Even With Five-Star Card, No Right to a Permanent Contract?

Source: OT-Team(G)

Beijing has released details of a case where a foreign national obtained a permanent employment contract with a local firm.

Case Overview

The individual, identified as "M," holds a Foreign Permanent Resident ID Card—commonly known as the "Chinese green card"—and began working for an information technology company in 2015. Throughout M's tenure, he was described as diligent, well-regarded by colleagues, and recognized for his professional competence.

As his years of service accumulated, M requested that the company sign an open-ended (no fixed term) labor contract, aiming for greater job stability. However, the company expressed uncertainty over whether such a contract could legally be concluded with a foreign national holding a Chinese green card. M argued that, having worked in China for many years and meeting the statutory conditions, he was entitled to such an agreement. The company, however, remained concerned about the legal ambiguity surrounding the issue.

After failed negotiations, M filed for labor arbitration, requesting that the employment relationship be formally recognized as open-ended and that the corresponding contract be executed.

Arbitration Outcome

Following a review of the case, the arbitration committee clarified the relevant legal framework to both parties. Ultimately, the dispute was successfully resolved through mediation, and the company signed an open-ended labor contract with M.

Legal Context

According to the Regulations on the Administration of Permanent Residence of Foreigners in China, individuals holding a Chinese green card are, in principle, entitled to the same rights and obligations as Chinese citizens, excluding political and other specific rights set out by law.

In the realm of employment, such foreign residents are exempt from obtaining a work permit and are protected under the Labor Contract Law of the People's Republic of China. Article 14 of the law stipulates circumstances under which employers must offer an open-ended contract, including when an employee has worked continuously for the same employer for 10 years or more.

Given that green card holders enjoy equal labor rights as Chinese nationals, they are likewise entitled to request open-ended employment contracts when these legal conditions are met.