Sept 1 ： China’s New Rules Shake Up Foreigners’ Job Relations

Source: OT-Team(G), 最高人民法院; 上海二中院

The Supreme People's Court has issued the Interpretation (II) on the Application of Law in the Trial of Labor Dispute Cases ("Interpretation II"), which takes effect on September 1, 2025.

This new interpretation introduces provisions concerning labor relations involving foreign nationals. In cases where prior judicial interpretations conflict with this document, Interpretation II shall prevail.

Key Provisions

Article 4 stipulates that where a foreign national establishes an employment relationship with an employer within the territory of the People's Republic of China, the people's courts shall support a request to confirm such a relationship if one of the following conditions is met:

1.The foreign national has obtained permanent residence status;

2.The foreign national has obtained a work permit and is legally residing in China;

3.The foreign national has completed other relevant procedures in accordance with state regulations.

Article 5 provides that duly established representative offices of foreign enterprises in China may participate as parties in labor dispute cases. If a party requests to add the foreign enterprise itself as a litigant, the court shall also grant support.

Interpretation by the Shanghai No. 2 Intermediate People's Court

The Shanghai No. 2 Intermediate People's Court has issued a detailed explanation of Articles 4 and 5, clarifying two major points:

1.Conditions for Foreign Nationals to Request Confirmation of an Employment Relationship

Under Chinese law, foreign nationals working in China (excluding diplomats and certain other special personnel) generally fall into two categories:

(1)Those holding a Foreigner's Permanent Residence Permit;

(2)Those holding valid work permits and residing lawfully in China.

Interpretation II expands on this by confirming three groups of foreigners who may seek recognition of an employment relationship:

(1)Permanent Residents: Holders of China's Foreigner's Permanent Residence Permit enjoy nearly the same rights and obligations as Chinese citizens, with limited exceptions. They may therefore lawfully request recognition of labor relations.

(2)Work Permit Holders: Foreigners holding a valid work permit and residence permit—such as the Foreigner's Employment Certificate or the newer Foreigner's Work Permit—are eligible to seek confirmation of employment relationships. Since April 1, 2017, China has implemented a unified work permit system, allowing foreigners with the requisite permits to apply for visas and residence documents.

(3)Others in Compliance with Regulations: Certain other foreigners who complete required procedures under Chinese regulations (for example, those specified in Articles 9 and 10 of the Regulations on the Administration of Employment of Foreigners in China) may also request confirmation of labor relations.

2.Litigation Status of Foreign Enterprises in Labor Disputes

Although representative offices of foreign enterprises in China generally lack independent legal personhood and cannot directly establish labor relations, Interpretation II provides that they may still act as parties in labor dispute cases. This ensures that facts can be properly examined and the rights of all parties protected. Additionally, courts shall support applications to add the foreign enterprise itself as a party to the case when requested.

For the full Chinese text of the regulations, please visit:

https://www.court.gov.cn/fabu/xiangqing/472691.html