Chinese Labor Law Protects Overseas Chinese Citizen

 

Li is a Chinese citizen with permanent residency in the United States. He worked for a company in China on October 15, 2015. There was no formal employment contract except for a Letter of Appointment from the Company to Li which provided the annual salary. On September 9, 2016, Li’s lawyer sent the company a letter terminating the employment relationship on the ground that the company failed to pay full salary, social insurance, and housing fund in time. Li submitted the case to the labor tribunal for the recovery of unpaid salary and the severance pay. The tribunal supported Li’s claims. The company appealed to the court.

The court held that Chinese citizens with permanent overseas residency were eligible for employees’ rights under the Labor Law of the People’s Republic of China and Labor Contract Law of the People’s Republic of China (hereinafter Labor Law and Labor Contract Law) if the employment relationship was established. In this case, Li worked for the company and operated under the supervision and management of the company. The employment relationship had been established. Li’s claims for the unpaid salary and severance pay are justified.

 

 

Every year China attracts many foreigners working in various provinces. Are they protected by Chinese labor law? You can find it out from the following guidance:

1. Foreigners and stateless people. According Article 5 of the Regulations on the Management of Employment of Foreigners in China, foreigners cannot be employed until they obtain a Work Permit issued by the local labor bureau.

2. Citizens from Hong Kong, Macao and Taiwan. Unlike foreigners, citizens from Hong Kong, Macao and Taiwan are eligible for labor law protection.

3. Chinese citizens with permanent overseas residency. The overseas Chinese refers to Chinese citizens who settle abroad with permanent residency. They are eligible for labor law protection. In contrast, foreigners with Chinese origin are not automatically eligible for labor law protection.