Laws of the People's Republic of China

No.26

The Provisions for the Administration on the Employment of Taiwan, Hong Kong and Macao Residents in the Mainland, which has been adopted at the tenth executive meeting of the Ministry of Labor and Social Security on June 2, 2005, are hereby promulgated and shall go into effect as of October 1, 2005. Zheng Silin, the Minister of Ministry of Labor and Social Security

June 14, 2005

Provisions for the Administration on the Employment of Taiwan, Hong Kong and Macao Residents in the Mainland

Article 1

With a view to maintaining the lawful rights and interests related to the employment of Chinese citizens resided in Taiwan, Hong Kong and Macao in the Mainland (hereinafter referred to as the persons from Taiwan, Hong Kong and Macao) and strengthening the administration on the employment of the persons from Taiwan, Hong Kong and Macao by the employing entities in the Mainland, the present Provisions are formulated according to the Labor Law of the People's Republic of China and other relevant laws and administrative regulations.

Article 2

The present Provisions shall be applicable to the persons from Taiwan, Hong Kong and Macao and working in the Mainland, and the enterprises, public institutions, individual industrial and commercial households and other legally registered organizations in the Mainland (hereinafter referred to as the employing entities) that hire persons from Taiwan, Hong Kong and Macao or accept the assigned persons from Taiwan, Hong Kong and Macao.

If there are other state provisions for the administration on the employment of experts from the regions of Taiwan, Hong Kong and Macao, such provisions shall prevail.

Article 3

The "person from Taiwan, Hong Kong and Macao and working in the Mainland" as mentioned in the present Provisions refers to:

(1)

the persons that have established labor relationship with the employing entities;

(2)

the persons from Hong Kong and Macao that engage in self-employed business in the Mainland; and

(3)

the persons who have established the labor relationship with foreign or Taiwan, Hong Kong and Macao employing entities and assigned by them to work in a same employing entity in the Mainland accumulatively for more than three months within one year (from January 1 to December 31 of the Gregorian calendar year).

Article 4

The employment of the persons from Taiwan, Hong Kong and Macao in the Mainland shall be subject to the employment permit system. Where an employing entity plans to hire the persons from Taiwan, Hong Kong and Macao or accept the assigned persons from Taiwan, Hong Kong and Macao, it shall apply for the Employment Permits for them (hereinafter referred to as the employment permits); persons from Taiwan, Hong Kong or Macao, who engage in the individual industrial and commercial households in the Mainland, shall apply for employment permits by themselves. Upon authorization and with employment permits, the employment of the persons from Taiwan, Hong Kong and Macao in the Mainland is protected by law.

The archival filing system shall be adopted when an employing entity hires the persons from Taiwan, Hong Kong and Macao or accepts the assigned persons from Taiwan, Hong Kong and Macao.

The Ministry of Labor and Social Security shall print the Employment Permits uniformly.

Article 5

When hiring persons from Taiwan, Hong Kong and Macao or accepting the assigned persons from Taiwan, Hong Kong and Macao, the employing entity shall observe the state laws and regulations.

Article 6

Where an employing entity plans to hire persons from Taiwan, Hong Kong and Macao or accept the assigned persons from Taiwan, Hong Kong and Macao, the said persons shall meet the following conditions:

(1)

being aged 18 up to 60 (the age of an investor that directly participates in the business operation or a technical person badly needed in the Mainland may be over 60);

(2)

being in good health;

(3)

having effective travel permits (including the valid certificates for Taiwan, Hong Kong and Macao residents to come and go to the Mainland as issued by the competent organs in the Mainland);

(4)

having corresponding qualification certificates as prescribed by the State in the case of that the engagement in professional (technical) occupations is prescribed by the State; and

(5)

meeting other qualifications as prescribed by laws and regulations.

Article 7

When applying for employment permits for the employment of the persons from Taiwan, Hong Kong and Macao in the Mainland, an employing entity shall submit the Application Form for the Employment of Taiwan, Hong Kong and Macao Residents in the Mainland and the following effective documents to the local administrative department of labor and social security at the prefecture (municipal) level:

(1)

the business license or the registration certificate of the employing entity;

(2)

the effective travel permits of the persons to be hired or the assigned persons to be accepted;

(3)

the health certificates of the persons to be hired or the assigned persons to be accepted;

(4)

the letters of intent for employment or employment certificates;

(5)

the corresponding professional qualification certificates if the persons to be hired will engage in the professional (technical) occupations as prescribed by the State; and

(6)

other documents as prescribed by laws and regulations.

