Employing locals
What is the different between permanent workers,
contract workers and temporary workers in China?
Frankly speaking, the difference between contract workers and temporary workers is
not clear. Maybe you can just classify the latter two as employees who are employed by
signing an employment contract. There was a time that some employees will insist to become
contract workers because they dislike the word temporary and because only contract workers
can be promoted to permanent workers. However, at the current unemployment rate and the fact
that no company nowadays will offer permanent workers make it hard for employees to bargain.
Permanent workers are like civil servants in governmental organization. You probably do
not want iron rice bowl in your company. Hence, never hire permanent workers.
What is this record file thing?
Everyone in China is supposed to have a record file which basically records educational
and employment background.
Should a company keep the record files?
No. You are asking for administration problems. It also gives the employee a piece of
evident to argue that he is a permanent worker. Never.
What happens to an employee's file if you refuse to keep it?
Three possibilities: 1) His or her former unit or school destroy it. 2) Some organization keeps it for him or her for a yearly fee.
It is best that you leave it to him or her to find one because any
organization will blackmail you if they know this "rich fat" foreign
investor is actually paying for the file keeping. 3) He or she bring the files home.
This may be inappropriate under the Chinese laws.
What happens if his or her files are destroyed?
It is not your problem but if you care about it, the answer is he or she may not become
a permanent worker of a company or a civil servant. He or she cannot apply for professional
qualification.
Can a company employ anyone?
In theory, you can. However, the local labor department will like you to hire a locals.
If not, you are required to hire someone from the province. Some labor department charge
a fee either in the form of management fee or fee payable to a company linked to the labor
department who will provide "management" to these so-called "foreign" Chinese worker.
How can a company differentiate a locals from a "foreigner" from another province or city?
Just look at the address in the IC card.