Penalty provisions on illegal employment

According to the Law of the People’s Republic of China on the Entry and Exit of Foreigners and its detailed rules, foreigners who are employed in China without permission from Chinese government shall have their employment terminated and may at the same time be fined up to RMB 1,000, and those whose offenses are serious may at the same time be ordered to leave China within a specified time. Companies and individuals who employ foreigners without permission shall terminate employment with the foreigners and may at the same time be fined from RMB 5,000 to RMB 50,000, and be ordered to cover all the expenses of repatriating the foreigners whom they had employed.

According to Rules for the Administration of Employment of Foreigner in China, for foreigners who refuse to have their Employment License inspected by the labor administrative authorities, change their employers and professions at will or extend their term of employment without permission, the labor administrative authorities shall withdraw their Employment Permit and recommend that their residence status be canceled by the public security organs. In case of deportation, the costs and expenses shall be borne by the said foreigners or their employer. For foreigners and employers who forge, alter, falsely use, transfer, buy and sell the Employment Permit and the Employment License, the labor administrative authorities shall take over the Employment Permit and the Employment License in question, confiscate the illegal proceeds and impose a fine between RMB 10,000 and RMB 100,000. In serious cases which constitute a crime, their criminal responsibility of perpetrators shall be looked into by the judicial authorities.