With expatriates working in China becoming more common, how to effectively manage foreign-related relations has become one of the top concerns for many executives.

随着在中国工作的外籍人士越来越多，如何有效管理涉外关系已成为许多高管最关心的问题之一。

Compared to the management of domestic employees, foreign-related labor relations are more complicated. On the one hand, the employment of foreign personnel involves administrative procedures that are different from general labor relations. On the other hand, foreign-related labor relations are limited by a series of special legal norms. Moreover, foreign employees generally have higher salaries, which means that once a labor dispute arises, the cost will inevitably be higher than average.

Given these circumstances, companies have been paying growing attention to legal provisions related to foreign employee management, to avoid legal risks and prevent labor disputes to the greatest extent.

在这种情况下，企业越来越重视外籍员工管理的相关法律规定，以规避法律风险，最大程度地预防劳资纠纷。

In this article, we introduce the “special features” that apply to foreign employees in labor relations management.

本文将介绍外籍员工在劳动关系管理中的“特殊性”。

A work permit and a residence permit are mandatory for hiring expatriates

雇用外籍人士必须持有工作许可证和居留许可证

In addition to a written labor contract, to legally work in China, a foreign employee must obtain a work permit and a residence permit. Only in this way, an expatriate will be deemed to have established a labor relationship in China and be protected by the Chinese labor laws.

除书面劳动合同外，外籍员工要在中国合法工作，还必须获得工作许可和居留许可。只有这样，外籍雇员才被视为在中国建立了劳动关系，并受到中国劳动法的保护。

Without a work permit and residence permit, the provision of labor to a company in China means the expatriate is illegally employed, which may lead to penalties for both the company and the foreign employee.

如果没有工作许可和居留许可，向中国公司提供劳务就意味着外籍人士属于非法就业，公司和外籍员工都可能因此受到处罚。

Should a dispute arise between the foreign employee and the employer, it falls out of the scope of labor arbitration and will be subject to other general laws and regulations.

如果外籍雇员与雇主之间发生争议，则不属于劳动仲裁的范围，而应适用其他一般法律法规。

Accordingly, the following procedures shall be strictly followed when hiring foreigners:

因此，在聘用外国人时应严格遵守以下程序：

Step 1: Applying for a “Notification Letter of Foreigner’s Work Permit in China”. Before a foreigner enters China, the prospective employer shall first apply for a Notification Letter of Foreigner’s Work Permit in China for the foreigner. Only after obtaining approval and the notification letter may the company hire the foreigner.

第一步：申请《外国人来华工作许可通知书》。外国人来华前，用人单位应首先为其申请《外国人来华工作许可通知书》。只有在获得批准并取得通知书后，公司才能聘用该外国人。

Step 2: Apply for a work visa. The foreigner who has been approved to come to China for employment shall apply for a work visa (Z-visa or R-visa) at the Chinese embassy/consulate abroad on the strength of the Notification Letter of Foreigner’s Work Permit in China and other required documents.

第二步：申请工作签证。获准来华就业的外国人凭《外国人来华工作许可通知书》及其他必要材料，向中国驻外使领馆申请工作签证（Z字签证或R字签证）。

Step 3: Apply for a “Foreigner’s Work Permit in China” (work permit）. Within 15 days after the entry of the employed foreigner, the employer shall apply for a work permit for the foreigner.

第三步：办理《外国人在华工作许可证》（简称“工作许可证”）。外国人入境后 15 日内，用人单位应为其申请工作许可。

Step 4: Apply for a residence permit. The foreigner who has applied for a work permit shall, within 30 days after entering China, present the work permit to the Bureau of Public Security to apply for a residence permit.

第四步：申请居留许可。申请工作许可的外国人应在入境后30日内，持工作许可到公安机关申请居留许可。

In practice, a foreigner who enters China with a work visa also needs to go to the designated medical institution for a physical examination first, and only after passing the physical examination can he/she apply for a work permit. It should be noted that the above procedures for hiring foreigners are also applicable to foreigners who are sent by foreign headquarters to work in China but do not sign contracts with Chinese entities.

