Employment in the Mainland

The "Regulation for the Administration of the Employment in Mainland China of Residents from Taiwan, Hong Kong and Macao" (hereinafter the "Regulation") issued by the Ministry of Human Resources and Social Security of the People's Republic of China applies to Hong Kong residents working in the Mainland. The term "Hong Kong residents" in the Regulation refers to Chinese citizens among residents of Hong Kong. The Regulation applies to Taiwan, Hong Kong and Macao personnel working in the Mainland as well as those enterprises, sole proprietors or other legally registered bodies (hereinafter the "employing bodies") employing them or accepting the deployment of them. Taiwan, Hong Kong and Macao personnel working in the Mainland include,

(1)	those who established employer-employee relationships with the employing bodies;
(2)	Hong Kong and Macao personnel running businesses in the Mainland in the capacity of sole proprietorship;
(3)	those whose employer-employee relationships are established with overseas, Taiwan, Hong Kong or Macao enterprises and are deployed to work in the Mainland for a cumulative period of over 3 months in a year with one employer.

For Hong Kong residents working in the Mainland, the "work permit" system applies. Those residents who are permitted to be employed by employers in the Mainland would be issued the "Work Permit for Taiwan, Hong Kong and Macao Personnel" by labour departments of relevant provinces, autonomous regions and directly administered municipalities, and their authorized machineries. They are hence protected by the "Labour Law of the People's Republic of China" and other related laws and regulations.

The Regulation also stipulates that employing bodies should enter into employment contracts with their Taiwan, Hong Kong and Macao employees and make contribution to social insurance in accordance with the "Provisional Regulation on Social Insurance Contribution". The Office of the Government of Hong Kong Special Administrative Region in Beijing has been advised by the Ministry of Labour and Social Security in 2005 that this provision applies only to those employees whose employer-employee relationships exist in the Mainland and does not apply to those employees who are deployed from Taiwan, Hong Kong and Macao to work in the Mainland and their employer-employee relationships are not situated in the Mainland.

According to the new Regulation promulgated by the Ministry of Labour and Social Security in June 2005, starting from 1 October 2005, Hong Kong residents to work in the Mainland should meet the following requirements:

(1)	aged between 18 to 60 (those directly participate in investment projects or those belonging to professional or technical posts which are in great shortage in the Mainland may exceed 60 years old.);
(2)	in good health;
(3)	possess a valid travel document (including Re-entry Permit issued by relevant authorities in the mainland)
(4)	have relevant proof of qualification if the person is to engage in the prescribed occupations (technical posts) as required by the law;
(5)	fulfill any other requirements as stipulated by laws and regulations.

Employing bodies applying for work permits for their Taiwan, Hong Kong and Macao employees should submit to the Labour and Social Security administrative departments at municipal level an application form together with the following documents:

(1)	proof of business registration of the employing body;
(2)	valid travel document of the person to be employed;
(3)	proof of health of the person to be employed;
(4)	document proving the employment or the intention of employment;
(5)	relevant proof of qualification if the person to be employed is to engage in the prescribed occupations (technical posts) as required by the law;
(6)	other documents as required by laws and regulations.

Exemption from Work Permit

Hong Kong experts employed through the State Administration of Foreign Experts Affairs, legal representatives of commercial organizations established in Mainland China by Hong Kong residents, or investors of foreign enterprises established in Mainland China with legal person status are exempted from applying for Work Permits.