News & Policies
Up to RMB100,000 fine for not canceling your work permit properly
Recently, the Exit-Entry Bureau & Technical Bureau in Shanghai are launching stricter inspections on foreigners in many aspects. We will introduce relation issue briefly below:
I. Reasons for cancellation of work visa
1. The foreigner is ending the labor contract with the company.
2. The foreigner terminates the contract early.
3. When foreigners plan to leave China and handle social security and other matters, they must provide a certificate of cancellation of the foreigner’s work permit in China.
II. How to cancel a work visa
For example: A foreign employee A of a company applies for resignation and job change. The most important step for the company is to apply for cancellation of the "Work Permit for Foreigners to China" + "Work-type Residence Permit Visa" within one month from the employee’s departure date.
Official cancellation regulations: For foreigners who come to work in China and terminate the contract in advance or terminate the employment relationship, the employer shall apply for cancellation of the work permit to the Foreign Expert Bureau within one month from the date of occurrence
Under normal circumstances, the "Foreigner Work Service System in China" can only be logged in with a company account. Therefore, individuals cannot cancel their work permits.
When changing jobs locally, you must start the transfer procedures within 30 days and submit a new work permit application, otherwise you will need a new consulate-certified non-criminal record.
III. The process of work visa cancellation
1. Cancellation of work permit
The Bureau of Foreign Experts Affairs has an online pre-examination, no appointment is required after the pre-examination is passed.
2. Cancellation of residence permit visa
After obtaining the work permit cancellation certificate, go to the immigration department to go through the cancellation procedures, and the applicant must be present in person.
When changing your residential address in Shanghai, please remember that you should go to the nearest local police station or log on to the website to register. If you fail to register your address at the police station or website in time, you may have to pay a fine of 500-1,000 yuan.
IV. If the above issues are not handled properly, you may face the following penalties:
1. If the work permit and residence permit are not cancelled in time, the applicant shall pay a fine of 500 yuan/day.
2. If the employee’s work permit is not cancelled in time, the company shall pay a fine of up to 100,000 yuan.
3. Failure to cancel the residence permit within 10 working days will result in a minimum fine of 15,000 yuan, 10,000 yuan for units and 5,000 yuan for individuals.
V. In the process of transfer of work permit, delay may leave a bad record in the official system, which may affect your application for a long-term Chinese permit in the future.
Reference Policy: The Ministry of Human Resources and Social Security "Decision on Amending the Regulations on the Employment of Foreigners in China" on March 3, 2017 (Order No. 32)