Article 8

The administrative departments of labor and social security shall make a decision on the approval of employment within ten working days as of the receipt of the Application Form for the Employment of Taiwan, Hong Kong and Macao Residents in the Mainland and the relevant documents as submitted by an employing entity; and if the conditions as prescribed by Article 6 of the present Provisions are met, the administrative departments shall approve the employment and issue an employment permits; if the conditions as prescribed by Article 6 of the present Provisions are not met, the administrative departments shall disapprove the employment and notice the employing entity of the disapproval in written form and explain the reasons.

Article 9

The employing entity shall, upon the strength of employment permits, go through the formalities for registration and archival filing for the employment of persons from Taiwan, Hong Kong and Macao at the administrative department of labor and social security that has issued the said permits.

Article 10

Where a person from Hong Kong or Macao engages in the individual industrial and commercial household in the Mainland, he shall, upon the strength of household business license, his health certificate and effective travel permit, apply with the local administrative department of labor and social security at the prefecture (municipal) level for an employment permit. The administrative department of labor and social security shall handle it within five working days upon the receipt of the documents as submitted by the person from Hong Kong or Macao.

Article 11

The employing entity shall sign labor contracts with persons from Taiwan, Hong Kong or Macao as hired thereby, and pay the social insurance premiums in light of the Interim Provisions on the Collection and Payment of Social Insurance Premiums.

Article 12

When an employing entity terminates or dissolves the labor contracts with persons from Taiwan, Hong Kong or Macao, or when the employment terms of persons from Taiwan, Hong Kong or Macao expire, the employing entity shall write off the employment permit at the organ that originally issued the permit within ten working days upon the termination or dissolution of the labor contracts or upon the expiration of the employment terms of the persons from Taiwan, Hong Kong or Macao.

When persons from Hong Kong or Macao engaging in the individual industrial and commercial household in the Mainland suspend or cease his business, they shall write off the employment permits at the organs that have originally issued the permits within 30 working days upon the suspension or ceasing.

Article 13

In case any employment permit is lost or destroyed, the employing entity shall apply to the administrative department of labor and social security that has issued the said permit for re-issuing a new employment permit for the person from Taiwan, Hong Kong or Macao.

Article 14

The employing entity for which a person from Taiwan, Hong Kong or Macao works shall be identical with that indicated in the employment permit. Where the employing entity is altered, the altered employing entity shall apply to the local administrative department of labor and social security at the prefecture (municipal) level for another employment permits for the persons from Taiwan, Hong Kong or Macao.

Article 15

If a labor dispute between an employing entity and a person from Taiwan, Hong Kong or Macao hired by it occurs, it shall be settled according to the relevant state provisions on the settlement of labor disputes.

Article 16

In case an employing entity fails to apply for employment permits or go through the formalities for archival filing when hiring any person from Taiwan, Hong Kong or Macao or accepting any assigned person from Taiwan, Hong Kong or Macao, it shall be charged to make corrections by the administrative department of labor and social security, and a fine of 1000 Yuan may be imposed upon it.

Article 17

In case an employing entity fails to write off the employment permit when terminating or dissolving a labor contract with any person from Taiwan, Hong Kong or Macao or when the employment term of any person from Taiwan, Hong Kong or Macao expires, it shall be charged to make corrections by the administrative department of labor and social security, and a fine of 1000 Yuan may be imposed upon it.

Article 18

In case an employing entity forges, alters, fraudulently uses or transfers the employment permits, it shall be charged to make corrections by the administrative department of labor and social security, and be fined 1000 Yuan upon it. And the said employing entity may not hire any person from Taiwan, Hong Kong or Macao within one year.

Article 19

The present Provisions shall go into effect as of October 1, 2005. The Provisions on the Administration of the Employment of Taiwan, Hong Kong and Macao Residents in the Mainland as promulgated by the former Ministry of Labor on February 21, 1994 shall be abolished simultaneously.