Employers beware: noose is tightening on unwanted or illegal foreign workers

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The National People’s Congress has passed the Law of the People’s Republic of China on Entry and Exit Control, which takes effect on 1 July 2013. The new law not only governs the exit and entry of citizens and foreigners, but also contains provisions concerning foreigners’ residence and employment in China. The new law supersedes the existing entry and exit control laws, which will be repealed.

 The new law reviews the work and residence status of foreigners, with tighter controls.

The new law reviews the work and residence status of foreigners, with tighter controls.

Key employment provisions

The new law expressly addresses the employment of foreigners in China. Specifically, the law requires foreign nationals to apply for work authorisation and prohibits employers from engaging foreign nationals who lack work authorisation. A foreign national is deemed to be illegally employed if he or she:

(1) works without having secured a work permit or related residence permit;

(2) engages in activities beyond the scope permitted by the work permit; or

(3) is a foreign student engaging in activities beyond the scope permitted by the work-study position.

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Business Law Digest is compiled with the assistance of Baker & McKenzie. Readers should not act on this information without seeking professional legal advice. You can contact Baker & McKenzie by e-mail at: Zhang Danian (Shanghai) danian.zhang@bakermckenzie.com

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