According to Regulations on the administration of employment of foreigners in China ,below are some important bullet points to take note of in regards to Shanghai expat labor rules when preparing your employee labor contracts.
Article 18 - Any working relationship needs to have a legal working contract. The term of the working contract shall be no longer than 5 years. When the contract ends, both parties have the option of renewing with another labor contrac
Article 19 - If both parties decide to renew with another labor contract, the terms should be finalized 30 days before the original working contract ending so that the new work permit may processing may begin on time
Article 20 - When leaving or switching employers, foreign individuals should cancel their residence permits at the local entry exit bureau within 10 days.
Article 22 - Local minimum wage guidelines apply to foreign workers as well
Article 23 - Expat employees are subject to the same working hour, holiday, safety, and social security laws
Article 24 - Expats can only work for the employer stated on the work permit. When switching employers, expats must receive a release letter and work permit cancelation from the previous employer. If the expat is switching to new industry or job role, they no longer qualifies to switch work permits; instead they must apply as a new work permit applicant.
Article 25 - If expat breaks the law and loses the right to live in China, employers should end working relationship with expat, and follow work permit cancelation guidelines.
Article 26 - When there are any labor disputes, conflicts should be resolved according to the “People's Republic of China Labor Law” and “People’s Republic of China Labor Dispute Mediation and Arbitration Law”
Article 27 - Labor bureau will audit employing company annually. Work permit renewals should begin at least 30 days ahead of time, if started after the 30 days, then the employee will be considered a new work permit applicant instead of renewal. If work permit is lost, replacement should be applied for immediately.