What are the labour laws applicable to the employment of foreign workers in China?

The labour laws applicable to the employment of foreign workers in China are set out in the ‘China Business Ventures Law’. This law governs the terms and conditions under which foreign companies can set up and operate businesses, as well as their employment of foreign workers. Under this law, foreign companies are required to obtain a “work permit” for each foreign employee they hire in China. Employers must also pay employers insurance for employees, and pay social security contributions for staff. Furthermore, foreign employees have the same rights and responsibilities as Chinese citizens, in the areas of wages, working hours, and working conditions. In addition, the law sets out rules for hiring and terminating employment contracts, the extension and renewal of work permits, and the calculation of compensation when a contract is terminated. For example, employers must provide compensation in the form of a payment or additional salary to any foreign employees who have an employment contract for more than one year. It is important to note that the laws governing the employment of foreign workers are subject to change by the Chinese government, and employers must remain up to date with applicable rules and regulations. It is also important to ensure that all required documents and procedures are completed correctly, to protect the interests of both the employer and the employee.

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