Does the law on labor contracts apply to foreigners in China?
Article 43 of the Law of the People's Republic of China on the Application of Foreign-related Civil Relations provides that the law of the place where the worker works shall apply to the labor contract; if it is difficult to determine the place where the worker works, the law of the place of the employer's main business shall apply. Article 10 of the Interpretation of the Supreme People's Court on the Application of Certain Issues (I) also clarifies that where the protection of workers' rights and interests is involved, the parties cannot exclude the application of the mandatory provisions of Chinese law by agreement. Article 2 of the Labor Contract Law provides that the Law shall apply to the establishment of labor relations between an employer and a worker in China and the conclusion, performance, alteration, termination or termination of a labor contract.
Therefore, according to the existing laws in China, foreigners with employment permits who are employed in China and establish labor relations with domestic employers are workers in China, and the Labor Contract Law should be fully applied.
Do enterprises need to pay social security for foreign employees?
According to the relevant national laws, employers are required to purchase social security for their employees. According to the Interim Measures on Social Insurance for Foreigners Employed in China issued by the Ministry of Human Resources and Social Security, foreigners working legally in China should purchase social insurance: pension insurance, medical insurance, work injury insurance, unemployment insurance and maternity insurance.
How do foreigners pay taxes when working in China?
Foreigners working in China are subject to taxation in the following cases.
1. For those who have residence in China and earn wages and salaries outside China, the additional deduction can be determined according to their average income level, living standard and exchange rate changes.
2. Individuals who have no residence in China but have resided in China for more than one year and less than five years may, with the approval of the competent taxation authority, pay individual income tax only on the part of their income paid by companies, enterprises and other economic organizations or individuals in China; individuals who have resided in China for more than five years shall, from the sixth year onwards, pay individual income tax on all their income derived from outside China.
3. Individuals who are not domiciled in China but have resided in China for not more than 90 days continuously or in aggregate in a tax year are exempted from individual income tax on the part of their income derived from China that is paid by an overseas employer and not borne by the employer's institution or place in China.
What are the legal consequences for an enterprise employing foreigners illegally?
If an employer commits "illegal employment of foreigners", it will face a fine of up to 100,000 RMB and other penalties. If a foreigner is employed illegally, he or she may face legal consequences such as fines, detention or even deportation.
Legal basis: Article 80 of the Exit and Entry Control Law of the People's Republic of China: If a foreigner is illegally employed, a fine of not less than five thousand yuan but not more than twenty thousand yuan shall be imposed; if the circumstances are serious, a detention of not less than five days but not more than fifteen days shall be imposed, and a fine of not less than five thousand yuan but not more than twenty thousand yuan shall be imposed. If an individual introduces a foreigner for illegal employment, the individual shall be fined five thousand dollars for each illegal introduction of a person, the total amount not exceeding fifty thousand dollars; the unit shall be fined five thousand dollars for each illegal introduction of a person, the total amount not exceeding one hundred thousand dollars; if there is illegal income, the illegal income shall be confiscated. If a foreigner is illegally employed, a fine of ten thousand yuan for each illegally employed person, the total amount not exceeding one hundred thousand yuan; if there is any illegal income, the illegal income shall be confiscated. Article 62(3) of the Exit and Entry Administration Law of the People's Republic of China: If a foreigner has illegal residence or illegal employment, he or she may be deported.