Employment of foreigners: compliance conditions and operational points to be met by enterprises

Employment of Foreigners: Compliance Conditions and Operational Points for Enterprises

With the acceleration of globalization, enterprises' demand for cross-border talents is increasing, however, the employment of foreigners is subject to strict compliance with Chinese laws and regulations. From enterprise qualifications to personal conditions, from documents to labor management, each link has clear norms. The following combs the core conditions from the two dimensions of the enterprise and the individual, and analyzes the key operating processes.

1. enterprise qualification requirements: legal compliance is a prerequisite

1. legally established and no record of dishonesty
   enterprises must have legal business qualifications and no serious illegal dishonesty. For example, foreign-invested enterprises can directly apply for a license without the pre-approval of the industry authority; while domestic-funded enterprises need to provide business licenses, contracts and articles of association and other materials to prove the legality of their operations.
2. positions must meet the "domestic shortage" standard
   enterprises must prove that the positions they employ are special and there is a shortage of suitable candidates in China. For example, when a technology company recruits an Indian algorithm engineer, it is required to submit a job description stating that the position requires a specific technical background and that domestic talent is scarce.
3. the salary shall not be lower than the minimum standard
   the salary paid by the enterprise shall not be lower than the local minimum wage standard. If the contract does not specify the amount of basic salary, it may be returned for modification when applying for a work permit. For example, an enterprise in Beijing did not specify the lower salary limit in the contract, resulting in the rejection of work permit applications for foreign employees.

2. personal requirements: equal emphasis on professional skills and compliance

1. age and health conditions
   foreign employees must be at least 18 years old and in good health. For example, when a manufacturing company recruits German mechanical engineers, candidates are required to provide a recent medical report to ensure that they meet the physical requirements of the position.
2. professional skills and working experience
   professional skills required for the position and at least 2 years of relevant working experience are required. For example, when a financial company recruits risk control experts, candidates are required to provide a degree certificate and five years of industry experience.
3. no criminal record and legal identity
   foreign employees are required to provide proof of no criminal record (valid within 6 months of issuance) and a valid passport. For example, when an Internet company recruits a U.S. product manager, it requires him to submit a crime-free certificate certified by the embassy or consulate.

3. certificate processing process: the order cannot be reversed

1. employment permit application
   enterprises are required to fill in the application form for employment of foreigners and submit it to the competent department of the industry for approval. For example, when a biomedical company recruits British researchers, it needs to pass the approval of the Food and Drug Administration before applying for permission from the Human Resources and Social Security Department.
2. work visa processing
   foreign employees apply for z visa at Chinese embassies and consulates abroad on the basis of the notice of work permit for foreigners. For example, when an automobile company recruits Japanese designers, it is required to provide them with an invitation letter and license notice stamped with the official seal.
3. employment permit and residence permit
   within 15 days after foreign employees enter the country, enterprises need to apply for employment permit with labor contract, passport and other materials. On the 30th, you need to apply for a residence permit from the public security organ. For example, a cross-border e-commerce company failed to apply for a residence permit for foreign employees in a timely manner, resulting in a fine and a deadline for departure.

4. labor management points: rights protection and risk prevention

1. labor contract term limit
   labor contract shall not exceed 5 years, and no indefinite contract shall be signed. For example, if an enterprise signs a 3-year contract with a foreign employee, it needs to apply for an extension 30 days before the expiration of the contract, otherwise the employment permit will automatically become invalid.
2. social security payment obligation
   enterprises are required to pay five insurances (pension, medical care, work injury, unemployment and childbirth) for foreign employees, but the housing accumulation fund is not compulsory. For example, an enterprise in Shenzhen chooses to pay the provident fund voluntarily after consulting with foreign employees.
3. post change and resignation processing
   when foreign employees change employers or regions, they need to go through the permission or change procedures again. For example, when a foreign company transfers a foreign employee to a Shanghai branch, it needs to apply to the original issuing authority for a change of employment permit.

5. typical cases and risk tips

• case 1: illegal employment punishment
  an enterprise failed to apply for employment permits for foreign employees, was fined, and foreign employees were given a deadline to leave the country.
• case 2: risk of certificate expiration
  an enterprise failed to handle the annual inspection of employment permit for foreign employees in time, resulting in the certificate being invalid and the labor relationship being deemed illegal.
• case 3: impact of bilateral agreement
  when an enterprise recruits german engineers, it is not required to pay maternity insurance for them due to the mutual exemption agreement between china and germany, but it is required to provide insurance certificate.

Conclusion

The employment of foreigners requires both efficiency and compliance, enterprises need to control risks from qualification examination, certificate processing to labor management. It is recommended that enterprises establish a management ledger for foreign employees and regularly check the validity of certificates to avoid legal disputes due to procedural omissions. At the same time, pay attention to the dynamics of bilateral agreements and reasonably plan labor costs to achieve efficient allocation of cross-border talents.