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Employment Procedures

Signing of Labour Contract

Labour contracts are agreements reached between an employing unit and its employees upon negotiations and take effect after being signed or sealed. There is no need for contract verification and authentication.

There are clear provisions in the Labour Contract Law and the relevant rules and regulations regarding requisite provisions, contract duration, alteration, dissolution and termination, and compensation for contract dissolution. The labour administrative departments of various localities shall provide enterprises with labour handbooks for use as reference when signing labour contracts.

The Implementation Regulations sets clear definitions for the time for the signing of labour contracts between an employing unit and its employees:

(a)  An employing unit must sign a written labour contract with its employee within one month after the commencement of service by the employee. If the employee receives the written notification after one month of service but does not sign the written labour contract, the employing unit shall notify the employee in writing to terminate the employment relationship. No financial compensation shall be paid to the employee, but the employee shall receive wages for the time of service actually rendered.

(b)  Where an employing unit fails to conclude a written labour contract with an employee after the lapse of more than one month but less than one year from the date of employment, it shall pay to the employee his monthly wage in double amount and shall conclude a written labour contract with the employee. If the employee does not sign the written labour contract, the employing unit shall notify the employee in writing to terminate the employment relationship. Financial compensation shall be paid to the employee.

The start time of the period when an employer is required to pay an employee his monthly wages in double amount shall be the day following the full month from the day when the employee is employed, and the end time shall be the day before the day when the written labour contract is concluded.

(c)  Where an employer fails to conclude a written labour contract with an employee after the lapse of one full year, the employer shall pay his monthly wages in double amount, and the period from the date the employee starts his employment and the day before he has worked for a full year shall be deemed to be a period when he has been working for the employer on a labour contract without a fixed term. A written labour contract without a fixed term shall be concluded with the employee immediately.

The start time of the period when an employing unit is required to pay an employee his monthly wages in double amount shall be the day following the full month from the day when the employee is employed, and the end time shall be the day before the lapse of one full year.

Provisions of the Labour Contract Law regarding the probation period:

For a labour contract with a term of more than three months but less than one year, the probation period may not exceed one month; for a labour contract with a term of more than one year but less than three years, the probation period may not exceed two months; and for a fixed-term labour contract of more than three years or a non-fixed-term labour contract, the probation period may not exceed six months.

The same employing unit and the same employee may agree on only one probation period. For a labour contract with a term on project basis or a labour contract with a term of less than three months, no probation period is required. The probation period must fall within the term of the labour contract. If the term of a labour contract covers the probation period only, such probation period is deemed invalid and the term will be the term of the labour contract.

Provisions regarding the dissolution of labour contracts:

Under the Labour Contract Law, there are nine situations where an employing unit may unilaterally dissolve a labour contract.

An employing unit may immediately dissolve a labour contract when an employee:

(1)  is proved to be not meeting the requirements for employment during the probation period;

(2)  seriously violates the employing unit’s rules and regulations;

(3)  commits serious dereliction of duty or practices graft, causing substantial damage to the employing unit;

(4)  has simultaneously established a labour relationship with another employing unit which seriously affects the completion of his tasks with the original employing unit, or refuses to rectify the matter after the same is brought to his attention by the employing unit;

(5)  causes the employing unit to conclude a labour contract  or make an amendment thereto, that is contrary to the employing unit's true intent using such means as deception or coercion, or by taking advantage of the employing unit's unfavourable position, so that the labour contract becomes invalid; and

(6)  has his criminal liability pursued in accordance with the law.

In the event of immediate dissolution of contract due to situations listed above, the Labour Contract Law stipulates that the employing unit is not obligated to make any financial compensation to the employee in question.

An employing unit may dissolve a labour contract with advance notice, if:

(7)  the employee is sick or is injured outside of work, and is unable to resume his/her original position after the prescribed medical treatment period, nor can s/he assume any other position arranged by the employing unit;

(8)  the employee is incompetent for his/her position, and after being trained or being assigned to another position s/he remains incompetent;

(9)  the objective circumstances on which the original labour contract was based have undergone major changes which have rendered the contract inoperative, yet no agreement can be reached between the employing unit and the employee in an attempt to modify the labour contract.

