Chapter III

Application and Approval

Article 11 The employer when intending to employ a foreigner, stall fill out the Application Form for the Employment for Foreigners (hereinafter referred to as the "Application Form") and submit it to its competent trade authorities at the same level as the labor administrative authorities together with the following documentation:

(1) the curriculum vitae of the foreigner to be employed;

(2) the letter of intention for employment;

(3) the report of reasons for employment;

(4) the credentials of the foreigner required for the performance of the job;

(5) the health certificate of the foreigner to be employed;

(6) other documents required by regulations.

The competent trade authorities shall examine and approve the application in accordance with Articles 6 and 7 of these Rules and relevant laws and decrees.

Article 12 After the approval by the competent trade authorities, the employer shall take the Application Form to the labor administrative authorities of the province, autonomous region or municipality directly under the Central Government or the labor administrative authorities at the prefecture and city level where the said employer is located for examination and clearance. The labor administration authorities described above shall designate a special body (hereinafter referred to as the "Certificate Office") to take up the responsibility of issuing the Employment License. The Certificate Office should take into consideration of the opinions of the competent trade authorities and the demand and supply of labor market, and issue the Employment License to the employer after examination and clearance.

Article 13 Employers at the central level or those without the competent trade authorities may submit their application directly to the Certificate Office of the labor administrative authorities for the Employment Permit.

The examination and approval by the competent trade authorities is not required for foreign-funded enterprises to employ foreigners, and such enterprise may submit their applications directly to the Certificate Office of the labor administrative authorities for the Employment License, bringing with them the contract, articles of association, certificate of approval, business license and the documentation referred to in Article 11 of these Rules.

Article 14 Employers with permission to employ foreigners shall not send the Employment License nor the letter of visa notification directly to the foreigners to be employed, and they must be sent by the authorized unit.

Article 15 Foreigner with permission to work in China should apply for Employment Visas at the Chinese embassies, consulates and visa offices, bringing with them the Employment License issued by the Ministry of Labor, the letter or telex of visa notification sent by the authorized unit and the valid passport or Travel Document.

Personnel referred to in Article 9 (1) of these Rules should apply for the Employment Visas by presenting their letter or telex of visa notification by authorized unit; personnel referred to in Article 9 (2) should apply for the Employment Visas by presenting their letter or telex of visa notification issued by the China National Offshore Oil Corporation; personnel referred to in Article 9 (3) should apply for the Employment Visas by presenting their letter or telex of visa notification issued by the foreign affairs office under the people's government of provinces, autonomous regions or municipalities directly under the Central Government and the relevant documents of approval of the Ministry of Culture (addressed to the Chinese embassies, consulates or visa offices).

Personnel referred to in Article 10 (1) of these Rules should apply for the Employment Visas by presenting their letter or telex of visa notification by authorized unit and the documentation on projects of cooperation and exchange; personnel refereed to in Article 10 (2) should apply for the Employment Visas by presenting their letter or telex of visa notification by the authorized unit and the registration certification issued by the administrative authorities of industry and commerce.

Article 16 The employer should, within fifteen days after the entry of the employed foreigner, take to the original Certificate Office the Employment License, the labor contract with the said foreigner and his passport or Travel Document to receive his Employment Permit while filling out the Foreigner Employment Registration Form.

The Employment Permit shall be effective only within the area specified by the Certificate Office.

Article 17 Foreigners who received their Employment Permit should, within thirty days after their entry, apply for the residence certificate with the public security organs bringing with them their Employment Permit. The term of validity of the residence certificate may be determined in accordance with the term of validity of the Employment Permit.

Chapter IV

Labor administration

Article 18 The employer and its foreign employee should, in accordance with law, conclude a labor contract, the term of which shall not exceed five years. Such contract may be renewed upon expiration after the completion of clearance process in accordance with Article 19 of these Rules.

Article 19 The Employment Permit of the employed foreigner shall cease to be effective upon the expiration of the term of the labor contract between the foreigner and his employer. If renewal is required, the employer should, within thirty days priors to the expiration of the contract, submit an application to the labor administrative authorities for the extension of term of employment, and after approval is obtained, proceed to go through formalities for the extension of the Employment Permit.

Article 20 The foreign employee should, within ten days after obtaining the approval for extension of his term of employment in China or the change of his employment location or his employer, go through formalities for the extension or change of his residence certificate at the local public security organs.

Article 21 After the termination of the labor contract between the foreign employee and his employer, the employer should promptly report it to the labor and public security authorities, return the Employment Permit and the residence certificate of the said foreigner, and go through formalities for his exit from China.

Article 22 The wage paid to the foreign employee by the employer shall not be lower than the minimum wage in the locality.

Article 23 The working hours, rest and vacation, work safety and hygiene as well as the social security of the foreign employees in China shall follow the relevant provisions of the state.

Article 24 The employer of the foreign employee in China shall be the same as specified in his Employment License.

When the foreigner switches employers within the area designated by the Certificate Office but stays in a job of the same nature, the change must be approved by the original Certificate Office and recorded in his Employment Permit.

If the foreigner is to be employed outside the area designated by the Certificate Office or switch employer within original designated area while taking up jobs of a different nature, he must go through formalities for a new Employment License.

Article 25 For foreigner whose residence status is revoked by public security organs due to his violation of Chinese law, his labor contract should be terminated by his employer and his Employment Permit be withdrawn by the labor administrative authorities.

Article 26 Should the labor disputes arise between the employer and its foreign employee, they should be handle in accordance with the Labour Law of the People's Republic of China and the Regulations of the People's Republic of China on Settlement of Labour Disputes in Enterprises.

Article 27 The labor administrative authorities shall conduct an annual inspection of the Employment Permit. Within thirty days prior to the end of every year of employment of the foreigner, the employer should go through formalities of the annual inspection at the Certificate Office of the labor administrative authorities. The Employment Permit shall automatically cease to be effective when the deadline is passed.

In case of loss or damage of the Employment Permit during the term of his employment in China, the foreigner should promptly report it to the original Certificate Office and go through formalities for the issuance of the Employment Permit.