在实际操作中，持工作签证入境的外国人也需要先到指定的医疗机构进行体检，体检合格后方可申请工作许可。需要注意的是，上述聘用外国人的程序也适用于由外国总部派遣来华工作但未与中方单位签订合同的外国人。

If a company in China employs foreigners without following the stipulated procedures, the company will not only have to terminate the foreign employee but also face a fine between RMB 10,000 and RMB 100,000. The company will also bear all the costs for repatriating the illegally employed foreigners.

如果中国公司未按规定程序聘用外国人，该公司不仅要解雇外籍员工，还将面临1万至10万元人民币的罚款。公司还将承担遣返非法雇佣的外国人的所有费用。

The expatriates working in China without a work permit or a residence permit may be fined between RMB 5,000 and RMB 20,000, in addition to being terminated. In some extreme cases where the situation is serious, the foreigner could also be detained for a period of 5 days to 15 days, or even be ordered to leave China within a time limit.、

无工作许可或居留许可在中国工作的外籍人士除被解雇外，还可能被处以 5,000 元至 20,000 元人民币的罚款。在一些情节严重的极端情况下，外籍人士还可能被拘留5天至15天，甚至被勒令限期离境。

There are strict restrictions on the use of foreign interns

对使用外国实习生有严格限制

Under relevant Chinese laws, employers can only recruit foreign students who are studying in universities in China as interns. In addition, for a legal internship, foreign students should obtain the consent of their schools and go to the exit-entry administration agency of the Bureau of Public Security to complete the internship endorsement procedures.

根据中国相关法律规定，用人单位只能招收在中国高校就读的外国学生实习。此外，外国留学生要想合法实习，必须征得学校同意，并到公安机关出入境管理机构办理实习签注手续。

That is to say, foreigners who have graduated and foreigners who are not studying in universities in China cannot work in a company in China under an internship agreement.

也就是说，已毕业的外国人和未在中国高校就读的外国人不能根据实习协议在中国的企业工作。

Foreign employees are prohibited from labor dispatch, business outsourcing, and cross-region part-time work

禁止外籍员工从事劳务派遣、业务外包和跨地区兼职工作

According to the relevant laws and regulations of China, the employer of a foreigner working in China must be consistent with the employer indicated on his/her work permit.

根据中国的相关法律法规，在中国工作的外国人的雇主必须与其工作许可证上注明的雇主一致。

This indicates that foreign employees cannot be recruited through labor dispatch and business outsourcing, under which the employees work for companies other than the employers indicated in the labor contract.

这表明，不能通过劳务派遣和业务外包招聘外籍员工，因为在劳务派遣和业务外包中，员工为劳动合同中注明的用人单位以外的公司工作。

On the other hand, it also means that foreign employees shall only provide labor in the region where the employer is based. Accordingly, employees are not allowed to take part-time jobs across regions.

另一方面，这也意味着外国雇员只能在雇主所在地区提供劳动。因此，雇员不得跨地区兼职。

Once the employer changes, the work permit and residence need to be renewed

一旦雇主变更，工作许可证和居留证也需要更新

Since the employer must be consistent with the one indicated in the work permit, foreigners who change their employers need to go through the formalities for changing their work permits and residence permits promptly.

由于雇主必须与工作许可中注明的雇主一致，因此更换雇主的外国人需要及时办理工作许可和居留许可的变更手续。

Both the old and new employer should actively assist in the changing procedures. Otherwise, the old and new employers would likely constitute illegal employment. This would lead to legal responsibilities such as a fine of up to RMB 2,000.

新老雇主都应积极协助办理变更手续。否则，新老雇主很可能构成非法用工。这将导致法律责任，如最高罚款 2000 元人民币。

Non-fixed-term labor contracts do not apply to foreign employees

非定期劳动合同不适用于外籍员工

Article 17 of the Regulations on the Administration of Employment of Foreigners stipulates that the term of a foreign employee’s labor contract shall not exceed five years. That is, non-fixed term labor contracts (also referred to as open-ended labor contracts) cannot be applied to foreign employees.

