When Chinese companies recruit foreign talents, if they do not fully understand relevant laws and regulations, they may face the following five core legal risks. These risks not only lead to administrative penalties and economic compensation, but may also affect the reputation of the enterprise and even involve criminal liability, which should be highly valued:
当中国公司招聘外国人才时，如果未能充分了解相关法律法规，可能会面临以下五大核心法律风险。这些风险不仅会导致行政处罚和经济赔偿，还可能影响企业的声誉，甚至涉及刑事责任，应当高度重视：
Core issues
核心问题
Failing to apply for Foreigner's Work Permit and Visa Z (work visa) for foreign employees according to law, or failing to renew the expired certificate.
未依法为外籍员工申请外国人工作许可证和 Z 字签证（工作签证），或未及时续签已过期的证件。
legal consequence
法律后果
-Administrative penalty: according to Article 80 of the Law on the Administration of Exit and Entry, illegal employment of foreigners can be imposed a fine of 10000 yuan per person, with a maximum fine of 100000 yuan in serious cases.
-行政处罚：根据《中华人民共和国出境入境管理法》第八十条，非法雇佣外国人可处以每人 10000 元罚款，情节严重的，最高可处 100000 元罚款。
-Criminal responsibility: If foreign employees are suspected of illegal residence, the company's leaders may be held criminally responsible.
-刑事责任：如果外籍员工涉嫌非法居留，公司领导可能被追究刑事责任。
case
案例
A technology company was fined 50000 yuan and its employees were deported for failing to renew their work permits for foreign engineers.
某科技公司因未及时续签外籍工程师的工作许可证，被罚款 50000 元，员工被遣返。
Compliance recommendations
合规建议
-Apply for a work permit to the local foreign experts bureau or science and technology bureau in advance to ensure that the post meets the Classification Standards for Foreigners Working in China.
-提前向当地外国专家局或科技局申请工作许可，确保岗位符合《外国人在中国工作分类标准》。
-Apply for an extension 30 days before the visa expires to avoid "illegal employment".
-在签证到期前 30 天申请延期，避免“非法雇佣”。
Core issues
核心问题
The terms of the labor contract do not comply with the Labor Contract Law or do not cover the special rights of foreign employees (such as family leave, cross-border social security, etc.).
劳动合同条款不符合《中华人民共和国劳动合同法》规定，或未涵盖外籍员工的特殊权利（如探亲假、跨境社保等）。
legal consequence
法律后果
-Invalid Contract: If the contract violates Chinese law (such as a salary below the minimum wage standard), it may be deemed invalid.
-合同无效：如果合同违反中国法律（如工资低于最低工资标准），可能被认定为无效。
-Compensation disputes: Failure to clearly stipulate termination conditions or non compete clauses can easily lead to high compensation lawsuits.
-赔偿纠纷：未明确约定解除条件或竞业限制条款，容易引发高额赔偿诉讼。
case
案例
A foreign executive sued the company for compensation of 12 months' salary after leaving due to the absence of a "unilateral termination clause" in their labor contract.
某外籍高管因劳动合同中缺少“单方解除条款”，离职后起诉公司，索要 12 个月工资赔偿。
Compliance recommendations
合规建议
-The contract should be in both Chinese and English versions, clearly specifying the salary structure, work location, and termination conditions.
-合同应有中英文版本，明确约定工资结构、工作地点和解除条件。
-Include exclusive terms for foreign employees (such as annual home leave, international medical insurance, etc.).
-增设外籍员工专属条款（如每年回国探亲假、国际医疗保险等）。
Core issues
核心问题
Failure to withhold and pay personal income tax for foreign employees in accordance with the law, or failure to register for social security in accordance with regulations.
未依法为外籍员工代扣代缴个人所得税，或未按规定缴纳社会保险。
legal consequence
法律后果
-Supplementary payment+penalty: According to the Tax Collection and Administration Law, failure to pay taxes in full may result in a penalty of 0.5-3 times the amount of outstanding taxes.
-补缴 + 罚款：根据《中华人民共和国税收征收管理法》，未足额缴纳税款的，可能被处以欠缴税款 0.5 - 3 倍的罚款。
-Credit punishment: Enterprises may be included in the tax blacklist, which may affect financing or listing.
