What is "illegal employment of foreigners"?

According to article 43 of the Law of the People's Republic of China on the Administration of Departure and Re-entry, a foreigner who engages in any of the following acts is considered to be illegally employed: (1) Working in China without obtaining a work permit and a work-type residence permit in accordance with the regulations; (2) Working in China beyond the limited scope of the work permit; (3) A foreign student violates the regulations on the administration of work-study by working in China beyond the scope of the post or the time limit specified. According to Article 41 of the Law of the People's Republic of China on the Administration of Departure and Re-entry, foreigners who work within the territory of China shall obtain work permits and work-type residence permits in accordance with the regulations. No unit or individual may employ a foreigner who has not obtained a work permit or work-type residence permit.