How Important is a Employment Permit?
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Generally speaking, foreigners need to get an Employment Permit to work in China, unless they hold a Foreign Expert Certificates. Enterprises must apply for an Employment license first after submitting necessary documents such as resumes, qualification certificates and health certificates. Even if the expatriate is the owner of the enterprise, such as a WFOE.
Without an Employment Permit, the employment contract is meaningless. The employer could terminate the employment contract as they wish without paying any severance pay. The expats can only get remuneration for his/her job as specified in the contract, but they can’t get any compensation like their Chinese colleague.