In the above situations, the employing unit may dissolve the labour contract after giving the employee one month's advance notification in writing or paying him an additional one month's wage.

Situations when an employing unit may not dissolve a labour contract:

Under the Labour Contract Law, an employing unit may not unilaterally dissolve a labour contract in the following situations:

(1)  if the employee is engaged in operations exposed to occupational disease hazards and is not given pre-departure occupational health examinations, or is suspected of an occupational disease and in the process of being diagnosed or under medical observation;

(2)  if the employee is confirmed to have totally or partially lost the ability to work due to an occupational disease contracted at work, or due to a work-related injury;

(3)  if the employee has contracted an illness or sustained a non-work-related injury, and is within the prescribed medical treatment period;

(4)  if the employee is a female during her pregnancy, childbirth or breast-feeding period;

(5)  if the employee has worked for the same unit for 15 years, and is within five years of legal retirement age; and

(6)  other situations specified in laws and regulations. Generally, these include: While the employee is serving as the chairperson, vice-chair, or committee member in the labour union; serving as an equal consultation representative; or serving in the military on a voluntary basis.

In labour dispatch, an employing unit may not return a dispatched worker to the labour dispatching unit in accordance with Item 1, Paragraph 1, Article 12 of the Provisional Regulations on Labour Dispatch[1] prior to the expiry of the dispatch period; the dispatched worker may be returned only by extending the dispatched period upon its expiry until the disappearance of the circumstances.

When an employing unit unilaterally dissolves a labour contract, it shall give the trade union advance notification, study its views, and keep it informed in writing of result of the handling of the matter.

Provisions regarding layoffs:

Under the Labour Contract Law, the scope of mass layoff has been expanded on the basis of the Labour Law:

If, under any of the following circumstances, an employing unit has to reduce its workforce by 20 persons or more or by less than 20 persons but the number accounts for more than 10% of its total workforce, the employing unit may only lay off its staff after it has explained the situation to the labour union or to all its employees 30 days in advance, has considered the opinions of the labour union or the employees, and has subsequently submitted the staff layoff plan to the labour administrative department:

(1)  restructuring pursuant to the Enterprise Bankruptcy Law;

(2)  serious difficulties in production and operation;

(3)  changes in production, major technological innovations or adjustments in the operation mode of the enterprise have made it necessary to reduce workforce even after changes have been made in the labour contract;

(4)  the economic circumstances at the time of the signing of the labour contract have undergone major changes which have rendered it impossible to execute the contract.

In retaining staff in the course of carrying out layoffs, priority should be given to the following staff:

(1)  those who have signed a fixed-term labour contract with a relatively long term with the employing unit;

(2)  those who have signed a non-fixed-term labour contract with the employing unit;

(3)  those who are the sole wage earner in their families and have to support elders or minors at home.

If an employing unit that has laid off its staff in accordance with the rules recruits staff again within six months, the laid-off staff should be notified and should be given priority in employment under the same conditions.

An employing unit may return a dispatched worker to the labour dispatching units in any of the following situations:

(1)  If the employing unit is in a situation specified in Item 3 of Article 40[2] or Article 41[3] of the Labour Contract Law;

(2)  The employing unit is declared bankrupt in accordance with law, its business licence is revoked, is ordered to close down or is revoked, or makes the decision to dissolve ahead of schedule or not to continue business operation after its business licence expires;

(3)  The agreed period of labour dispatch has expired.

Provisions on financial allowance and financial compensation:

According to the provisions of the Labour Contract Law and its Implementation Rules, an employing unit shall pay its employees financial compensation in the following situations:

(1)  The employing unit and the employee have reached an agreement to dissolve the labour contract;

(2)  The employing unit has dissolved the labour contract with an advance notice according to regulations;

(3)  The employing unit has dissolved the labour contract to carry out mass layoff and restructuring in accordance with the provisions on enterprise bankruptcy;

(4)  The labour contract is terminated due the expiration of the stated contract period, except when the employing unit extends the labour contract under the same conditions or offers more favourable conditions but the employee disagrees;

(5)  The labour contract is terminated because the employing unit is declared bankrupt in accordance with the law, its business licence is revoked, is ordered to close down or is revoked, or decides to dissolve prematurely;

(6)  The employee terminates the labour contract in accordance with the law; and

(7)  The labour dispatching unit dissolves or terminates the labour contract with the dispatched worker in accordance with regulations.

