Ongoing Pilot Implementation Scheme Of Foreigner’s Work Permit In China

On September 27, 2016, the State Administration of Foreign Experts Affairs (“SAFEA”) issued the Implementation Plan for the Pilot Work Permit System for Foreigners Working in China according to which the pilot relating to integrating the existing Employment Permits for Foreigners and Foreign Expert Work Permits into the new Foreigner’s Work Permit in China shall start from Oct. 1st, 2016 (“Pilot Program”).

In early November, 2016, Shanghai, Tianjin, and Beijing among other cities issued their first foreigner’s work permits. The following is an overview of the pilot program.

1. What are the main tasks of the pilot program?

Main tasks of the pilot program:

1. Optimizing the review and approval process:

• Establishing a nationwide system “management and service system for foreigners working in China”(Website: http://fwp.safea.gov.cn/index_index.action) through which one can make online applications, online bookings and real-time inquiries about progress and the results of application reviews.
• Time limit for the approval process: within twenty (20) working days of the date of acceptance of the application. An extension of another 10 working days may be considered under special circumstances.

1. Unifying the management of credentials:

• The original Work Permit for Foreign Experts Working in China and the Foreigners' Employment Permit are consolidated as the Foreigners' Work Permit Notice. The Foreign Expert Certificate and the Foreigners' Work Permit are consolidated as the Foreigners' Work Permit.
• Only one code will be issued to a single person which will remain the same for a lifetime, concerning the person's work, management, service, credit records, and other information in China subject to dynamic recording and management.

1. Adopting category-based management:

• The pilot program ranks foreigners in three different categories; A, B, and C; which identify the status of the holder: top level talent, professional, and the temporary and seasonal employees in service, or unskilled. A points-based system will be introduced as one of the evaluation criteria for each category. For instance, category A must obtain 85 points, whereas the unskilled category will receive less than 60 points. It should be noticed that a foreigner could be categorized as A, B, or C either by meeting the requirements or by reaching the minimum points of a specific category.
• Ease of application: Category A, highly welcomed; Category B, generally controlled; and Category C, strictly limited.

1. Simplifying and consolidating materials:

• Documentation requirements will be reduced by nearly 50%.
• Applicants placed in Category A are eligible for service through a “green channel”, which offers a commitment approach of no criminal convictions, paperless verification pre-entry, expedited approval and other facilitation measures.

2. What are the legal liabilities for foreigners who did not apply for the work permit? How is the trend of government regulation on employment of foreigners in China?

A foreigner who works in China without a work permit is considered an illegal employee and will bear the legal liabilities. Details are as follows (the fines are all based on RMB):

With the promotion of pilot work, the Chinese government is trying to achieve more timely and comprehensive surveillance on the employment of foreigners in China. Meanwhile, with the current government’s governing concept of “strengthening operational and post-operational oversight over businesses”, China has stepped up efforts in monitoring the illegal employment of foreigners. Therefore, foreigners and their employers should pay close attention to the changes in the foreigner’s work permit scheme in China and go through the formalities in good time.