Regulation on the Administration of Foreign Labor Cooperation

Regulation on the Administration of Foreign Labor Cooperation Order of the State Council (No. 620) Regulation on the Administration of Foreign Labor Cooperation, as adopted at the 203rd executive meeting of the State Council on May 16, 2012, is hereby issued and shall come into force on August 1, 2012. Premier: Wen Jiabao June 4, 2012 Regulation on the Administration of Foreign Labor Cooperation Chapter I General Provisions Article 1 This Regulation is formulated in order to standardize foreign labor cooperation, protect the lawful rights and interests of contract workers, and promote the healthy development of foreign labor cooperation. Article 2 The term “foreign labor cooperation” as mentioned in this Regulation means the operational activities of organizing contract workers to work in other countries or regions for foreign enterprises or institutions (hereinafter referred to as “foreign employers”). Foreign enterprises, institutions or individuals shall not recruit contract workers within the territory of China to work abroad. Article 3 The state encourages and supports legal foreign labor cooperation, improvement of foreign labor cooperation and protection of lawful rights and interests of contract workers. The relevant departments of the State Council shall formulate and improve policies and measures that promote the development of foreign labor cooperation, and establish and improve foreign labor cooperation service systems, as well as risk prevention and handling mechanisms. Article 4 The commerce department of the State Council shall be responsible for the nationwide supervision and administration over foreign labor cooperation. The departments of foreign affairs, public security, human resources and social security, transport, housing and urban-rural development, fishery, administrative department for industry and commerce and other relevant departments of the State Council shall, within the scope of their respective duties, be responsible for the relevant work in the supervision and administration over foreign labor cooperation. The local people's governments at or above the county level shall uniformly lead, organize and coordinate the supervision and administration over foreign labor cooperation within their respective administrative regions. The commerce departments of local people's governments at or above the county level shall be responsible for the supervision and administration over foreign labor cooperation within their respective administrative regions, and other relevant departments shall, within the scope of their respective duties, be responsible for the relevant work in the supervision and administration over foreign labor cooperation. Chapter II Enterprises and Contract Workers Engaging in Foreign labor cooperation Article 5 Enterprises engaging in foreign labor cooperation shall obtain qualifications to engage in foreign labor cooperation with the approval of the commerce department of the people's government at the level of a province or districted city in accordance with the provisions of the people's government of the province, autonomous region or municipality directly under the Central Government. Article 6 Anyone that applies for qualifications to engage in foreign labor cooperation shall meet the following conditions: 1. meets the conditions for being an enterprise legal person; 2. its paid-in registered capital is not less than six million yuan; 3. has three or more managers who are familiar with the foreign labor cooperation business; 4. has a sound internal management system and emergency disposal system; and 5. its legal representative has no record of any intentional crimes. Article 7 An enterprise that applies for qualifications to engage in foreign labor cooperation shall submit to the commerce department of the local people's government at the level of a province or districted city (hereinafter referred to as the “commerce department responsible for examination and approval”) the materials proving that it meets the conditions as provided for in Article 6 of this Regulation. The commerce department responsible for examination and approval shall, within 20 working days of receipt of certification materials, conduct examination and make an approval or disapproval decision. If the department makes an approval decision, it shall issue the qualification certificate for foreign labor cooperation; and if the department makes a disapproval decision, it shall notify the applicant in writing and state the reasons for the disapproval. The applicant shall lawfully undergo registration formalities with the administrative department for industry and commerce based on the qualification certificate for foreign labor cooperation. The commerce department responsible for examination and approval shall submit the list of enterprises that have lawfully obtained the qualification certificate for foreign labor cooperation and have undergone registration formalities (hereinafter referred to as “foreign labor cooperation enterprises”) to the commerce department of the State Council, which shall notify Chinese embassies and consulates stationed abroad in a timely manner. Enterprises failing to lawfully obtain the qualification certificate for foreign labor cooperation and undergo registration formalities shall not engage in foreign labor cooperation. Article 8 Foreign labor cooperation enterprises shall not allow other entities or individuals to organize contract workers to work abroad in the enterprises' names. No entity or individual may organize contract workers to work abroad in the name of business, tourism or overseas study. Article 9 A foreign labor cooperation enterprise shall, within five working days of the date of registration with the administrative department for industry and commerce, open a special account at the bank designated by the commerce department responsible for examination and approval to deposit a risk disposal reserve for foreign labor cooperation of not less than three million yuan (hereinafter referred to as “reserve”). The reserve may be deposited by submittal of bank guarantee of equivalent amount to the commerce department responsible for examination and approval. The commerce department responsible for examination and approval shall release to the public the list of foreign labor cooperation enterprises that have deposited the reserve. Article 10 The reserve will be used to pay the following expenses that the foreign labor cooperation enterprise refuses or is unable to assume: 1. service fees which are collected by the foreign labor cooperation enterprise in violation of the provisions of the state and shall be returned to contract workers; 2. labor remuneration that are paid by the foreign labor cooperation enterprise to contract workers in accordance with the law or as stipulated; 3. expenses required for compensation for the losses of contract workers pursuant to law; and 4. expenses required for contract workers to return to China or receive emergent relief due to the occurrence of any emergency. The foreign labor cooperation enterprise shall, after using the reserve, replenish the reserve to the original amount within 20 working days of the date of use. The specific measures for the deposit and use of reserves and the supervision and administration thereof shall be formulated by the commerce department of the State Council jointly with the financial department of the State Council. Article 11 No foreign labor cooperation enterprise shall organize contract workers to go abroad to engage in work relating to gambling and pornographic activities. Article 12 Foreign labor cooperation enterprises shall arrange for contract workers to receive training on vocational skills, safety protection knowledge, foreign languages, as well as relevant laws, religious beliefs, customs and other knowledge of the country or region at the place where the labor use project is located, as required for working abroad; where no arrangements are made for contract workers to receive training, such contract workers shall not be organized to work abroad. Contract workers shall receive training, obtain the relevant skills and knowledge required for working abroad, and improve the ability to satisfy the requirements for working abroad and safety protection. Article 13 Foreign labor cooperation enterprises shall purchase personal accident insurance for contract workers when they work abroad unless the foreign labor cooperation enterprises and foreign employers have agreed that the foreign employers shall purchase such insurance for contract workers. Article 14 Foreign labor cooperation enterprises shall undergo exit formalities for contract workers, and assist in undergoing the foreign residence and work permits and other formalities for contract workers. A foreign labor cooperation enterprise shall, after organizing the exit of contract workers, report the relevant information in a timely manner to Chinese embassy or consulate stationed in the country where the labor use project is located. Article 15 Foreign labor cooperation enterprises and contract workers shall abide by the laws of the countries or regions at the places where labor use projects are located, and respect the local religious beliefs, customs and cultural traditions. Foreign labor cooperation enterprises and contract workers shall not conduct activities that damage national security or national interest. Article 16 Foreign labor cooperation enterprises shall track and obtain the information on contract workers' work and living conditions abroad, assist in resolving difficulties and problems in contract workers' work and life, and report the reasonable requirements of contract workers to foreign employers in a timely manner. Where a foreign labor cooperation enterprise dispatches 100 or more contract workers to the same country or region, it shall dispatch accompanying managers, and submit the list of such managers to Chinese embassy or consulate stationed in the country where the labor use project is located. Article 17 Foreign labor cooperation enterprises shall formulate emergency response plans. If any emergencies occur abroad, the foreign l......