FIE Post-establishment Procedures – Labor Management

A foreign-invested enterprise located in Guangdong province shall abide by relevant state and provincial labor management regulations in recruitment.

1. Recruitment of local staff

For recruitment of staff, the enterprise shall carry out relevant formalities with local labor and social security authorities against the business license issued by the administration of industrial and commercial registration.

For the recruitment of staff locally or within other places of Guangdong Province, the enterprises are permitted to decide the place, number and conditions; For the recruitment of staff from other provinces, the enterprises shall apply to the labor and social security authorities of county and above level for ratification. It is prohibited to recruit persons under 16 years old.

A recruit shall, apart from effective identification document, holds other relevant documents according to registration statues:

I. An urban resident who lives within the city or county where the enterprise is located shall hold an unemployment certificate issued by labor management authorities. A rural resident shall hold an employment registration certificate issued by the labor management authorities above village or county level.

II. A recruit whose permanent residence is outside the locality or outside of Guangdong Province shall hold an effective Employment Registration Card for Migrant Labor and birth control document issued by the family planning authorities.

Once a recruit employed, within 30 days the enterprise shall go to the local labor and social security authorities for employment formalities against the above documents, receive relevant employment certificates for the employee and pay charges and fees according to State or Provincial Stipulations.

The enterprise shall conduct the process of employment in accordance with Labor Law and other related regulations, sign employment contract with the employee, and carry out verification formalities with the labor authorities, as well as social labor insurance formalities with social insurance authority.

The enterprise shall apply to local labor and social security authorities for a certificate before it puts up an employment advertisement (including on Internet) within Guangdong Province, and apply to the Provincial Labor and Social Security Department if such an advertisement is outside of Guangdong. Recruitment may be organized by the enterprise according to regulations or through an authorized job brokerage affiliated with the local labor authorities.

2. Employment of Expatriates (including those from Taiwan, Hong Kong and Macao)

For employment of expatriates (including those from Taiwan, Hong Kong and Macao), the foreign-invested enterprise shall file an employment application with local labor authorities in accordance with the Regulations for Employment of Foreign Nationals in China, and the Regulations for Employment of Taiwan, Hong Kong and Macao Residents on the Mainland. For employment of a foreign national, the enterprise shall apply for an employment permit on his/her behalf. Upon approval and issuing of an Employment Permit, of the P. R. China for Foreign Nationals, the authorized organization shall issue a verification notice and a permit. The foreign national then shall apply to a Chinese Embassy or Consulate General abroad for the work visa against the permit, verification notice and an effective passport. The enterprise shall apply to the local labor authorities to get an employment certificate for the foreign national against the permit, the employment contract signed with the foreign national and an effective passport within 15 days after the foreign national enters China.

A foreign national who has already an employment certificate shall apply to the public security authorities for a residence permit against such a certificate. In case of employment of Taiwan, Hong Kong and Macao residents, the enterprise shall report to local labor authorities and receive an employment certificate upon their approval. A Taiwan, Hong Kong and Macao resident who have already been approved to work in Chinese mainland shall apply local public security bureau for a temporary residence against the employment certificate.

3. Termination of a Contract

When a contract expires or conditions arise for the parties to terminate the labor contract, the labor contract shall be terminated. A labor contract may be dismissed based on an agreement between the parties. When situations arise as described in article 26 of the Labor Law, the employer may dismiss the employment contract provided that it notifies the employee in writing 30 days in advance. An employee who wishes to dismiss the contract shall notify the employer in writing 30 days in advance. When situations arise as described in article 32 of the Labor Law, the employee may notify the employer of contract dismissal at any time.