Six Punitive Measures to Watch Out When Hiring Foreigners Working in China

With the development of international business in China, more and more foreigners come to work in China. While they can take advantage of the enormous market potential, it is strongly advisable to deal with the hiring process involving foreign employers with discretion to avoid possible penalties. Below are some common mistakes that you should avoid at all costs.

  1. Invitation letter with false information

A foreigner applying for a visa is required to provide an invitation letter issued by an organization or individual in China. The organization or individual issuing the invitation letter shall be responsible for the authenticity of the contents of the letter.

Any individual who provides false information in an invitation letter for a foreigner shall be subject to a fine ranging from RMB5,000 to RMB10,000.

Organizations presenting false information in invitation letters shall be subject to a fine ranging from RMB10,000 to RMB50,000. The person-in-charge at the organization shall be punished pursuant to the penalty mentioned in the preceding paragraph.

Meanwhile, any illegal income shall be confiscated, and the offender shall be ordered to bear the traveling expenses of the invited foreigner.

  1. Refusal of presenting immigration documents for inspection

Foreigners who refuse to present visas, identification documents, residence permits for inspection shall be given a warning and may be subject to a fine of not more than RMB2,000.

  1. Failure to update residence permit

Registration items of a foreigner’s residence permit include name, gender and date of birth, purpose, residence period, date and venue of issuance, passport (or other international travel document number) and etc.. If there are any change(s) in any of the above items, the permit holder shall complete registration change formalities with the public security authorities within 10 days from the date of change. Offenders shall be given a warning and may be subject to a fine of not more than RMB2,000.

  1. Failure to complete registration formalities within 24 hours from arrival

Foreigners who are residing or staying in a residence other than a hotel shall complete registration formalities personally or through the accommodation providers with the public security authorities at the place of residence within 24 hours of arrival. Failure to do so shall render the offender liable to a fine of not more than RMB2,000.

  1. Working in China illegally (without work and residence permits)

Foreigners working in China illegally shall be subject to a fine ranging from RMB5,000 to RMB20,000. In more severe violations, the offender may be detained for a period of more than five days but less than 15 days and be subject to a fine ranging from RMB5,000 to RMB20,000.

Persons arranging for foreigners to work illegally in China will also be held responsible. For each illegally employed foreigner, the offender shall be subject to a fine of RMB5,000 but a total fine of not more than RMB50,000. Companies arranging for foreigners to work illegally in China shall be subject to a fine of RMB5,000 for each illegally employed foreigner but the total fine shall not exceed RMB100,000. Any illegal income shall be confiscated.

Persons or organizations who employ foreigners illegally shall be subject to a fine of RMB10,000 for each illegally employed foreigner but the total fine should not more than RMB100,000. Any illegal income shall be confiscated

  1. Engaging in activities inconsistent with the declared purpose of stay or residence

Foreigners engaging in activities which are inconsistent with their purpose of stay or residence may be ordered to leave China within a stipulated period. Foreigners who are being deported shall not be allowed to enter China within 10 years from the date of deportation.

We hope that the above tips can help you avoid unexpected violations of laws and regulations when hiring foreigners. Given that the rules and regulations in China with relation to employing foreigners can be rather complicated, to carry out the hiring process legally, seeking advice from local professionals is recommended.

Should you need any advice, please contact our visa team:

Contact:

Ms. Jacqueline Zhang (jacqueline.zhang@cwhkcpa.com)

Written by China Consultancy Team,  CW CPA

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