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Print articleChina: Mainland China Employment Permit for Hong Kong Residents
December, 2006 -
An employment permit system has recently been implemented for Taiwan, Hong Kong and Macau personnel rendering services in Mainland China.
The Administrative Regulations on the Employment of Taiwan, Hong Kong and Macau Residents in Mainland China (“Employment Regulations”) were issued by the PRC Ministry of Labour and Social Security on 14 June 2005 and took effect on 1 October 2005.
The Employment Regulations require the following Hong Kong residents (“HK personnel”) working in the Mainland to apply for the Employment Permit for Taiwan, Hong Kong or Macau Personnel (“Employment Permit”):
(1) HK personnel employed with a Mainland company or organisation;
(2) HK personnel self-employed in the Mainland; and
(3) HK personnel employed by a Taiwan, Hong Kong, Macau or foreign company or organisation who are seconded by their employer to Mainland China for an accumulative period of 3 months or more within one calendar year (from 1 January to 31 December), to render services to one same PRC entity.
Point (3) above simply means that the requirement to obtain the Employment Permit would apply equally to a HK personnel who, while remaining under the employ of a Hong Kong company or other foreign company, is sent to render services to a PRC entity on a short term basis from time to time, if such short term durations add up to a period of 3 months or more within one calendar year. A PRC entity in this connection includes a Sino-foreign joint venture enterprise, a wholly foreign-owned enterprise, a representative office or other form of business operation.
According to the Employment Regulations, a company or organisation employing a HK personnel in the Mainland shall apply for the Employment Permit. The application is to be made to the prefectural (municipal) labour and social security administration authorities where the PRC entity is located. Failure to apply for the permit will result in a fine of RMB1,000.
The Employment Regulations also stipulate that HK personnel working in the Mainland are to satisfy certain criteria, including age and health. In particular, HK personnel engaging in certain technical professions specified by the government should have qualifications in accordance with the relevant regulations. The professions are outlined in the Regulations for the Recruitment of Personnel for Technical Professions 招用技术工种从业人员规定 and ranges across the sectors of industry, agriculture, commerce and services; the stipulated jobs applicable include those of secretary, welder and chauffeur, amongst others. It is therefore important to check whether the job to be taken is considered a technical profession and whether the employee has the relevant qualifications.
Aside from the Employment Regulations, there are other laws and regulations which are relevant to HK personnel working in the Mainland, including those covering taxes, social insurance and residence permits. Both the employer and the employee should review these laws and regulations.
It should also be noted that the local authorities in the Mainland may adopt different practices in implementing the above laws and regulations. It is therefore advisable to consult the relevant local authorities when dealing with China labour or employment matters.
The Administrative Regulations on the Employment of Taiwan, Hong Kong and Macau Residents in Mainland China (“Employment Regulations”) were issued by the PRC Ministry of Labour and Social Security on 14 June 2005 and took effect on 1 October 2005.
The Employment Regulations require the following Hong Kong residents (“HK personnel”) working in the Mainland to apply for the Employment Permit for Taiwan, Hong Kong or Macau Personnel (“Employment Permit”):
(1) HK personnel employed with a Mainland company or organisation;
(2) HK personnel self-employed in the Mainland; and
(3) HK personnel employed by a Taiwan, Hong Kong, Macau or foreign company or organisation who are seconded by their employer to Mainland China for an accumulative period of 3 months or more within one calendar year (from 1 January to 31 December), to render services to one same PRC entity.
Point (3) above simply means that the requirement to obtain the Employment Permit would apply equally to a HK personnel who, while remaining under the employ of a Hong Kong company or other foreign company, is sent to render services to a PRC entity on a short term basis from time to time, if such short term durations add up to a period of 3 months or more within one calendar year. A PRC entity in this connection includes a Sino-foreign joint venture enterprise, a wholly foreign-owned enterprise, a representative office or other form of business operation.
According to the Employment Regulations, a company or organisation employing a HK personnel in the Mainland shall apply for the Employment Permit. The application is to be made to the prefectural (municipal) labour and social security administration authorities where the PRC entity is located. Failure to apply for the permit will result in a fine of RMB1,000.
The Employment Regulations also stipulate that HK personnel working in the Mainland are to satisfy certain criteria, including age and health. In particular, HK personnel engaging in certain technical professions specified by the government should have qualifications in accordance with the relevant regulations. The professions are outlined in the Regulations for the Recruitment of Personnel for Technical Professions 招用技术工种从业人员规定 and ranges across the sectors of industry, agriculture, commerce and services; the stipulated jobs applicable include those of secretary, welder and chauffeur, amongst others. It is therefore important to check whether the job to be taken is considered a technical profession and whether the employee has the relevant qualifications.
Aside from the Employment Regulations, there are other laws and regulations which are relevant to HK personnel working in the Mainland, including those covering taxes, social insurance and residence permits. Both the employer and the employee should review these laws and regulations.
It should also be noted that the local authorities in the Mainland may adopt different practices in implementing the above laws and regulations. It is therefore advisable to consult the relevant local authorities when dealing with China labour or employment matters.