Financial compensation is paid to an employee based on the number of years he has worked for the employing unit according to the standard of one month's salary for each full year he worked. Any period of more than six months but less than one year shall be counted as one year. Any period of less than six months shall be paid half his monthly salary.

The monthly salary for financial compensation shall be based on the salary due to the employee, including pay at hourly or piece rate and other monetary income such as bonus, allowance and subsidies. If the monthly salary of the worker is three times higher than the average monthly salary in the previous year for employees as announced by the people's government at the municipal level or city-with-district level where the employing unit is located, the rate for financial compensation paid to him shall be three times the average monthly salary of employees and shall be for not more than 12 years of work. An employee whose average salary in the 12 months before the dissolution or termination of labour contract is below the local minimum wage shall be paid compensation at the local minimum wage. If an employee has worked for less than 12 months, the average wage shall be calculated according to the number of months worked.

Special provisions regarding compensation upon labour contract termination with employees who have sustained work-related injury:

When an employee dissolves or terminates his employment relationship with his employing unit due to work-related injury, he shall not only be paid financial compensation in accordance with the Labour Contract Law but shall also be paid a lump sum medical allowance from the work-related injury insurance fund in accordance with the Provisions on Work-Related Injury Insurance and a lump sum disability allowance from his employing unit. The specific standards for the lump sum medical allowance and lump sum disability allowance shall be determined by the provincial, autonomous region and municipal people's governments.

Record Filing of Employment of Workers

The Ministry of Human Resources and Social Security issued its Circular on Establishing a System of Record Filing of Employment of Workers in 2006, requiring employing units to establish a system of record filing of employment of workers.

Information to be included in the record filing of employment of workers by an employing unit shall include: Name, legal representative, economic type and organisation code of the employing unit; number, name, gender and ID number of the workers employed; time of commencement and termination of the labour contracts signed; and number, name of employee and time of labour contracts terminated or dissolved; as well as other information required by the local labour and social security department at the provincial, autonomous region or municipal levels for record filing purposes.

An employing unit that hires new employees or renews its labour contracts with employees shall complete record filing procedures within 30 days of the employment of employees or renewal of labour contracts. An employing unit that terminates or dissolves its labour contract with employees shall complete the record filing procedures within seven days of the termination or dissolution of labour contract.

After changing its name, legal representative, economic type or organisation code, an employing unit shall complete the change of record filing within 30 days. After an employing unit has made its exit, it shall complete cancellation of record filing of employment of employees within seven days.

Where the place of registration of an employing unit is not the same as the actual place of operation, recordation shall be completed at the labour and social security department at the place of actual operation.

Personal Files Management

The personal files management organ for professional and technical personnel hired by foreign-invested enterprises and the Chinese employees of the resident representative office of foreign companies shall be the talent flow service agencies under the organisation department of the party committee or the department of personnel administration of the government at or above the county level. In the case of the trans-regional flow of talents, the management of personal files may be entrusted to the talent flow service agencies at the place of domicile registration or current work place of the staff concerned. The talent flow service agencies are responsible for verification of the staff's identity, salary track record and political records examination (for overseas travel) and other matters relating to personal files management. Other services, such as assessment of technical qualifications and social insurance, are also provided.

Persons from Abroad Working in China

China practises a work permit system for employment of persons from abroad (including Hong Kong, Macau and Taiwan). Any unit or individual that hires people from abroad (including Hong Kong, Macau and Taiwan) to work in China is required to complete the necessary formalities for work permit.

(a)  Departments Responsible for Administration of Employment of Persons from Abroad in China

The labour administrative departments at provincial, autonomous region and municipal levels and their authorised labour administrative departments at prefecture and city levels are responsible for the administration of employment of persons from abroad in China.

