Laws of the People's Republic of China

   Article 1 This set of regulations has been formulated in accordance with related provisions of the State and the actual situation of this municipality to protect the legitimate rights and interests of the resident representative offices of foreign enterprises and their Chinese employees, safeguard the normal order of the work of foreign services and promote the smooth progress of opening-up of the municipality to the outside world.

   Article 2 This set of regulations is applicable to the following entities and individuals within the area under the jurisdiction of this municipality:

1 resident representative offices of foreign enterprises that employ Chinese citizens;

2 Chinese citizens who apply for a job or accept employment (including as a chief representative or representative) in resident representative offices of foreign enterprises in respect of business cooperation, training and exchange (referred to hereinafter as Chinese employees);

3 foreign services entities have been approved by related departments of the State to provide Chinese employees to resident representative offices of foreign enterprises (referred to hereinafter as foreign services entities).

   Article 3 The foreign affairs office of the municipal government is responsible for the direct administration of the foreign services within the municipality.

The Municipal Foreign Economic Coop and Trade Commission, the Municipal Administration of Industry and Commerce, the Municipal Personnel Bureau, the Municipal Labour Bureau, the Municipal Public Security Bureau, the municipality's State and local taxation bureaus and other administrative departments shall, in accordance to their respective responsibilities, supervise and administer the work of foreign services within the municipality according to law.

   Article 4 Foreign services entities, with the approval from related State departments, may engage in operations in related to provision of Chinese employees to resident representative offices of foreign enterprises within the area under jurisdiction of the municipality. Without approval, no entities or individuals are allowed to engage in operations in related to provision of Chinese employees to resident representative offices of foreign enterprises.

   Article 5 Employment of Chinese citizens by resident representative offices of foreign enterprises should be made through a foreign services entity but not through the offices themselves or other unauthorized entities or individuals.

   Article 6 Application for a job or acceptation of employment by Chinese citizens in resident representative offices of foreign enterprises should be made through foreign services entities but not through the citizens themselves or other unauthorized entities or individuals.

   Article 7 The Chinese employees provided by the foreign services entities to resident representative offices of foreign enterprises should meet the following requirements:

1 having registered as a permanent resident or having acquired a Temporary Residence Certificate issued by the public security organs of this municipality;

2 being in compliance with provisions of other related laws and regulations.

   Article 8 The foreign services entities shall, in accordance with Labour Law of the People's Republic of China, sign labour contracts with Chinese employees and pay social insurance for the Chinese employees according to law.

Labour disputes occurred between foreign services entities and Chinese employees shall be handled in accordance with the provisions of Labour Law of the People's Republic of China.

   Article 9 Foreign services entities shall, within 15 days since the signing of labour contracts, apply for Employee Certificates or Representative Certificates and register for the Chinese employees with the municipality's administrative departments in charge of industry and commerce and report the matter to the public security bureaus for the record.

Employee Certificates and Representative Certificates are the legal documents to certify the employment of Chinese employees in resident representative offices of foreign enterprises. Without an Employee Certificate or a Representative Certificate, Chinese citizens are not allowed to work in resident representative offices of foreign enterprises.

   Article 10 In use of mass media or holding of negotiations meetings to employ Chinese citizens for resident representative offices of foreign enterprises, foreign services entities should go through, in advance, required examination and approval formalities as stipulated in this set of regulations with the municipal Personnel Bureau and Labour Bureau.

   Article 11 Violations of this set of regulations shall be punished in accordance with the following provisions according to the severity of the acts:

1 For the provision of Chinese employees to resident representative offices of foreign enterprises in violation of Article 4 of this set of regulations, the Municipal Administration of Industry and Commerce shall order to correct within a set period and mete out a fine of RMB 10,000- 50,000.

2 For resident representative offices of foreign enterprises that employ Chinese citizens by themselves, the Municipal Administration of Industry and Commerce shall order to correct within a set period and mete out a fine of RMB 10,000-50,000.

3 For Chinese citizens who work in resident representative offices of foreign enterprises without an Employee Certificate or a Representative Certificate, the Municipal Administration of Industry and Commerce shall order to connect within a set period of time and mete out a fine of RMB 5,000.

4 For foreign services entities that provide resident representative offices of foreign enterprises with Chinese employees in violation of Article 7 of this set of regulations or that fail to obtain Employee Certificates or Representative Certificates for the Chinese employees in accordance with the provisions or fail to go through the registration and change formalities, the Municipal Administration of Industry and Commerce shall mete out a fine of RMB 5,000-50,000.

5 For disturbance of the order of foreign services caused by activities of foreign services entities in violations of the laws, rules and regulations, the Foreign Affairs Office of the municipal government shall order to correct and the related administrative departments shall handle the case concerned in accordance with the regulations but if the cases are serious enough, the matter shall be reported to related departments of the State to rescind the violator's qualification of provision of Chinese employees to resident representative offices of foreign enterprises within the area under the jurisdiction of this municipality upon the approval of the municipal government.

   Article 12 This set of regulations also applies to the resident representative offices in Beijing of companies, enterprises and other economic entities started overseas by overseas Chinese and compatriots from Hong Kong, Macao and Taiwan.

   Article 13 The right to interpret this set of regulations resides in the Foreign Affairs Bureau of the people's government of the municipality.

   Article 14 This set of regulations shall enter into force as of June 15, 1996.