Full Analysis of Qualifications for Enterprises to Employ Foreign Employees: Compliance Points from Enterprise Conditions to Individual Qualifications

Full analysis of the qualifications of foreign employees employed by enterprises: key points of compliance from enterprise conditions to individual qualifications

Under the background of increasingly fierce competition for global talents, the employment of foreign employees has become an important means to enhance international competitiveness. However, cross-border employment involves complex legal framework and qualification examination, and enterprises need to meet their own business conditions and individual qualification requirements of foreign employees at the same time, so as to ensure the legality and sustainability of employment behavior. The following is a systematic review of the core qualification standards for hiring foreign employees from the three dimensions of enterprise qualification, foreign employee qualification and industry special requirements.

1. enterprise qualification: building the basic framework for legal employment

1. industry access permission
• education field : the employment of foreign teachers is required to obtain the School Permit for Children of Foreign Personnel or the Permit for Sino-foreign Cooperation in Running Schools, and foreign teachers are required to hold the teacher qualification certificate of their home country and the language proficiency certificate certified by the Chinese Language Commission (such as TEFL/TESOL certificate). An international school was suspended by the education department for failing to verify the authenticity of the teacher's language certificate.
• Medical industry : Foreign doctors need to have a medical license in their home country, have more than 5 years of clinical experience, and pass the medical practitioner qualification examination organized by the Chinese health department. A private hospital was revoked for hiring foreign doctors who failed to pass the examination.
• culture and entertainment industry : foreign actors and models need to obtain "work permit for foreigners in China", and the performance content needs to be approved by the culture and tourism department. A brokerage company was fined and disqualified from applying for foreign performances in the next three years for arranging unauthorized foreign artists to perform.

1. business stability requirements
• registered capital threshold : the registered capital of an enterprise must meet a certain standard before foreign employees can be employed, and the specific amount varies from region to region. For example, Beijing requires enterprises to have a registered capital of not less than 2 million yuan, while Shanghai sets a differentiation threshold according to the type of industry (for example, 1 million yuan for science and technology enterprises and 3 million yuan for trading enterprises).
• tax and social security records : some cities require enterprises to provide tax payment certificates and social security payment records for nearly 12 months to assess business continuity. A start-up enterprise did not pay social security in time, resulting in foreign employees work permit application was rejected.
• proof of office space : the enterprise shall provide proof of its own property rights or office space with a lease term of not less than 1 year, and the area of the space shall match the size of the staff. A consulting company was found not to have the conditions to employ foreign employees because of the use of virtual office address.

1. compliance management system
• full-time personnel position : enterprises need to be equipped with full-time personnel who are familiar with foreign labor laws and regulations, or entrust professional institutions to manage affairs on behalf of foreign employees. A manufacturing enterprise because the personnel department did not understand the visa extension process, resulting in the expiration of the residence permit of foreign employees were detained.
• internal management system : it is necessary to establish the whole process management system such as attendance, salary and performance evaluation of foreign employees, and keep written records. A financial institution lost the labor arbitration and paid compensation because it was unable to provide foreign employee performance appraisal documents.
• Security measures : It is necessary to purchase commercial insurance (such as accident insurance and medical insurance) for foreign employees, and organize regular safety training. A foreign company did not provide safety training, resulting in foreign employees injured in the construction site after the successful claim, the enterprise bears the main responsibility.

2. foreign employee qualifications: key points of compliance review of personal qualifications

1. education and work experience certification
• education notarization : education certificates notarized by notary institutions in the home country and certified by Chinese embassies and consulates abroad are required. some positions (such as engineers and designers) require master's degree or above. A technology company faces the risk of legal proceedings because it did not verify the authenticity of the candidate's overseas academic qualifications and found that his certificate was forged after employment.
• work experience certificate : the work experience certificate issued by the former employer in the home country shall be submitted and notarized. Some technical positions (such as AI algorithm engineer) require more than 5 years of relevant experience, and need to provide project case evidence.
• mutual recognition of professional qualifications : some professional qualifications (such as certified public accountants and lawyers) need to pass the mutual recognition examination or evaluation organized by relevant departments in China. An accounting firm was suspended by the financial department for hiring foreign auditors who failed the mutual recognition examination.