(b)  Eligibility Criteria for Persons from Abroad Taking up Employment in China

CategoryHong Kong, Macau and Taiwan ResidentsPersons with Foreign Nationality
Requirements
  1. Aged between 18 and 60 (investors playing a direct part in the operation and professionals badly needed on the mainland may be over 60 years of age);
  2. In good health;
  3. Hold valid travel documents (including Mainland Travel Permit for Taiwan Residents and Mainland Travel Permit for Hong Kong and Macau Residents issued by the competent mainland organs);
  4. Having relevant proof of qualification if the person is to engage in the prescribed occupations (technical posts) as required by the law; and
  5. Other requirements specified by laws and regulations.
  1. At least 18 years of age and in good health;
  2. Possess the professional skills and working experience required for the work of intended employment; 
  3. No criminal record; 
  4. Having a confirmed employing unit; and 
  5. Having a valid passport or other international travel document in lieu of the passport.

 

(c)  Application Procedures for Persons from Abroad Taking up Employment in China

In accordance with the Provisions on Administration of Employment of Foreigners in China and the Provisions on Administration of Employment of Taiwan, Hong Kong and Macau Residents on the Mainland, persons with foreign nationality have to go through the formalities of applying for work permit, work visa, employment certificate and residence permit while Taiwan, Hong Kong and Macau residents have to apply for employment certificate. The documents required and the time needed to complete the formalities vary from place to place. The following are the requirements in Guangdong:

Procedures for processing the Work Permit and the documents required: 

Category
Persons with Foreign Nationality
DescriptionEmployment Permit for Foreigners
Procedures
  1. Foreign-invested enterprises that hire foreigners may proceed directly to the human resources and social security department of the province, autonomous region or municipality where they are located or the department at the district or city level authorised by such department on the strength of contracts, articles of association, approval certificates, business licence and other relevant documents.
  2. An employing unit approved to employ foreigners shall proceed to the authorised unit (unit authorised by the State Council on behalf of the Foreign Ministry to issue letter or telegram notifications to foreign countries) to process the visa notification letter or telegram on the strength of the work permit (valid for six months) issued by the human resources and social security department. A foreigner whose employment in China has been approved shall proceed to a Chinese embassy, consulate or consular office abroad to apply for a work visa on the strength of the work permit issued by the human resources and social security department, the notification letter or telegram and the valid passport of his own country. 
Documents Required
  1. Application Form for Employment Approval (must state the reasons and necessity for hiring foreigners);
  2. Letter of Intention for Employment (must state the position offered, the time for taking up employment, or provide photocopies of the letter of appointment or letter of assignment that can prove the position offered and the time for taking up employment;
  3. Photocopies of the Business Licence (copy) and Organisation Code Certificate of the employing unit;
  4. Photocopy of the valid passport showing the personal information page and the latest visa of the foreigner to be employed;
  5. Proof of the curriculum vitae, academic qualifications and skills for the required job of the foreigner to be employed;
  6. Application Form for Employment of Foreigners approved by the Ministry of Public Security; and
  7. Other documents required by laws and regulations.
Points to
Note

  1. The original documents of the above-mentioned documents must be submitted for examination; all certificates, forms and photocopies must bear the seal of the employing unit; and
  2. Time limit: 15 working days from the day the application is accepted.

 

Procedures for processing the Employment Certificate and the documents required:

