Although China has its own differences, like Europe and the USA, it has several rules and restrictions on hiring foreign workers. For employers in China, it is a predetermined process for a foreign employee to complete the necessary procedures to work in China. In the first stage, it is required to investigate whether the conditions for obtaining a work visa are met.

The documents required by the PRC for foreign nationals to obtain a work visa have changed almost every year since 2016. A guideline that includes the necessary conditions for a work visa and starting work will be handy for employers to prevent possible missing and incorrect documents and speed up the recruitment process.

Advice to Employers

Hiring a foreigner in China needs several steps. A few key points:

1.Employers should follow Chinese labor law and up-to-date announcements on foreigner hiring criteria set by the PRC national government.

2. Employers should be aware of local business rules in the province in which the company operates and follow up on changes (sometimes, provincial laws may differ from PRC laws)

3. The rules of local trade unions regarding hiring foreign workers should be followed.

4. Employers should prepare employment contracts with foreign workers together with their employment lawyers.

5. The team should be constantly trained to monitor changes in Chinese labor laws and revise recruitment processes per the new laws.

6. Employers should follow the process of licenses and documents that need to be renewed during the employment process of a foreign worker (in subsequent years).

Basic Requirements for a Chinese Work Visa

Whether foreign personnel can work in China to obtain a work visa should be determined with the list below whether they meet the basic conditions. The application for a Chinese work permit can be made online. Before applying for a Chinese work visa "Z-visa," the local employment office must receive a notification letter proving that you have been approved to work in China.

For those who will apply for a work permit in China:

• There should be no serious health problems.
• Must be over 18 years old.
• Must not have a criminal record.
• Must have a valid passport
• He/she should have the skills and sufficient work experience suitable for the job he/she will work for.

Basic Steps of Recruitment Process of Foreigners

1. The employer must obtain a work permit from the local labor authorities.

2. The employer should then receive a confirmation letter for the work visa invitation from the appropriate foreign affairs office.

3. Foreign employees can apply for a work visa by adding the invitation letter to the application documents.

4. When the foreign employee arrives in China, he must obtain a foreign work permit from the local labor authority.

5. Finally, the foreign employee can obtain a residence permit from the local public security department.

Guideline for Hiring a Foreigner in China

After a foreign employee obtains a work visa and completes the necessary procedures for recruitment, the employer must fulfill its obligations, and the employee's employment contract should be initiated with a written contract.

The main points to consider at this stage are:

1. Employment contract: The employer must sign a fixed-term employment contract with the foreign employee. The employment contract sets out the responsibilities and working conditions of both parties.

2. Probation period: Employers can add a probationary clause to the foreigners' contract, just like Chinese employees. Foreign employees are subject to the relevant provisions of the Labor Contract Law, as are locals. In this way, the employer can part ways with an incompetent or unwilling employee without paying any compensation.

3.Social security: Social security requirements for foreign workers China's social security system consists of insurance pension, medical, maternity, work-related injury, unemployment, and housing fund. Foreign workers in China have been required to participate in China's social insurance program since 2011. Still, there are local variations. This obligation may be waived if they come from a country with a social insurance exemption agreement with China.

4. Individual income taxation (IIT): Under China's IIT law, foreign employees' salary income is subject to personal income tax. The employer is responsible for correctly calculating and deducting the employee's IIT on employment and remitting the amount to the local tax office every month. Foreign employees' IIT calculations differ greatly from those of Chinese employees.

5. Work and residence permits: Foreigners who want to work in China must first obtain a work permit, according to the Regulation on the Employment of Foreigners in China, the Labor Contract Law of the People's Republic of China, and the Labor Law of the People's Republic of China.

Expand into China without setting up a company, by employing or relocating key staff to take a first step in exploring the market. A professional employer organization (PEO) service can act as the official employer of record (EOR) for your staff in China while you expand your business. With the support of our trusted partner network, we can facilitate local hiring and employment without the time and cost of setting up a legal entity in country.

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