Q: The law that protects employees in China has a rule on compensation if a fixed term contract is not renewed. I've heard that this rule only applies if you carry a Foreign Permanent Resident ID Card, and does not apply to normal 1-5 year holders of work visa. Is this correct?

A: If a foreign employee working legally at a company has a labor contract that is not renewed by the employer after it expires, they should receive economic compensation as stated in the contract.

If there is no agreement on compensation in the contract, the employer must follow the Labor Contract Law of the People's Republic of China, specifically Article 46 and 47.

Source: Shanghai Municipal Bureau of Human Resources and Social Security