Working in China: Work Permits, Work-Type Residence Permits, and Employment Contracts

Foreign nationals employed in China must obtain both a work permit and a work-type residence permit in accordance with the law, and their actual employer and position must match the approved scope. An employment contract cannot replace administrative authorization, and a work permit cannot replace an employment contract. Before employment begins, both parties should align the permit process, the contract's effective date, and the actual start date.

Employment contracts still impose clear obligations

The Provisions on the Administration of Employment of Foreigners in China require an employer and its foreign employee to enter into an employment contract in accordance with the law. The contract term may not exceed five years, and wages may not be lower than the local minimum wage. The position, work location, remuneration, contract termination, permit cancellation, and related arrangements should be stated clearly in writing rather than relying on verbal promises.

Changing employers or leaving early requires coordinated formalities

The end of a contract with the original employer does not mean you can start work immediately for a new employer. First confirm whether the work permit must be amended or a new application made, and how the residence permit should be handled. Illegal employment may result in a fine of RMB 5,000 to RMB 20,000. In serious cases, detention of 5 to 15 days may be imposed together with the applicable fine.

Employment and contract rules appear in the Ministry of Human Resources and Social Security's Provisions on the Administration of Employment of Foreigners in China, and legal liability is set out in the Exit and Entry Administration Law. Labor disputes and individual cases must also be considered in light of the employment contract and current labor security laws.