《外国人就业管理条例》第17条规定，外籍员工的劳动合同期限不得超过五年。也就是说，非固定期限劳动合同（也称无固定期限劳动合同）不能适用于外籍员工。

If it is necessary to renew the expatriate’s labor contract, the enterprise shall renew the labor contract only after obtaining the approval of the local labor administrative department and completing the procedures for the extension of the work permit within 30 days before the expiration of the original labor contract.

如需与外派人员续签劳动合同，企业应在原劳动合同期满前30天内，经当地劳动行政部门批准并办理工作许可延期手续后，方可续签劳动合同。

Foreign employees’ social insurance payments can be exempted under bilateral social insurance exemption agreements

根据双边社会保险豁免协议，外国雇员的社会保险费可以免缴

Foreign employees working in China have been required to participate in China’s social insurance scheme starting from 2011 when the Ministry of Human Resources and Social Security (MOHRSS) released the Interim Measures for the Participation in Social Insurance of Foreigners Employed in China.

自2011年人力资源和社会保障部（MOHRSS）发布《在中国就业的外国人参加社会保险暂行办法》以来，在中国工作的外籍员工被要求参加中国的社会保险。

However, since social insurance is managed at the regional level, a range of inconsistencies exist among cities. For example, cities such as Beijing, Tianjin, Shenzhen, and Nanjing treat foreign employees the same way as domestic workers, meaning that social insurance payments are compulsory.

然而，由于社会保险由地区一级管理，各城市之间存在一系列不一致的情况。例如，北京、天津、深圳和南京等城市将外籍员工与国内工人同等对待，即强制缴纳社会保险。

On the other hand, Shanghai does not currently require foreign employees to contribute towards social insurance. In Dalian, foreign employees are only required to pay pension and medical insurance.

另一方面，上海目前不要求外籍员工缴纳社会保险。在大连，外籍员工只需缴纳养老和医疗保险。

Foreign employees are also eligible for social insurance exemptions if they come from countries that have social insurance exemption agreements with China.

如果外籍员工来自与中国签订了社会保险免缴协议的国家，他们也有资格享受社会保险免缴待遇。

To date, 12 countries have reached such agreements with China and 11 such agreements have been implemented between China and the following countries: Germany, South Korea, Denmark, Canada, Finland, Switzerland, the Netherlands, Spain, Luxembourg, Japan, and Serbia. China has signed agreements with France, but it is not yet in effect.

迄今为止，已有 12 个国家与中国达成了此类协议，中国与下列国家之间也已执行了 11 项此类协议：德国、韩国、丹麦、加拿大、芬兰、瑞士、荷兰、西班牙、卢森堡、日本和塞尔维亚： 德国、韩国、丹麦、加拿大、芬兰、瑞士、荷兰、西班牙、卢森堡、日本和塞尔维亚。中国已与法国签署协议，但尚未生效。

The exemption scope and qualifications may vary from one agreement to another, and the local social insurance bureaus may have different policies toward the implementation of the exemptions. Employers should consult and apply with the local bureau in charge before they decide not to contribute to their foreign employees.

各协议的豁免范围和资格可能有所不同，当地社会保险局对豁免的执行也可能有不同的政策。雇主在决定不为其外籍雇员缴费之前，应向当地主管社保局咨询并提出申请。

Notably, expatriates are generally not required to contribute to the housing fund scheme. Nevertheless, many cities allow foreigners to make housing fund contributions voluntarily. This is a measure to attract talent.

值得注意的是，一般不要求外籍人士缴存住房公积金。不过，许多城市允许外籍人士自愿缴存住房公积金。这是一项吸引人才的措施。

Judicial practice may allow mutual agreement on “termination conditions” with foreign employees

司法实践可能允许与外籍雇员就“解雇条件”达成相互协议

According to Article 21 and Article 22 of Administrative Provisions on Employment of Foreigners in China, foreign employees’ wages, working hours, rest, leave, working safety, occupational health, and social insurance shall comply with the rules of the PRC. It means that other terms of the contract can be further negotiated and agreed by employer and employee, such as termination conditions. This is particularly the mainstream view of Shanghai judicial organs at present.

