I、What are the related laws and regulations by which the foreigners shall be bound if they are employed in Shanghai?

The foreigners who are employed in Shanghai shall be governed by the Employment Law of the People’s Republic of China, the Employment Contract Law of the People’s Republic of China, the Rules for the Administration of Employment of Foreigners in China, the Several Opinions on Implementing the “Rules for the Administration of Employment of Foreigners in China”, the Contract Law of the People’s Republic of China, etc.

II、How shall the employment formalities be handled?

Where a foreigner is employed in Shanghai (including those whose remunerations are paid offshore but who are seconded to work in Shanghai for a period more than 3 months), the Employment License for Foreigners of the People’s Republic of China (hereinafter referred to as the “Employment License”) and the Employment Permit for Foreigners (hereinafter referred to as the “Employment Permit”. The detailed procedure is as follows:

1. If employment is going to occur between an employer in Shanghai and a foreigner, the employer shall apply to the Shanghai Municipal Human Resources and Social Security Bureau Reception Center of Employment Affairs for Foreigners for the Employment License for the foreigner before his/her entry into China.
2. Upon the approval of the aforesaid application, the Shanghai Municipal Human Resources and Social Security Bureau will issue the certificate of the Employment License to the employer, with which the employer shall apply to the authorized organization (Shanghai Municipal Foreign Trade and Economy Committee or Foreign Affairs Office of Pudong New Area) for the formalities of employment visa (Z Visa Notification). The Z Visa Notification and the Employment License shall be forwarded to the foreigner through the aforesaid authorized organization;
3. The foreigner who has been approved to work in Shanghai shall apply to the Chinese embassies, consulates or offices for the employment visa (Z Visa) by presenting his/her valid passport, Z Visa Notification, and the Employment License;
4. After the foreigner who obtains the employment visa enters China with Z Visa, he/she shall go through a health examination at Exit-Entry Health and Quarantine Bureau of Shanghai Municipality;
5. After the foreigner passes the health examination, his/her employer shall apply for the Employment Permit in Shanghai Municipal Human Resources and Social Security Bureau Reception Center of Employment Affairs for Foreigners 15 days after his/her entry into China.
6. The foreigner who has received the Employment Permit shall go through the formalities for the residence permit by presenting the Employment Permit at Exit-Entry Administration Bureau of Shanghai Municipality 30 days after his/her entry into China.

III、In what aspects shall the foreigners be protected by Chinese law if they are employed in Shanghai?

The foreigners who are employed in Shanghai shall be protected in the aspects of the minimum wage, working hours, rest and leaves, labor safety and health, and social insurances by the employment laws and regulations of China; for the other aspects, the foreigners shall stipulate with the employers. Nevertheless, the foreigners may not participate in the social insurance program in Shanghai Municipality as yet.

IV、What are the remedies for the foreigners in case that the disputes occur between them and their employers in Shanghai?

In China, in case that there are disputes between the employees and their employers, a prior proceeding of labor arbitration is a must. Only if either of the parties refuses to accept the arbitral award, may it bring the case to the people’s court. Where there are disputes between a foreigner and his/her employer in Shanghai, he/she may appeal to the Labor Dispute Arbitration Commission of Shanghai Municipality for the labor arbitration; if he/she refuses to accept the arbitral award, he/she may bring the case to the people’s court. There will be the first instance and the second instance for the trial of a case by the people’s court: if neither of the parties institute an appeal after the trial of the first instance, the case is concluded; if either party refuses to accept the judgment of the first instance, it may institute an appeal, thus proceeding to the second instance. The judgment or ruling of the second instance shall be the final judgment or ruling.