Guidance for Chinese Enterprises Recruiting Foreign People
With the deepening of globalization, the demand for cross-border corporate cooperation and the introduction of overseas talents is growing increasingly. Compliant employment of foreign employees has become a key link in the internationalized operation of enterprises. However, China implements a dual-track system of "permission + management" for the employment of foreign nationals, involving laws and regulations of multiple departments such as exit-entry administration, human resources and social security, and public security. Slight negligence may lead to administrative penalties or even criminal liabilities. Based on the latest policies, this article systematically sorts out the core points for enterprises to recruit foreign nationals in compliance with regulations.
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Core Framework of Policies and Regulations
(1)
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Enterprises shall meet three basic requirements:
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Subject Qualification: Legally established with no major illegal records (e.g., not being included in the exit-entry administration "blacklist" or the labor supervision serious violation list in the past three years).
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Job Requirements: In principle, the positions shall be "urgently needed and scarce" technical, management, or economic and trade positions (such as AI engineers, senior technicians, regional directors of multinational enterprises, etc.). Some pilot free trade zones (FTZs) have relaxed the "scarcity" review for positions that conform to the industrial development direction (e.g., the Shanghai FTZ implements a "commitment-based" approval system for foreign professional talents in the fields of integrated circuits and biomedicine).
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Salary Standard: The pre-tax monthly salary of foreign employees shall not be lower than 1.2-1.5 times the average salary of the local industry (the specific ratio is stipulated by the human resources and social security department of each city; for example, Beijing and Shanghai usually require it to be no less than 3 times the average social salary of the previous year).
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(2)
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Foreign individuals shall meet the following requirements simultaneously:
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Basic Conditions: Aged 18 or above, in good health (required to provide a medical examination report issued by a designated medical institution after entry, including infectious disease screening items).
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Professional Competence: Possess the professional skills required for the position (such as academic certificates, professional qualification certificates) and have more than 2 years of relevant work experience (required to provide a work certificate issued by the previous employer and contact information).
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Compliance Records: No criminal record (to be issued by the public security organ of the country of nationality or the country of long-term residence and authenticated by the Chinese embassy or consulate abroad), and no history of illegal employment in China (verifiable through the exit-entry system network).
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Standardized Full Recruitment Process
(1)
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Phase 1: Pre-approval – From Job Declaration to Obtaining Permission
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Job Demand Declaration: Submit the Application Form for Overseas Personnel Employment Job Demand to the human resources and social security department at the enterprise's location, explaining the necessity of the position (e.g., technical gap, demand for management experience), salary level, and the suitability of the foreign employee.
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Application for Foreigner Work Permit Notice: Submit materials online through the "Foreigners Working in China Management Service System" (offline window acceptance is also available simultaneously). Core materials include employment contract, the foreign employee's academic certificate, no-criminal-record certificate, and other supplementary materials such as work experience certificate.
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After approval, the human resources and social security department will issue the Foreigners Work Permit Notice (electronic/paper version), which is usually valid for 6 months.
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(2)
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Phase 2: Visa Processing – Entry with Z Visa and Follow-up Procedures
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Entry Visa: The foreign employee applies for a Z work visa from the Chinese embassy or consulate abroad with the Foreigners Work Permit Notice and other materials (such as passport, photos).
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Post-entry Procedures: Conduct a re-examination of the medical examination within 15 days after entry (some cities require re-testing after entry).
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Post-entry Procedures: Officially apply for the Foreigners Work Permit within 15 days after entry.
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(3)
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Phase 3: Employment Management – From Contract Signing to Residence Compliance
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Sign an employment contract (it is recommended to clarify the salary structure and tax bearing method).
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Apply for a residence permit within 30 days (the validity period is usually consistent with the contract term).
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Establish an exclusive file for the foreign employee (shall include copies of certificates and annual review records).
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In conclusion, compliant employment of foreign employees is an important support for the internationalization of enterprises. It is recommended that enterprises assign full-time HR personnel or entrust professional institutions (such as exit-entry service companies, law firms) to assist in the process, pay regular attention to policy updates from the Ministry of Human Resources and Social Security, the National Immigration Administration and other departments (such as new policies in FTZs and the expansion of social security agreements), to ensure the entire recruitment process is legal and compliant, avoid legal risks, and maximize the value of talents.
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