Chapter I General Provisions

Article 1 These Provisions are formulated in accordance with the relevant laws and regulations and for the purposes of strengthening the administration of employment of Taiwan, Hong Kong and Macao residents (hereinafter referred to as the persons from Taiwan, Hong Kong and Macao) in the Mainland and the units in the Mainland employing such persons and protecting the lawful rights and interests of employed persons and employing units.

Article 2 Employment of the persons from Taiwan, Hong Kong and Macao in the Mainland mentioned in these Provisions means the acts that the persons from Taiwan, Hong Kong and Macao are employed according to law by the employing units in the Mainland to engage in certain social labors and get labor remuneration or business income.

Article 3 These Provisions apply to all employing units applying for employment of the persons from Taiwan, Hong Kong and Macao, including private industrial and commercial households, and the persons from Taiwan, Hong Kong and Macao seeking employment in the Mainland.

Article 4 These Provisions do not apply to the experts from the regions of Taiwan, Hong Kong and Macao invited through the State Bureau of Foreign Experts, legal representatives of business representative offices set up in the Mainland by Taiwan, Hong Kong and Macao, and investors with legal person status who set up foreign-capital enterprises in the Mainland.

Article 5 Employment of the persons from Taiwan, Hong Kong and Macao in the Mainland is subject to the employment permit system. Persons from Taiwan, Hong Kong and Macao having the employment permit may seek employment in the Mainland and are protected by law.

Article 6 Labor departments of provinces, autonomous regions and municipalities directly under the Central Government and their authorized labor departments at the prefecture and city levels are responsible for the work of administration of employment of the persons from Taiwan, Hong Kong and Macao in the Mainland.

Chapter II Application, Examination and Approval for Employment

Article 7 An employing unit in the Mainland intending to employ a person from Taiwan, Hong Kong or Macao must apply to the labor department; and a person from Taiwan, Hong Kong or Macao seeking employment in the Mainland must fill in the Application Form for Employment of Taiwan, Hong Kong or Macao Residents in the Mainland (see Attachment 1) and must be approved by the labor department.

Article 8 A person from Taiwan, Hong Kong or Macao seeking employment in theMainland must meet the following requirements:

(1) to have attained the age of 18, healthy, and to have a valid travel permit issued by the competent organ in the Mainland.

(2) to have a professional qualification certificate or corresponding certificate of education necessary for the work to be engaged in, as well as practical experiences in engaging in the profession.

Article 9 An employing unit in the Mainland intending to employ a person from Taiwan, Hong Kong or Macao must meet the following requirements:

(1) It has a special demand on the position for which the person from Taiwan, Hong Kong or Macao is to be employed, and there is temporary shortage of a proper candidate for the said position in the Mainland;

(2) It has a certificate issued by the employment agency organization under the labor department proving the impossibility in finding and employing a proper person needed within its area, or unable to employ a proper person needed for the position after three-week open employment activities carried out under the guidance of the labor department; and

(3) It may not violate the relevant provisions of the State in employing the persons from Taiwan, Hong Kong and Macao.

Article 10 If the contract of a foreign-capital enterprise established in the Mainland stipulates that the general manager or deputy general manager is the person from Taiwan, Hong Kong or Macao, he shall be exempt from examination and approval procedures for employment.

Article 11 If a person from Taiwan, Hong Kong or Macao is examined and approved to seek employment in the Mainland, the labor department of the province, autonomous region or municipality directly under the Central Government or its authorized labor department at the prefecture or city level issues him an Employment Permit of the Person from Taiwan, Hong Kong or Macao (see Attachment 2, and hereinafter referred to as the Employment Permit). The Employment Permit is made centrally by the Ministry of Labor.

Article 12 Persons from Taiwan, Hong Kong and Macao who are approved to seek employment in the Mainland shall, by presenting the Employment Permit, apply to local public security organs for temporary residence.

Chapter III Labor Management and Supervision

Article 13 Persons from Taiwan, Hong Kong and Macao who are employed in the Mainland shall abide by laws and regulations of the State. Labor departments exercise labor management over the employed persons and employing units.

Article 14 Employing units and employed persons must sign a labor contract in accordance with the relevant provisions for the administration of the labor contract promulgated by the State. The rights and obligations of both sides, the time limit, alteration, termination of a labor contract, the conditions of releasing from the labor contract, responsibilities for violating the labor contract and other proceedings needed to be defined should be prescribed clearly in the labor contract.

