Chapter IV Labour Adn1inistration
Article 18 The employer and its foreign employee should，in accordance with law，conclude a labour contract，the term of which shall not exceed five years Such contract may be renewed upon expiration after the completion of clearance process in accordance with.
Article 19 of these Rules． Article 19 The Employment Permit of the employed foreigner shall cease to be effective upon the expiration of the term of the labour contract between the foreigner and his employer．If renewal is required，the employer should，within thirty days prior to the expiration of the contract，submit an application to the labour administrative authorities for the extension of term of employment，and after approval is obtained，proceed to go through formalities for the extension of the Employment Permit.
Article 20 The foreign employee should，within ten days after obtaining the approval for extension of his term of employment in china or t he change of his employment location or his employer, go through formalities for the extension or change d his residence certificate at the local public security organs.
Article 21 After the termination of the labour contract between the foreign employee and his employer，the employer should promptly report it to the labour and public security authorities，return the Employment Permit and the residence certificate of the said foreigner，and go through formalities for his exit from China
Article 22 The wage paid to the foreign employee by the employer shall not be lower than the minimum wage in the locality.
Article 23 The working hours，rest and vacation，work safety and hygiene as well as the social security of the foreign employees in China shall follow the relevant provisions of the state.
Article 24 The employer of the foreign employee in China shall be the same as specified in hlis Employment License． When the foreigner switches employers within the area designated by the Certificate Office but stays in a job of the same nature，the change must be approved by the original Certificate Office and recorded in his Employment Permit. If the foreigner is to be employed outside the area designated by the Certificate Office or switch employer within original designated area while taking up jobs of a different nature，he must go through formalities for a new Employment License
Article 25 For foreigner whose res1dence status is revoked by public security organs due to his violation of Chinese law, his labour Contract should be terminated by his employer and his Employment Permit be with drawn by the labour administrative authorities
Article 26 Should the labour disputes arise between the employer and its foreign employee， they should be handled in accordance With the Labour Law of the People's Republic of China and the Regulations of the people's Republic of China on Settlement of Labour Disputes in Enterprises
Article 27 The labour administrative authorities shall conduct an annual inspection of the Employment Pemrit Within thirty days prior the end of every year of employment of the foreigner．the employer should go through formalities of the annual inspection at the Certificate Office of the labour administrative authorities The Employment Permit shall automatically cease to be effective when the deadline is passed. In case of loss or damage of the Emp1oyment Permit during the term of his employment in China the foreigner should promptly report it to the original Certificate Office and go through formalities for the issuance of the Employment Permit.
Chapter V Penalty Provisions
Article 28 Violation of these Rules，i. e. Foreigners who work without the Employment Permit or employers which hire foreigners without the Employment License, shall be handled by the public security organs in accordance with Article 44 of the Rules Governing the lemplementation of the Law of the people's Republic of China on the Entry and Exit of Aliens.
Article 29 For foreigners who refuse to have their Employment Permit inspected by the labour administrative authorities，change their employers and professions at will or extend their term of employment without permission1 the labour administrative authorities shall with draw their Employment permit and recommend that their residence status be canceled by the public security organs in case of deportation, the costs and expenses shall be borne by the said foreigner their employers.
Article 30 For foreigners and employers who Forge, after, falsely use, transfer, buy and sell the Employment Permit and the Employment License, The labour administrative authorities shall take over the Employment Permit and the Employment License in question, confiscate the illegal proceeds and impose a fine between the thousand and one hundred thousand RMB Yuan. In serious cases whi-ch constitute a crime, their criminal responsibility of the perpetrators shall be looked into by the judicial authorities.
Article 31 in case of abuse of power, illegal collection of fees, and fraudulent practices on the part of official personnel of the Certificate Office or other department, they shall be investigated in accordance with the law for their criminal responsibility if crimes are committed, or they shall be subject to administrative disciplinary measures if the cases do not constitute a crime.
Chapter VI Supplementary Provisions
Article 32 The employment in the mainland of the residents of Tai Wan, Hong Kong and Macao region of China shall follow the Rules for the Administration of he Employment in the Mainland of Residents of Tai Wan, Hong Kong and Macao.
Article 33 These Rules do not apply to the employment of foreigners in China's Tai Wan Hong Kong and Macao region.
Article 34 Individual economic organizations and private citizens are prohibited from employing foreigners.
Article 35 The labour administrative author of the provinces，autonomous regions and municipalities directly under the Central Govemmer1t may formulate their own rules for implementation of these Rules in conjunction with the public security and relevant authorities in the locality，and report it to the Ministry of Labour，Ministry of Public Security， Ministry of Foreign Affairs and the Ministry of Foreign Trade and Economic Cooperation for putting on record.
Article 36 The Ministry of Labour shall be responsible for the interpretation of these Rules．
Article37 These Rules shall enter into force as of 1 May 1996．The Provisions Concerning the Employment in China of the Foreigners Who Have Not Yet Obtained Residence Certificate and Foreigners Who Study in China jointly promulgated by the former Ministry of Labour and Personnel and the Ministry of public Security on 50 October 1987 shall be annulled simultaneously.