CategoryHong Kong, Macau and Taiwan ResidentsPersons with Foreign Nationality
Description
First-time application for Employment Certificate for
Hong Kong, Macau and Taiwan Residents
First-time application for Employment Certificate for Foreigners
Procedures
  1. The employing unit shall submit the application to the human resources and social security department. After approval has been granted, it shall proceed to the city-level human resources and social security department where it is located to obtain the Employment Certificate for Hong Kong, Macau and Taiwan Residents with the Receipt for Accepted Application; and
  2. With the Employment Certificate for Hong Kong, Macau and Taiwan Residents, the employing unit shall proceed to the human resources and social security department that issues this Certificate to complete the record filing procedures for Hong Kong, Macau and Taiwan residents.
  1. Within 15 days from the date that a foreign employee has entered China, the employing unit shall proceed to the human resources and social security department with the Work Permit and other required documents to obtain an Employment Certificate and complete the Registration Form for Employment of Foreigners; and 
  2. Foreigners employed shall proceed to the public security authority with their Employment Certificate to apply for Employment Residence Permit within 30 days of their entry.
Documents Required
  1. A completed Application Form for Employment of Hong Kong, Macau and Taiwan Residents on the Mainland and Registration Form for Record Filing;
  2. Business Licence of the employing unit (copy) or photocopies of the Registration Certificate of the representative office and the organisation code certificate of foreign companies;
  3. Photocopy of the valid personal travel document of the person employed or dispatched (specifically referring to the Mainland Travel Permit for Taiwan Residents and Mainland Travel Permit for Hong Kong and Macau Residents issued by the public security organ or the Travel Permit of the People's Republic of China issued by the Ministry of Foreign Affairs to persons of Hong Kong, Macau and Taiwan origin abroad of the person appointed or dispatched;
  4. Bill of health of the person employed or dispatched (specifically referring to the Health Certificate issued by the mainland health inspection and quarantine department or the Health Certificate issued by approved medical institutions in Taiwan, Hong Kong or Macau);
  5. Proof of employment (photocopy of labour contract if labour contract was signed, photocopy of letter of assignment if assigned by the company, and photocopy of staff pass for resident representative office of the company of foreign country or region);
  6. Photocopy of the relevant certificates of professional qualifications for those employed for positions specified by the state (technical jobs) and photocopy of the curriculum vitae or proof of academic qualifications for Taiwan, Hong Kong or Macau residents employed;
  7. Two recent colour passport photos;
  8. Registration Form of Temporary Residence for Visitors; and
  9. Other documents required by laws and regulations.
  1. Application Form for Employment Approval (must state the reasons and necessity for employing foreigners);
  2. Proof of employment (photocopy of labour contract for those who have signed labour contracts, photocopy of the letter of assignment if assigned by the company, and photocopy of the staff pass for resident representative office of the company of  foreign country or region);
  3. Business Licence of the employing unit (copy) or photocopy of the Registration Certificate and Organisation Code Certificate of the resident representative office of the company of foreign country or region; 
  4. Photocopy of the valid passport showing the personal information page and the latest visa of the foreigner to be employed;
  5. Application Form for Employment of Foreigners approved by the Division of Aliens Administration of the Public Security Bureau;
  6. A completed Registration Form for Employment of Foreigners;
  7. Proof of curriculum vitae, academic qualifications or vocational qualifications of the foreigner to be employed; 
  8. Original medical report of the foreigner to be employed;
  9. Two recent colour passport photos;
  10. Registration Form of Temporary Residence for Visitor; and 
  11. Other documents required by laws and regulations.
Points to
Note
  1. Necessary forms may be collected from the human resources and social security departments at various levels or downloaded from the official website of these departments;
  2. The originals of the above-mentioned documents must be presented for verification; proofs, forms and photocopies must bear the official seal of the employing unit;
  3. Time limit: Five working days after acceptance of application;
  4. Charging standards: An employing unit that employs foreigners shall pay job deployment fee. Standards vary from place to place. Guangdong charges Rmb9 per person per month and the fee is paid in a lump sum for the duration of the Employment Visa; and
  5. The Employment Certificate is only valid in the area specified by the issuing authority.
 

 

Employing units may not conclude labour contracts with a term of more than five years with foreign employees and the Employment Certificate will expire at the end of the contract. If the Employment Certificate needs to be extended, application must be submitted within one month of its expiry.

Procedures for processing extension of Employment Certificate and documents required: 

Category
Hong Kong, Macau and Taiwan ResidentsPersons with Foreign Nationality
DescriptionExtension of Employment Certificate for Taiwan,
Hong Kong and Macau Residents
Extension of Employment Certificate
for Foreigners
Documents Required

The extension formalities are generally the same for foreigners and Hong Kong, Macau and Taiwan residents and the following documents are required:

  1. The original Employment Certificate for Foreigners/Employment Certificate for Taiwan, Hong Kong and Macau Residents;
  2. Completed Application Form for Extension of Employment Certificate bearing the signature of the applicant (one form for each applicant);
  3. Business Licence of the employing unit (copy) or one photocopy each of the Registration Certificate and Organisation Code Certificate of the resident representative office of the company of foreign country or region; 
  4. Photocopy of the valid passport or Entry-Exit Permit or Home Visit Card of the employee; and
  5. Proof of employment (photocopy of the labour contract for those who have signed labour contracts, photocopy of the Letter of Assignment if assigned by the company, and photocopy of the staff pass for resident representative office of the company of foreign country or region.
Points to
Note

  1. Application for extension must be submitted one month before the original certificate expires;
  2. One recent colour passport photo, front view with no hat, must be submitted if the extension pages of the Employment Certificate are used up. Those who apply for extension after the deadline must undergo medical check-up once more;
  3. Those approved to extend their employment in China shall complete formalities for extension of residence permit at the local public security organ within 10 days; and
  4. Time limit: Three working days from the date of acceptance.
  5. The originals of the above-mentioned documents must be presented for verification; proofs, forms and photocopies must bear the official seal of the employing unit.