-信用惩戒：企业可能被纳入税务黑名单，影响融资或上市。
Compliance Points
合规要点
-Personal income tax: Foreign employees can enjoy special additional deductions (such as housing subsidies and children's education expenses), but they need to provide legal proof.
-个人所得税：外籍员工可享受专项附加扣除（如住房补贴、子女教育费用），但需提供合法证明。
-Social security:
-社会保险：
-Starting from 2022, some cities (such as Shanghai) allow foreign employees to voluntarily participate in social security, but it must be clearly stipulated in the contract.
-自 2022 年起，部分城市（如上海）允许外籍员工自愿参加社会保险，但需在合同中明确约定。
-Uninsured areas need to purchase commercial insurance (such as accident insurance and medical insurance).
-未参保地区需购买商业保险（如意外险、医疗保险）。
Core issues
核心问题
Hiring foreign employees to engage in prohibited positions (such as tour guides, traditional Chinese medicine practitioners) or unapproved restricted industries (such as news publishing, education).
招聘外籍员工从事禁止岗位（如导游、中医师）或未经批准的限制行业（如新闻出版、教育）。
Legal basis
法律依据
-The Regulations on the Administration of Foreigners' Work in China explicitly prohibits/restricts the employment of foreigners in the industries and positions.
-《外国人在中国工作管理条例》明确规定禁止/限制外国人在中国从事某些行业和岗位的工作。
legal consequence
法律后果
-The business license of the enterprise has been revoked, and foreign employees have been repatriated.
-企业营业执照被吊销，外籍员工被遣返。
case
案例
A certain training institution hired foreign personnel to engage in Chinese language teaching (without obtaining a Foreign Expert Certificate), and the institution was banned and fined 100000 yuan.
某培训机构聘请外籍人员从事汉语教学（未取得外国专家证），机构被禁并被罚款 100000 元。
Compliance recommendations
合规建议
-Check whether the target post belongs to the Negative List of Foreigners' Work Permit to China.
-查看目标岗位是否属于《外国人来华工作许可负面清单》。
-Education, healthcare and other industries require additional application for industry access permits.
-教育、医疗等行业需额外申请行业准入许可。
Core issues
核心问题
Failure to terminate foreign employees in accordance with legal procedures, or failure to properly handle labor disputes.
未按照法定程序解聘外籍员工，或未妥善处理劳动争议。
legal consequence
法律后果
-Foreign employees can file a lawsuit with the labor arbitration commission or court, and the company may face double the economic compensation.
-外籍员工可向劳动仲裁委员会或法院提起诉讼，公司可能面临双倍经济赔偿。
Compliance process
合规流程
1. Basis for termination: It is necessary to prove that the employee has seriously violated the rules and regulations (such as attendance fraud, leaks), and that the rules and regulations have been publicly announced through democratic procedures.
1. 解聘依据：需证明员工严重违反规章制度（如考勤造假、泄密），且规章制度已通过民主程序公示。
2. Notification Procedure: Provide written notice 30 days in advance and report to the local Human Resources and Social Security Bureau.
2.通知程序：提前 30 天书面通知，并向当地人力资源和社会保障局报告。
3. Dispute resolution: It is recommended to agree on the jurisdiction of arbitration or litigation (with priority given to the court in the location of the Chinese enterprise).
3. 争议解决：建议约定仲裁或诉讼管辖地（优先选择中国企业所在地法院）。
1. Establish compliance files for foreign employees, including work permits, labor contracts, tax records, etc., and regularly verify their validity period.
1. 建立外籍员工合规档案，包括工作许可、劳动合同、税务记录等，并定期核查有效期。
2. Hire professional service agencies: Entrust foreign-related law firms or human resources agencies to review the entire employment process.
2. 聘请专业服务机构：委托涉外律所或人力资源机构审查整个雇佣流程。
3. Internal training: Conduct specialized training on the "Foreign Labor Law" and "Exit Entry Management Law" for HR and legal teams.
3. 内部培训：为 HR 和法务团队开展“涉外劳动法”和“出入境管理法”专项培训。
The compliance core of foreign talent recruitment lies in: legalization of documents, refinement of contracts, transparency of taxation, compliance of positions, and proceduralization of dismissal.
招聘外国人才的合规核心在于：证件合法化、合同精细化、税收透明化、岗位合规化和解聘程序化。
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