根据《外国人在中国就业管理规定》第二十一条和第二十二条，外籍员工的工资、工时、休息、休假、劳动安全、职业健康和社会保险应符合中华人民共和国的规定。这意味着合同的其他条款可以由劳资双方进一步协商和约定，如终止条件等。这尤其是目前上海司法机关的主流观点。

Nevertheless, except for Shanghai, most other provinces and cities have adopted the statutory conditions for termination: the Labor Contract Law applies to the adjudication or judgment of labor dispute cases in which foreign employees have obtained employment permits.

不过，除上海外，其他省市大多采用了法定解除条件：外籍员工取得就业许可证的劳动争议案件的裁决或判决适用《劳动合同法》。

For example, Beijing has not issued special provisions on the employment management of foreigners but has established the enforce ability of China’s labor laws and regulations in the process of trial. In the Opinions on the Application of the Labor Contract Law, the Guangdong Provincial High Court proposed that the Labor Contract Law would apply to foreigners’ employment in Guangdong.

例如，北京市虽未出台外国人就业管理的专门规定，但在试行过程中确立了我国劳动法律法规的可执行性。广东省高院在《关于适用〈劳动合同法〉的意见》中提出，外国人在广东就业适用《劳动合同法》。

Therefore, Shanghai shall be the most flexible city that can accept the agreed terms and conditions of the contract between the employer and the foreign employee except for the mandatory clauses.

因此，除强制性条款外，上海应是最灵活的城市，可以接受雇主与外籍雇员之间商定的合同条款和条件。

Foreign employees do not strictly enforce the Chinese retirement age

外籍员工没有严格执行中国的退休年龄

Although there is usually an age limit for the application of foreigners’ employment permits, foreigners who have exceeded the statutory retirement age in China are not prohibited by Chinese laws from working in China.

虽然外国人申请就业许可通常有年龄限制，但中国法律并不禁止超过中国法定退休年龄的外国人在中国工作。

In the case where the foreign employee has reached the retirement age while the employment permit has not expired, the employer cannot simply terminate the foreign employee just because the foreign employee has reached the retirement age in China. Or else, labor disputes may arise.

如果外籍员工已达到退休年龄，而就业许可证尚未过期，用人单位不能因为该外籍员工在中国已达到退休年龄就简单地解雇该外籍员工。否则，可能会引发劳动争议。

Given this, employers are suggested to mitigate this risk through contractual agreements.

有鉴于此，建议雇主通过合同协议来降低这种风险。

After the cancellation of the work permit, the foreign employee cannot claim the restoration of the labor relationship

取消工作许可后，外籍雇员不能要求恢复劳动关系

According to Chinese laws, the employer who illegally terminates the labor contract will be liable for paying compensation or restoring the labor relationship. However, for foreign employees, if the employer has canceled the work permit, it’s quite difficult for the employee to apply for arbitration to restore the labor relationship.

根据中国法律，用人单位违法解除劳动合同的，要承担支付赔偿金或恢复劳动关系的责任。但是，对于外籍员工来说，如果用人单位已经注销了其工作许可，那么员工想要申请仲裁恢复劳动关系就相当困难了。

Key Takeaway

重要启示

Compared with Chinese employees, when recruiting foreign employees, enterprises should consider the following differences:

与中国员工相比，企业在招聘外籍员工时应考虑以下差异：

The process of establishing labor relationships with foreign employees is different;

与外籍员工建立劳动关系的过程有所不同；

The conditions for terminating the foreign employees’ contracts can be different;

终止外籍员工合同的条件可能有所不同；

The contents of the terms present in the labor can be different;

劳动中出现的术语内容可能不同；

The key points to be paid attention to when signing a contract are different.

签订合同时需要注意的要点有所不同。

Properly reviewing the relevant materials of foreigners, handling (and/or changing) their work permits and residence permits, and designing suitable contract terms are all key to the management of foreign-related labor relations and mitigating corresponding risks.

妥善审查外籍人员的相关材料，办理（和/或变更）其工作许可和居留许可，设计合适的合同条款，都是处理涉外劳动关系、降低相应风险的关键。