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New Draft of Administration Regulations on Entry and Exit

  • China
  • Employment law - HR E-Brief

03-06-2013

1. Visa types

New R1 and R2 visas may be introduced for high-level foreign talent or foreign professionals that China urgently needs. R1 visa would be granted to apply for residence permit to stay in China for 180 days or longer and R2 visa to stay in China for no more than 180 days.

The traditional work visa, i.e. the Z visa, should be divided into Z1-visa (for a working period of 90 days or more) and Z2-visa (for a working period of less than 90 days).

2. Illegal employment

The following situations are clearly stipulated as examples of illegal employment:

  • Working without a work or residence permit (unless an exemption applies);
     
  • Working beyond the geographic scope as set out in the work permit;
     
  • Working for an entity other than that identified in the work permit;
     
  • Where no written contract is concluded, but a de facto employment relationship is established between a company and a foreigner who does not hold a work or residence permit;
     
  • Where a foreigner holding a Z2 visa works beyond the scope approved by the relevant competent authority; and
     
  • Where foreign students who study in China work beyond the type of jobs or duration prescribed in the work-study regulations

Whether the foreign individual receives remuneration has no impact on the establishment of illegal employment.

Fines or administrative detention in severe cases may be imposed in case of illegal employment.

3. Internship for foreign students enrolled at a Chinese education institution

Under the Draft Regulations, if a foreigner holding a residence permit allowing him/her to study in China for 180 days or more intends to engage in an internship, he/she must first obtain approval from the education institution where he/she studies. Upon approval, he/she must then apply to the entry-exit authority to marking on his/her residence permit key information, such as location, period of the internship, etc..

Eversheds Comments:

Also with this draft regulations, several issues still remain unclear, in particular the situation of elder experts, overseas’ students coming for internship, participants in companies’ graduate programs, etc.. It still has to be seen if there will be further clarification in the final version or further administrative regulations as indicated in the Entry-Exit-Law. Companies are well advised to closely monitor the legislation development and practical implementation of these changes.

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