Chapter V

Penalty Provisions

Article 28 Violation of theses Rules, i.e. foreigners who work without the Employment Permit or employers which hire foreigner without the Employment License, shall be handled by the public security organs in accordance with Article 44 of the Rules Governing the Implementation of the Law of the People's Republic of China on the Entry and Exit of Aliens.

Article 29 For Foreigner who refuse to have their Employment Permit inspected by the labor administrative authorities, change their employers and professions at will or extend their term of employment without permission, the labor administrative authorities shall withdraw their Employment Permit and recommend that their residence status be canceled by the public security organs. In case of deportation, the costs and expenses shall be borne by the said foreigners or their employers.

Article 30 For foreigners and employers who forge, alter, falsely use, transfer, buy and sell the Employment Permit and the Employment License, the labor administrative authorities shall take over the Employment Permit and the Employment License in question, confiscate the illegal proceeds and impose a fine between ten thousand and one hundred thousand RMB yuan. In serious cases which constitute a crime, their criminal responsibility of the perpetrators shall be looked into by the judicial authorities.

Article 31 In case of abuse of power, illegal collection of fees, and fraudulent practices on the part of official personnel of the Certificate Office or other departments, they shall be investigated in accordance with the law for their criminal responsibility if crimes are committed, or they shall be subject to administrative disciplinary measures if the cases do not constitute a crime.

Chapter VI

Supplementary Provisions

Article 32 The employment in the mainland of the residents of Taiwan, Hong Kong and Macao region of China shall follow the Rules for the Administration of the Employment in the Mainland of the Residents of Taiwan, Hong Kong and Macao.

Article 33 These Rules do not apply to the employment of foreigners in China's Taiwan, Hong Kong and Macao region.

Article 34 Individual economic organizations and private citizens are prohibited from employing foreigners.

Article 35 The labor administrative authorities of the provinces, autonomous regions and municipalities directly under the Central Government may formulate their own rules for implementation of these Rules in conjunction with the public security and relevant authorities in the locality, and report it to the Ministry of Labour, Ministry of Public Security, Ministry of Foreign Affairs and the Ministry of Foreign Trade and Economic Cooperation for putting on record.

Article 36 The Ministry of Labors shall be responsible for the interpretation of these Rules.

Article 37 These Rules shall enter into force as of 1 May 1996. The Provisions Concerning the Employment in China of the Foreigners Who Have Not Yet Obtained Residence Certificate and Foreigners Who Study in China jointly promulgated by the former Ministry of Labour and Personnel and the Ministry of Public Security on 5 October 1987 shall be annulled simultaneously.

Notice: In case of discrepancy, the original version in Chinese shall prevail.