 

An employee whose Employment Certificate is lost or damaged must apply for replacement promptly at the service counter of the city or district (county-level city) labour and employment service administrative bureau.

Procedures for obtaining replacement Employment Certificate and documents required: 

Category
Hong Kong, Macau and Taiwan ResidentsPersons with Foreign Nationality
Description

Replacement Employment Certificate for Taiwan,
Hong Kong and Macau Residents

Replacement Employment Certificate
for Foreigners
Documents Required
  1. Completed Application Form for Replacement Employment Certificate for Foreigners/Taiwan, Hong Kong and Macau Residents;
  2. Valid passport or Entry-Exit Permit or Home Visit Card of the employee (photocopy);
  3. Business Licence (copy) of the employing unit or one photocopy each of the Registration Certificate and Organisation Code Certificate of the resident representative office of the company of foreign country or region; and
  4. One recent colour passport photo.
Points to
Note
  1. Time limit: Three working days from the date of acceptance of application; and
  2. The originals of the above-mentioned documents must be presented for verification; proofs, forms and photocopies must bear the official seal of the employing unit.

 

An employee who leaves the area specified by the issuing organ or changes his employing unit and engages in a different profession in the same area is required to go through the formalities of applying for Employment Permit once again.
An employee intending to change his employing unit and other information within the area specified by the issuing organ but still engages in the same profession needs to obtain the approval of the original issuing organ and apply for change of particulars at the service counter of the labour and employment service administrative bureau at the city level or district (county-level city) where he is based.

Procedures for filing change of particulars and documents required:

Category
Hong Kong, Macau and Taiwan ResidentsPersons with Foreign Nationality
DescriptionChange of Particulars in Employment Certificate for Taiwan, Hong Kong and Macau ResidentsChange of Particulars in Employment Certificate for Foreigners
Documents Required
  1. The original Employment Certificate for Foreigners/Employment Certificate for Taiwan, Hong Kong and Macau residents;
  2. Completed Application Form for Change of Particulars in Employment Certificate for Foreigners/Taiwan, Hong Kong and Macau Residents (original bearing the seal of the employing unit); and
  3. Proofs of change of particulars (those applying to change personal particulars shall submit a photocopy of the personal information page of the new travel document; those applying to change the name of his company shall submit the Business Licence and proof from the administration of industry and commerce approving the change; those applying to change the place of work shall submit photocopies of proof of severance of employment relationship with the original employing unit and the Employment Intention Letter of the new employing unit; those applying to change their residence address shall submit the new Registration Form for Temporary Residence of Visitors.
Points to
Note

  1. Time limit: Three working days from the date of acceptance of application;
  2. After the change of working area and employing unit has been approved, the applicant should proceed to the local public security bureau to complete change of particulars in his Residence Permit; and
  3. One recent colour passport photo must be submitted if the change of particulars page of the Employment Certificate for Foreigners/Taiwan, Hong Kong and Macau Residents is used up.  

 

An employee who changes his employing unit and the original and new employing units belong to the same group or have subordinate relations shall complete transfer formalities in their Employment Certificate.

Procedures for completing transfer of Employment Certificates and documents required:

CategoryHong Kong, Macau and Taiwan ResidentsPersons with Foreign Nationality
DescriptionTransfer of Employment Certificate for Taiwan,
Hong Kong and Macau Residents
Transfer of Employment Certificate for Persons with Foreign Nationality
Documents Required

Transfer out:

  1. Original copy of the Employment Certificate for Taiwan, Hong Kong and Macau Residents;
  2. Completed Application Form for Cancellation and Transfer of Employment Certificate for Foreigners/Taiwan, Hong Kong and Macau Residents (must indicate place of transfer and name of new employing unit in the “Reasons for Cancellation/Transfer” section);
  3. Proof of original employing unit’s severance of employment relationship; and
  4. Proof of new employing unit's employment intention.

