Before going abroad to work, check whether the company has a license for international labor cooperation: it is illegal for them to demand a deposit from you.

14. Before going abroad to work, check whether the company has a license for international labor cooperation: it is illegal for them to demand a deposit from you.

Cost: No cost at all. Spend just a few minutes beforehand verifying the company’s credentials and reading through both contracts.

In plain terms: When it comes to working overseas, the law regulates not the workers themselves but the companies that arrange their employment. Only businesses holding a valid license for international labor cooperation and properly registered may recruit workers for foreign jobs. Any claim such as “first obtain a tourist visa and later switch to a work visa” is a clear sign of illegal activity. Moreover, employers are strictly prohibited from charging any kind of deposit or demanding collateral from workers.

Benefit: Article 5 of the Regulations on International Labor Cooperation states that companies must obtain approval from provincial or municipal commerce authorities before engaging in such activities; this approval results in a specific operating license. Article 7 mandates that the list of licensed firms be submitted to national authorities and shared with Chinese embassies and consulates abroad. Article 8 explicitly bans any entity from using business trips, tourism, or study abroad programs as a guise for labor export. Within five working days of registration, firms must deposit at least 3 million RMB into a designated fund intended to cover unpaid wages, service fees, and compensation for injuries or emergencies. This fund may also be tapped to repatriate workers in crisis situations. Articles 11, 12, and 13 forbid employment in gambling or adult entertainment venues, require mandatory pre-departure training, and mandate personal accident insurance coverage while abroad. Contracts must be signed separately with both foreign employers and workers; failure to do so renders any recruitment illegal. Article 25 reiterates the ban on deposits or property pledges. All agreements must be filed with commerce authorities within ten days, and companies must assist workers in securing compensation when contractual terms are violated. Article 31 allows authorities to halt recruitment to regions deemed unsafe, while Article 37 establishes a public registry of non-compliant firms. Unlicensed operators face severe penalties, including license revocation and criminal prosecution. Those misusing tourism or study visas for labor placement also incur heavy fines.

Evidence grade: A

Sources: State Council of China (2012). Regulations on the Administration of Foreign Labor Cooperation (State Council of China Order No. 620, Articles 5, 7, 8, 9, 10, 11, 12, 13, 21, 23, 25, 26, 29, 31, 37, 39, 40, 43). <https://www.gov.cn/zhengce/zhengceku/2012-06/11/content_1091.htm>

Notes: This entry outlines the lawful pathway for overseas employment. Legitimate procedures require the company to sign a labor cooperation agreement with a foreign employer, followed by a written service or employment contract with the worker detailing duties, pay, working hours, leave entitlements, social insurance, and safety measures. Within ten days, the firm must register these documents with authorities and provide language, safety, and cultural training. Personal accident insurance is mandatory. Red flags include refusal to show contracts, demands for deposits, or pressure to bypass proper paperwork. For information on high-paying overseas job scams and fraud hubs, see Section 21.5; safety advisories and contact details for the 12308 consular hotline are also listed there. The regulations impose no specific educational or age prerequisites on workers; eligibility hinges on both corporate licensing and host-country requirements. Contracts may only be concluded with approved foreign enterprises, never private individuals. The aforementioned financial reserve cannot be withdrawn by workers; it serves solely as a safety net for unpaid claims. Should problems arise, workers retain the right to file complaints with commerce authorities per Article 20. Projects sending more than 100 personnel to a single destination must also assign on-site supervisors and notify local embassies or consulates. Smaller groups lack such safeguards, so workers should retain all contracts and payment records as proof of their legal status.