Employment in China

Some US based workers compensation may be available for US employees “temporarily” outside of the country, but beyond that separate insurance must be obtained based on the laws of the specific country. In many countries, China included, the insurance of employee injury is reserved to state institutions, and cannot be provided by private insurers. Diligence should be applied to satisfying these requirements. No assumptions should be made. Injury to employees, especially where insurance is lacking, can lead to criminal prosecution in China.

The laws of China governing “Employment of Foreigners in China” call for regulation of foreign employees in China of any duration unless they are representatives of “permanent offices of foreign enterprises in China.” Further, you must be aware of how the law treats “independent contractors” or pseudo independent contractors. In other words, compliance is a complicated process. Additionally, a master policy should be purchased in the US supplementing the foreign coverage with Foreign Voluntary Compensation, Endemic Disease and Repatriation Expense.

If employees will be driving in China, care should be given with respect to complying with China’s compulsory insurance law, but at the same time, a master policy should be purchased in the US to be excess and to wrap around the local coverage. This is another area where criminal prosecution can result if due diligence is not applied.

Working side by side with you, we design and implement risk management programs which will protect your employees in China, and as a result protect your company.

in China are not as docile as we might at first think.
For a sense of this, see www.ChinaLaborWatch.org. Their mission is “the realization and defense of labor rights in China.”