Generally speaking, expats need to get an Work Permit to work in China, unless they hold a Foreign Expert Certificate. Enterprises must apply for an Employment License after submitting the necessary documents such as resumes, qualification certificates and health certificates. This is true even if the expatriate is the owner of the enterprise, such as a WOFE.
Once an Employment License is issued, expatriates should apply for a Z visa (i.e. vocational visa in China) and then an Work Permit. Afterwards, foreigners should apply to the local public security authority for Residence Permits. With an Work Permit and Residence Permit issued, the expats can finally stay and work in China legitimately.
However, the Chief representative or representative of an overseas entity can apply for Work Permits directly, without first applying for Work Permit, just submitting their Z visa and the RO registration certificate.
According to related PRC regulations, the Employer shall complete an annual inspection of the Work Permit within 30 days before the expiration of the employment contract. Otherwise, the Work Permit will automatically expire.
Additionally, if the expat changes their employer or extends their employment term without permission, the labor administrative authority can withdraw their Work Permit and the public security authority could deprive their residence qualification too.
Another thing to know about the Work Permit is, it’s the prerequisite for an expat to work in China legitimately. It is illegal for foreigners to work without Work Permits, so they are not protected by law.
What does that mean?
Let’s put it this way-most expats know employment contracts are very important to protect themselves. However, few expats know that Work Permits are equally important. Without an Work Permit, the employment contract is meaningless. The employer could terminate the employment contract as they wish without paying any severance pay. The expats can only get remuneration for his/her job as specified in the contract, but they can’t get any compensation like their Chinese colleagues. This includes injuries during work that can’t be claimed for industrial injury compensation, or compensation if the employment contract expires, generally one month’s salary for each year when he/she works for the employer.
Useful links:
The Ministry of Public Security of the People’s Republic of China