Beijing authorities recently disclosed a case involving a foreign national—referred to as "M"—who secured an open-ended employment contract with a Chinese technology firm. M has held a Foreign Permanent Resident ID Card, commonly known as a “Chinese green card,” since beginning work at the company in 2015. Recognized for his diligence and professional competence, M earned the respect of both colleagues and management.
As his tenure progressed, M requested an open-ended (no fixed term) labor contract to enhance job security. The company, however, was uncertain whether Chinese law permitted such an arrangement for a foreigner—even one holding a green card. Citing his long-term service and compliance with statutory conditions, M argued he was legally entitled to the contract. With the company reluctant to proceed due to legal ambiguities, M filed for labor arbitration, seeking formal recognition of his employment as open-ended.
Resolution Through Arbitration
After reviewing the case, the arbitration committee clarified the applicable legal standards. Through mediation, the dispute was resolved, and the employer agreed to sign an open-ended contract with M.
Legal Framework
Under China’s Regulations on the Administration of Permanent Residence of Foreigners, green card holders are generally granted the same rights and obligations as Chinese citizens, except for political and other rights expressly limited by law.
In employment matters, foreign permanent residents are exempt from work permit requirements and fall under the protections of the Labor Contract Law of the People’s Republic of China. Article 14 of this law mandates that employers must offer an open-ended contract under certain conditions—such as when an employee has worked continuously for the same employer for ten years or more.
As green card holders are entitled to equal labor rights, they may also request open-ended contracts when these legal conditions are satisfied.
