What are the key things that Chinese companies need to pay attention to when hiring foreign employees?
What are the key considerations for Chinese companies to hire foreign employees?
With the advancement of globalization, more and more Chinese companies have begun to introduce foreign employees to improve the level of team diversity and internationalization. However, hiring foreign employees must strictly abide by Chinese laws and regulations, involving qualification review, visa processing, social security payment and other procedures. The following provides systematic guidance for enterprises from policy requirements to landing management.
Clarify the qualification requirements of employers
Chinese companies must meet the following conditions to hire foreign employees:
- legal registration : enterprises must be established according to law, there is no record of serious violations of law and dishonesty, and the positions recruited must meet the special needs of "domestic temporary shortage of suitable candidates" and must not violate national regulations.
- salary standard : the salary paid to foreign employees shall not be lower than the local minimum wage standard, and the basic salary amount shall be clearly indicated in the labor contract.
- Pre-approval : If the position involves special industries (such as education and medical treatment), it needs to be pre-approved by the competent department of the industry.
- individual employment is prohibited : individual economic organizations and individual citizens are not allowed to employ foreign employees, only legal organizations such as corporate legal persons and social organizations.
Confirm qualifications for foreign employees
Foreign employees must meet the following basic requirements:
- age and health : at least 18 years of age, proof of health, no infectious diseases or mental disorders.
- No criminal record : No criminal record certificate and notarized documents valid for more than 6 months are required.
- professional skills : have the education background, work experience or vocational skills certificate (such as international general qualification certificate) matching with the position.
- legal documents : hold a valid passport or other international travel documents, and must have a definite employment unit in China.
Work Permit and Visa Procedures
- Employment Permit Application : Enterprises are required to submit the Employment Application Form for Foreigners to the Labor Department. And provide the resume certificate, employment letter of intent, health certificate and other materials of the foreign employee to be employed, and obtain the "Foreigner Work Permit Notice" after approval.
- work visa processing : foreign employees apply for Z visa (or apply according to the mutual visa exemption agreement) at Chinese embassies and consulates abroad on the basis of the Notice of Work Permit for Foreigners, and complete accommodation registration within 24 hours after entering the country.
- certificate issuance : after entering the country, you need to apply for a work permit for foreigners and a residence permit. the certificate is usually valid for one year, and you need to apply for an extension in advance when it expires.
Fulfilling Social Security and Labor Contract Obligations
- Social Security Payment : According to the Interim Measures for Foreigners Employed in China to Participate in Social Insurance, enterprises are required to pay basic old-age insurance, medical insurance, work-related injury insurance, unemployment insurance and maternity insurance for foreign employees. If the nationality of foreign employees signs a bilateral social security agreement with China, they can be exempted from part of the insurance payment obligation according to the agreement.
- Labor Contract Signing : Enterprises need to sign written labor contracts with foreign employees for a maximum period of not more than 5 years, and shall not sign labor contracts with no fixed term. The labor contract shall specify the core terms such as position, salary and working place.
Follow-up management and compliance risks
- Certificate consistency : the work unit of foreign employees must be the same as that indicated on the Work Permit for Foreigners, and they are not allowed to work part-time or across units.
- information change filing : if the foreign employee changes the employer, address or passport information, the enterprise shall timely report to the relevant departments and go through the certificate change procedures.
- illegal employment risk : if an enterprise employs foreign employees who have not obtained a work permit or exceed the scope of the permit, it will face penalties such as fines and confiscation of illegal income. if the circumstances are serious, it may be investigated for criminal responsibility.
establish a long-term talent management mechanism
- policy tracking : regularly pay attention to the update of China's entry-exit management and social security policies, timely adjust recruitment and management process.
- Cultural Integration Support : Provide foreign employees with language training and cultural adaptation courses to help them quickly integrate into the team.
- resignation procedure specification : when foreign employees resign, the enterprise needs to assist in handling the procedures such as cancellation of work permit and change of residence permit to avoid the risk of expired certificates.
In the context of globalization, the participation of foreign employees can bring value to enterprises in many aspects such as technology, management and culture. However, companies need to ensure the legality and efficiency of foreign employee recruitment and management by improving qualification review, process management and follow-up support on the premise of compliance. In the future, with the acceleration of international talent flow, enterprises need to embrace globalization with a more open attitude and build international teams with both professionalism and compliance.