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Expat Sues Company that Refuses to Cancel Work Permit, Court Rules...
In a recent ruling that emphasizes the obligations of employers regarding foreign workers' rights in China, a football company in Zhuhai has been ordered by the Zhuhai Intermediate People's Court to cancel the work permit of its former employee and pay damages for hindering his employment opportunities.
The case involves Ruo, a Brazilian national who was employed as a football coach by the Zhuhai-based football company starting March 1, 2021. During his tenure, the company obtained a Foreigner's Work Permit for him. Upon the expiration of his employment contract, Ruo sought to join another company and requested his former employer to cancel his work permit—a request that was refused.
Ruo subsequently filed for labor arbitration, demanding that the football company cancel his work permit immediately and compensate him for the lost opportunity to commence work with a new employer.
The court found that according to the Regulations on the Employment Management of Foreigners in China, it is mandatory for employers to cancel the work permits of foreign nationals upon the termination or dissolution of their employment contracts. The football company's refusal to process the cancellation significantly affected Ruo's ability to establish a legal employment relationship with his new employer and receive his entitled compensation.
As a result, the court ordered the football company to process the cancellation immediately and compensate Ruo for his losses.
Source: Labor lawyer website of Shenzhen
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