptions to clarify the irreplaceability of foreign employees. For example, a technology company was asked to supplement materials or adjust positions because it could not prove the "special skills" of foreign engineers.
3. Salary Standard : The salary of foreign employees shall not be lower than the minimum wage standard in Shanghai and shall match the job value. A manufacturing company was ordered by the labor inspection department to reissue the difference and fined for lowering the salary of foreign employees on the grounds of "market price.
4. classified management : according to the classification standard for foreigners working in China, foreign employees are divided into category a (high-end talents), category B (professionals) and category c (other personnel). Shanghai provides green channels for category A talents, for example:
• category A: Nobel laureates, senior executives of multinational enterprises, etc., can enjoy preferential approval, up to 5 years of work permits and other policies;
• category B: bachelor's degree and at least 2 years of relevant working experience are required, and the age is not more than 60 years old;
• category c: mainly for temporary and seasonal posts, such as foreign language teachers, models, etc., the necessity of the post shall be strictly examined.

2. Shanghai localization operation process: four steps to ensure compliance

step 1: job declaration and pre-approval
enterprises need to log on to Shanghai's "one netcom office" platform, submit the "overseas personnel job demand declaration form", and specify the job name, job requirements and reasons for "urgent shortage. For example, a biopharmaceutical company did not specify the "special skills" of foreign researchers, resulting in the application being returned for supplementary materials. Some areas of Shanghai (such as Pudong New Area) provide priority audit services for job declaration in key industries (such as integrated circuits and biomedicine).

Step 2: Apply for the "Foreigner Work Permit Notice"
Enterprises need to submit the following materials online:

• Employment Contract (salary, job responsibilities and contract term should be specified);
• diploma and working qualification certificate of foreign employees (subject to certification by the overseas study service center of the Ministry of education of China);
• certificate of no criminal record (subject to certification by embassies and consulates, class a talents can adopt the commitment system);
• physical examination certificate (issued by Chinese inspection and quarantine institutions or overseas designated medical institutions).
  a cross-border e-commerce company was fined 50000 yuan for failing to verify the no criminal record of foreign employees, resulting in 5 employees being found to be illegally employed.

Step 3: Visa Processing and Entry
Foreign employees apply for Z-visa from Chinese embassies and consulates abroad on the basis of the Notice of Work Permit for Foreigners. Within 24 hours after entering the country, you need to go to the police station of the place of accommodation for temporary accommodation registration and upload it to the "One Netcom Office" platform. A foreign engineer was warned by the public security organ and corrected within a time limit for failing to register in time.

Step 4: Work permit and residence permit "double certificate" processing

• work permit : within 15 days after entry, enterprises need to log on to the platform to supplement information, and bring the original materials to the Shanghai Foreigners Work Residence Service Center for on-site verification. After passing the examination, the certificate can be obtained within 5 working days.
• residence permit : within 30 days after entering the country, the enterprise shall assist the employees to submit their passports, work permits and medical certificates to the exit and entry departments of the public security organs to apply for work residence permits. Shanghai provides urgent service for Class A talents with residence permit, which can be completed within 3 working days at the earliest.

Special Situations :

• Employees who have entered the country : If the foreign employees have entered the country with other visas, enterprises are required to apply for a Notice of Work Permit for Foreigners before applying for a work-type residence permit.
• electronic certificate replacement : Shanghai will implement electronic certificate of work permit starting from 2024. foreign employees can present electronic certificate through the "with application" APP without carrying physical card.

3. risk prevention and control: three core points, build a strong compliance line

1. Labor contract management

• Term limit : The maximum labor contract is 5 years, and no fixed term clause can be agreed. An enterprise was ordered to rectify within a time limit due to the failure to extend the employee's residence permit after signing a 3-year contract with a foreign employee.
• Content compliance : The contract should specify the terms of salary, working hours, social insurance, etc. Foreign employees are required to participate in pension, medical, work-related injury, unemployment, and maternity insurance in accordance with the law, but citizens of countries that have signed social security bilateral agreements with China (such as Germany and Japan) can be exempted from paying part of the insurance with the insurance certificate.

2. Employment dynamic tracking

• annual inspection and change : Enterprises are required to handle annual work permit inspection for foreign employees every year, and within 10 days after the employee's resignation and passport change, he shall report to the public security exit and entry department. An enterprise was warned and corrected within a time limit for failing to cancel the leave employee's residence certificate in time.
• information update : if the enterprise name, address or foreign employee position changes, you need to log on the platform to update the information within 10 days and submit the change certification materials.

3. Closed loop of resignation management

• Early declaration : 10 days before the departure of foreign employees, enterprises are required to submit the resignation certificate and residence certificate cancellation application to the public security exit and entry department.
• document retention : keep the handover documents (such as work permit, access card recovery records) for at least 2 years for labor inspection or litigation evidence. An enterprise was sued by foreign employees for compensation because it was unable to provide a certificate of resignation.

Conclusion: Compliance Management for International Talents

The recruitment of foreign employees by Shanghai enterprises is a key measure to enhance international competitiveness, however, compliance operations need to run through the entire process of recruitment, employment and resignation. Enterprises need to establish a "person-to-person responsibility system", regularly participate in policy training organized by the commercial department, or introduce professional foreign-related human resources service agencies to build a full-process compliance management system. Only in this way can we effectively prevent and control legal risks while attracting international talents, and lay a solid foundation for the global development of enterprises.