Ordinance of the Ministry of Labour and Social Security and
the State Administration for Industry and Commerce
(Ordinance No. 14 issued on October 9, 2001)
Approved on the 7th Ministerial Meeting of the Ministry of Labour and Social
Security on May 8, 2001, and consulted with and approved by the Ministry of Foreign
Trade and Economic Cooperation, this Provisional Regulation on the Establishment
and Administration of Job Referral Agencies of Chinese-Foreign Joint Ventures and
Cooperatives is now promulgated. It shall come into effect on December 1, 2001.
Minister of Labour and Social Security
Zhang Zuoji (SignatureStamp)
Minister of the State Administration for Industry and Commerce
Wang Zhonghou (Signature Stamp)
Provisional Regulation on the Establishment and Administration of Job Referral
Agencies of Chinese-Foreign Joint Ventures and Cooperatives
[Article 1] Whereas it is imperative to well regulate the establishment of job referral
agencies, to protect the legal rights of job-seekers and employing organizations, this
Regulation is promulgated in accordance with related provisions of the Labour Law of
China, Chinese-Foreign Enterprise Joint Venture Law of China and the
Chinese-Foreign Cooperative Enterprise Law of China.
[Article 2] The establishment of job referral agencies of Chinese-Foreign joint
ventures and cooperatives shall follow the provisions of this Regulation.
[Article 3] The government labour and social security departments, the government
foreign trade and economic cooperation departments, and the government
administration offices industry and commerce are charged, under their division of
duties, with the approving, registering, administering and supervising job referral
agencies of Chinese-Foreign joint ventures and cooperatives.
The opening of job referral agencies of Chinese-Foreign joint ventures and
cooperatives has to be approved by Provincial-level government labour and social
security department (hereinafter referred as Provincial Labour and Social Security
Department) and Provincial-level government foreign trade and economic cooperation
department (hereinafter referred as Provincial Foreign Trade Department). The
applying agencies shall then register with a local government administration office for
industry and commerce at the same geographical area where these applying agencies
are located.
Foreign self-funded job referral service agencies are disallowed.
The business residential and representative offices of foreign enterprises and foreign
business associations founded in China are not allowed in providing job referral
services in China.
[Article 4] Job referral agencies of Chinese-Foreign joint ventures and cooperatives
should operate under legal provisions, and their legitimate business activities are
protected by Chinese laws.
[Article 5] Job referral agencies of Chinese-Foreign joint ventures and cooperatives
are allowed to carry out the following business activities:
i. i. Provide job referral service to Chinese and foreign job-seekers and
enterprises;
ii. ii. Provide employment guidance and counseling service;
iii. iii. Collect and disseminate labour market information;
iv. iv. Hold job fairs with the approval of Provincial Labour and
Social Security Departments or their authorized prefecture-level labour
and social security departments; and
v. v.Provide other services approved by Provincial Labour and Social
Security Departments or their authorized prefecture-level labour and
social security departments.
Concerning job referral service to Chinese citizens to work overseas and the
recruitment of Chinese employees in representative offices of foreign enterprises
should follow the provisions of state regulations.
[Article 6] To apply for opening job referral service agencies of Chinese-Foreign joint
ventures and cooperatives, the applicant agencies should meet the following criteria
and go through the procedures stipulated in the articles 7-10:
i. i. The applicant foreign investing parties to job referral agencies of
Chinese-Foreign joint ventures and cooperatives should be legal entities in
the field of job referral services, having employment service experience in the
country where they are registered, and enjoying good reputation in the field
of employment service;
ii. ii. The applicant Chinese investing parties to job referral agencies of
Chinese-Foreign joint ventures and cooperatives should also be legal entities
in the field of job referral services, and they should also enjoy good
reputation in the field of employment services; and
iii. iii. The potential job referral agencies of Chinese-Foreign joint ventures
and cooperatives should be in possession of no less than 300,000 USD of
registration capital. There have to be over 3 professionals who are qualified in
job referral occupation. These agencies should have clearly identified scope
of business, business code and management rules. They should also have
office rooms and business facilities suitable for carrying out their business
activities. Major business managers should have experience in the field of
employment service.
[Article 7] To set up job referral agencies of Chinese-Foreign joint ventures and
cooperatives, application should be submitted to the Provincial Foreign Trade
Department where the potential job referral agencies are located, along with other
relevant documents needed for setting up such agencies.
Upon receiving such applications, Provincial Foreign Trade Departments should pass
on the following documents to Provincial Labour and Social Security Departments:
i. i. Business registration certificates of both Chinese and Foreign parties
(photocopies);
ii. ii. Qualification certificates and CVs of major business managers
(photocopies);
iii. iii. The CVs and occupational qualification certificates of professionals
of the potential job agency;
iv. iv. Office area utilization certificate;
v. v. Proposed business scope document;
vi. vi. Other documents required by laws and regulations.
[Article 8] Upon receiving the application documents listed in Article 7, the
Provincial Labour and Social Security Department should make the response within
15 days. Should the proposed agency meet the criteria, the Provincial Labour and
Social Security Department shall give its no-objection document. If the proposed
agency does not fully meet the criteria, the Provincial Labour and Social Security
Department should return the application documents to Provincial Foreign Trade
Department with explanations.
[Article 9] Upon receiving the no-objection document from the Provincial Labour
and Social Security Department on a case of applying for establishing job referral
agency of Chinese-Foreign joint ventures and cooperatives, the Provincial Foreign
Trade Department shall make its approval or disapproval decision within 30 days. If
approved, the approval certificate shall be provided to the applicants; otherwise the
applicants should be informed.
[Article 10] Upon receiving the certificate of approval for opening job referral agency
of Chinese-Foreign joint ventures and cooperatives, registration has to be made with
local Administration for Industry and Commerce, authorized by the State
Administration for Industry and Commerce, at the place where the proposed job
referral agency is located. Within 10 days of registration, the job referral agency
should file a record with Provincial Labour and Social Security Department or its
authorized prefecture-level labour and social security agencies.
[Article 11] Any change of investing parties, stock share composition or setting up
branches should seek the consent of the original approving departments. Upon such
consent and approval, the job referral agency shall renew its registration with the
agency of Administration for Industry and Commerce, and then file a record with
Labour and Social Security department.
[Article 12] The administration of job referral agencies of Chinese-Foreign joint
ventures and cooperatives shall follow the Rules of Labour Market Administration
and other regulations on foreign funded enterprises.
[Article 13] For investors from Hongkong Special Administrative Region, Macao
Special Administrative Region and Taiwan who intend to set up job referral agency of
joint ventures and cooperatives, this Regulation shall apply as well.
[Article 14] This Regulation becomes effective on December 1, 2001.