Article 15 If a labor dispute arises in the course of performing a labor contract, it is settled according to the Regulations of the People¡¦s Republic of China for the Settlement of Enterprise Labor Disputes.

Article 16 Labor departments implement the annual inspection system on the Employment Permit. When an employing unit employs a person from Taiwan, Hong Kong or Macao up to one year each time, it shall, within one month at the expiration of the period, voluntarily go to the labor department to go through the annual inspection procedures. If such procedures are not gone through on schedule, the Employment Permit becomes invalid automatically.

Article 17 The employment of a person from Taiwan, Hong Kong or Macao by an employing unit shall end at the expiration of the contract term. If it is necessary to extend the employment, it must, one month prior the expiration of the original contract term, submit an application for extending the employment of the person from Taiwan, Hong Kong or Macao to the labor department, and the employment may be extended only after being approved.

Article 18 If a person from Taiwan, Hong Kong or Macao is dismissed by an employing unit or terminates his contract on his own, the employing unit shall timely report to the labor department to take back and cancel his Employment Permit. If the Employment Permit is lost or damaged, it shall promptly report to the original issuing organ and apply for a new one.

Article 19 The unit employing a person from Taiwan, Hong Kong or Macao must be the same as the employing unit indicated in the Employment Permit. The Employment Permit is valid only in the employing unit approved within the said jurisdiction area. A change of the employing unit within the jurisdiction area must be approved by the original issuing organ and be subject to the procedures for the change. If the employment is sought outside the original jurisdiction area, the procedures for employment application, examination and approval must be gone through again.

Article 20 If an employment agency or brokerage service organization in the Mainland intends to introduce the persons from Taiwan, Hong Kong and Macao to work in the Mainland, it must file an application to the labor department of the province, autonomous region or municipality directly under the Central Government in the place of its location and may engage in such service only after being approved and authorized.

Article 21 Employing units and employed persons shall voluntarily accept the supervision from labor supervision organizations over their implementation of related labor laws and regulations.

Chapter IV Penalty Provisions

Article 22 A person from Taiwan, Hong Kong or Macao who, in violation of Article 7 of these Provisions, seeks an employment without approval, is ordered to stop the employment and imposed a fine of 5 to 10 times of his monthly average wage. The specific standard is formulated by the labor department of the province, autonomous region or municipality directly under the Central Government.

Article 23 If an employing unit violates Article 7 of these Provisions, it is ordered to stop the employment and imposed a fine of 10 to 15 times of the monthly average wage of the employed person. The specific standard is formulated by the labor department of the province, autonomous region or municipality directly under the Central Government.

Article 24 If an organization or individual, in violation of Article 20 of these Provisions, illegally engages in introducing the persons from Taiwan, Hong Kong and Macao to work in the Mainland, all of its or his illegal incomes shall be confiscated, and it or he shall be deemed an illegal labor service and punished according to law.

Article 25 If a person from Taiwan, Hong Kong or Macao forges, alters, passes off or transfers the Employment Permit or refuses the inspection from the labor department, the labor department takes back and cancels the Employment Permit and imposes on him a fine of 5 to 10 times of his monthly average wage. The specific standard is formulated by the labor department of the province, autonomous region or municipality directly under the Central Government. If a crime is constituted, he is handed over to the judicial department for punishment.

Article 26 If a person from Taiwan, Hong Kong or Macao fails to comply with or violates these Provisions, the labor department refuses to issue the Employment Permit thereto. If the Employment Permit has already been issued thereto, it shall be revoked and invalidated.

Article 27 Penalties specified in this Chapter are decided by labor departments. All fines collected are timely turned over into the State Treasury according to the unified provisions of the State.

Chapter V Supplementary Provisions

Article 28 Labor departments of provinces, autonomous regions and municipalities directly under the Central Government may formulate the rules for implementation in accordance with these Provisions, and submit them to the Ministry of Labor for the record.

Article 29 The Ministry of Labor is responsible for the interpretation of these Provisions.

Article 30 These Provisions shall enter into force as of the date of promulgation, that is, as of February 21, 1994. Persons from Taiwan, Hong Kong and Macao who, without approval of labor departments of provinces, autonomous regions and municipalities directly under the Central Government, have been already employed by employing units in the Mainland prior to the said date, shall go through the application procedures according to these Provisions within one month from the date of operation of these Provisions. Labor departments shall issue the Employment Permit to those who meet the requirements, and deal with those who fail to meet the requirements or fail to go through the application procedures as illegal employment.

Promulgated by The Ministry of Labor on 1994-2-21