1. health and safety review
• physical examination : foreign employees need to pass the physical examination of designated medical institutions, focus on screening infectious diseases (such as tuberculosis, AIDS), mental illness and major chronic diseases. The validity period of the medical examination report is usually 6 months, and it needs to be retested after the deadline. A food company hired foreign employees who failed to pass the medical examination, resulting in product exports blocked and bear huge losses.
• No criminal record certificate : No criminal record certificate issued by the notary office of the home country shall be submitted and certified by Chinese embassies and consulates abroad. Some industries (e. g. finance, education) have additional restrictions on the type of criminal record (e. g. no previous economic criminal record).
• security background investigation : foreign employees involved in national security, core technology and other sensitive positions need to undergo more stringent security review. A military enterprise was investigated for criminal responsibility after technology leakage due to failure to conduct background investigations on foreign employees in key positions.

1. language and cultural adaptability
• language proficiency requirements : non-native English speaking foreign employees need to provide proof of English proficiency (such as IELTS score above 6.5 or TOEFL score above 90), some positions (such as customer manager) require Chinese level to reach HSK5 or above. A multinational company due to the lack of Chinese communication skills of foreign employees, resulting in the loss of important customers.
• Cross-cultural training certificate : Some enterprises require foreign employees to provide cross-cultural communication training certificates (such as Cross-cultural Management Certification) to evaluate their ability to adapt to Chinese workplace culture. By introducing cross-cultural training, a manufacturing company has improved the efficiency of cooperation between foreign employees and local teams by 35%.
• Cultural Adaptability Assessment : Evaluate foreign employees' understanding of Chinese business etiquette and decision-making style through interviews, situational tests, etc. A consulting firm did not assess the cultural suitability of candidates, resulting in frequent conceptual conflicts with the team.

3. industry-specific requirements: qualification differentiation standards for subdivided fields

1. high-tech industries
• technical field restrictions : foreign employees need to engage in the work specified in the "high-tech fields supported by the state", such as artificial intelligence, biomedicine, new energy, etc. A technology company was found to be illegally employed and fined for arranging foreign employees to take up non-technical jobs.
• Intellectual Property Commitment : It is required to sign the Intellectual Property Confidentiality Agreement and promise not to disclose the core technology to overseas. A chip company did not require foreign employees to sign a confidentiality agreement, resulting in technology being copied by competitors and causing patent disputes.
• attribution of research and development achievements : the labor contract shall specify the attribution of achievements of foreign employees participating in research and development projects to avoid subsequent disputes. An Internet company was caught in an intellectual property lawsuit after the departure of a foreign employee because it did not agree on the attribution of the results.

1. financial service industry
• qualification requirements : foreign employees are required to obtain qualification certificates issued by China Securities Investment Fund Association, Banking Association and other institutions. A private equity fund was suspended by the CSRC for hiring foreign analysts who did not qualify as a fund practitioner.
• depth of background investigation : it is necessary to check the financial practice record of foreign employees in their home country, including whether they have been punished by supervision and whether there is any conflict of interest. A bank found that the candidate had been involved in insider trading after hiring because it did not investigate the candidate's overseas practice record.
• Compliance training records : Foreign employees are required to regularly participate in China's anti-money laundering, anti-terrorist financing and other compliance training, and keep training records. A payment institution was fined heavily by the central bank for failing to organize compliance training.

1. cultural and creative industries
• copyright review of works : foreign designers and artists need to provide copyright certificates to avoid infringement risks. A clothing brand was sued and compensated for economic losses due to the use of unauthorized designs by foreign designers.
• cultural values fit : it is necessary to evaluate whether the works of foreign employees conform to the mainstream values of Chinese society, so as to avoid public opinion disputes. An advertising company was boycotted by the public and lost multiple customers due to alleged discrimination in the advertising content designed by foreign employees.
• industry resource accumulation : some positions (such as curators and producers) require foreign employees to have local industry resources in China to promote the project landing. Due to the lack of local resources for foreign curators, a cultural institution lags behind in the preparation of the exhibition.

Conclusion

The qualification review of foreign employees employed by enterprises is the first line of defense in the global talent strategy. From corporate registered capital, industry access to foreign employees' academic qualifications, health, and cultural suitability, each qualification requirement carries a dual consideration of compliance risk and operational efficiency. In the future, with the application of digital technology (such as blockchain education certification and AI background investigation), the qualification review process will be more efficient and transparent, but enterprises still need to be guided by "substantive compliance" and build a full-process qualification management system covering recruitment, management and exit. Only in this way can we attract global talents and build a solid compliance foundation for the international development of enterprises.