Transfer in:

  1. Proof of transfer issued by the original issuing organ for Employment Certificate for Taiwan, Hong Kong and Macau Residents; and
  2. Documents required to apply for new Employment Certificate for Taiwan, Hong Kong and Macau Residents.

Transfer out:

  1. Original Employment Certificate for Foreigners;
  2. Completed Application Form for Cancellation/Transfer of Employment for Foreigners/Taiwan, Hong Kong and Macau Residents; and
  3. Proof of relationship between the original and new employing units (documents proving that the original and new employing units belong to the same group or have subordinate relations).

Transfer in:

  1. Proof of transfer issued by the original issuing organ for the Employment Certificate for Foreigners;
  2. Proof of relationship between the original and new employing units (documents proving that the original and new employing units belong to the same group or have subordinate relations); and
  3. Documents required to apply for new Employment Certificate for Foreigners.
Points to
Note 

  1. Time limit: Prompt application at the time of transfer out; and five working days from the date application for transfer in is accepted; and
  2. The originals of the above-mentioned documents must be presented for verification; proofs, forms and photocopies must bear the official seal of the employing unit.

 

After the termination of labour contract between an employee and his employing unit, the employing unit shall promptly report to the labour and public security departments to complete the formalities for the cancellation of the Employment Certificate and return the Employment Certificate and Residence Permit of that employee and proceed to the public security department to go through exit formalities.

Procedures for cancelling Employment Certificate and documents required:

CategoryHong Kong, Macau and Taiwan ResidentsPersons with Foreign Nationality
Description

Cancellation of Employment Certificate for Taiwan, Hong Kong and Macau Residents

Cancellation of Employment Certificate for Foreigners
Documents Required
  1. Original of the Employment Certificate for Foreigners/Employment Certificate for Taiwan, Hong Kong and Macau Residents;
  2. Completed Application Form for Cancellation/Transfer of Employment Certificate for Foreigners/Taiwan, Hong Kong and Macau Residents; and
  3. Proof of termination of labour relationship with the original employing unit.
Points to
Note

Time limit: Prompt action.

 

Labour administrative departments shall conduct annual checks of the Employment Certificate. An employing unit that employs foreigners for one full year is required to go to the Employment Certificate issuing organ of the labour administrative department to go through formalities for the annual check of Employment Certificate 30 days before the certificate is due to expire. The Employment Certificate shall automatically be invalidated if annual check is not carried out before the prescribed time limit.

Procedures for annual check of Employment Certificate and documents required:

Category Hong Kong, Macau and Taiwan Residents
Persons with Foreign Nationality
DescriptionAnnual check of Employment Certificate for Taiwan,
Hong Kong and Macau Residents
Annual check of Employment Certificate
for Foreigners
Documents Required
  1. Registration Form for Annual Examination of Employment Certificate for Foreigners;
  2. Photocopy of valid passport or Entry-Exit Permit/Home Visit Card and Residence Permit of the Employment Certificate holder; and
  3. Business Licence (copy) of the employing unit or one photocopy each of the Registration Certificate and Organisation Code Certificate of the resident representative office of the company of foreign country or region.
Points to
Note

  1. Time limit: Five working days after acceptance of application; and
  2. The originals of the above-mentioned documents must be presented for verification; proofs, forms and photocopies must bear the official seal of the employing unit.

 

 


[1]  Item 1, Paragraph 1, Article 12 of the Provisional Regulations states: (1) An employing unit may return the dispatched worker to the labour dispatching unit under circumstances specified in Item 3 of Article 40 and Article 41 of the Labour Contract Law.

[2]  Item 3 of Article 40 stipulates: A material change in the objective circumstances relied upon at the time of conclusion of the labour contract renders it impossible for the parties to perform and, after consultation, the employing unit and the employee are unable to reach an agreement on amending the labour contract.

[3]  The provisions of Article 41 are the provisions regarding the statutory ground of mass layoffs in the Labour Contract Law.

Content provided by Picture: HKTDC Research
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