How do Shenzhen enterprises employ foreign employees in compliance? Analysis of the whole process and core points

How do Shenzhen enterprises employ foreign employees in compliance? The whole process analysis and core points

With the acceleration of Shenzhen's internationalization process, more and more enterprises need to introduce foreign talents to enhance their competitiveness. However, the employment of foreign employees involves complex legal procedures and compliance requirements, and enterprises may face administrative penalties or even legal disputes if they operate improperly. This article will systematically sort out the core points of Shenzhen enterprises to employ foreign employees from the three dimensions of qualification review, process operation and risk prevention and control, and provide practical operation guidelines for enterprises.

1. enterprise qualification self-examination: clear entry threshold and avoid basic risks

Shenzhen 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 and medical care), you need to obtain pre-approval from the competent department of the industry in advance.
2. job necessity : the job must meet the requirements of "there is a temporary shortage of suitable candidates in China. For example, a technology company was unable to prove the irreplaceability of foreign engineers, resulting in the rejection of a work permit application.
3. Salary Standard : The salary of foreign employees shall not be lower than the minimum wage standard of Shenzhen 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). Enterprises need to choose corresponding categories according to job requirements, for example:
• category a: nobel prize winners, senior executives of multinational enterprises, etc., can enjoy preferential approval, up to 5 years of work permit 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 positions, such as foreign language teachers, models, etc.

2. the whole process operation guide: four steps to ensure compliance

step 1: pre-approval and job declaration
enterprises need to log in to Shenzhen foreign comprehensive service management platform, submit the "overseas personnel employment demand declaration form", and specify the job name, job requirements and the reason 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.

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 100000 yuan for failing to verify the no criminal records of foreign employees, resulting in 10 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 entry, you need to go to the police station where you live for temporary accommodation registration and upload it to the system. 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 civic center for on-site verification. After passing the examination, the certificate can be obtained within 7 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. An enterprise once failed to apply for a residence permit for its employees in time, resulting in administrative detention of its employees.

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 social security card replaces entity certificate : starting from December 2024, foreign employees with new work permits in Shenzhen can apply for electronic social security cards with work permit information without obtaining entity certificates.

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. For example, 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.
• non-competition compliance : if non-competition terms are agreed with foreign employees, the compensation standard and payment method should be clearly defined to avoid being invalid due to vague terms.

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.

Conclusion: the compliance cornerstone of global talent strategy

Shenzhen enterprises to employ foreign employees is the only way for international development, however, compliance operation is not a simple "certification process", but a systematic project involving law, taxation, human resources and other fields. Enterprises need to establish a "special post responsibility system", regularly participate in policy training organized by the business department, or introduce professional foreign-related human resources service agencies to build a full-process compliance management system from recruitment, employment to resignation. Only in this way can we effectively prevent and control legal risks while attracting international talents, and escort the global development of enterprises.