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More than 400 overseas workers were holding a job in Shanghai without a work permit, a citywide labor inspection campaign found.

Starting from July 7, the Shanghai Labor and Social Security Bureau checked whether more than 1,900 employers acquired work permits for overseas employees including those from Hong Kong, Macau and Taiwan.

More than 200 companies failed to comply with the regulation, which involves 22 foreigners and another 400 overseas Chinese professionals.

Violators were ordered to complete proper documentation before this weekend. Employers that fail to do so will face fines ranging from 5,000 yuan (US$625) to 50,000 yuan.

Lu Tingfei with the inspection team, said most cases could be attributed to both companies and individuals not understanding the law properly.

In one case, an art company hired an American-Chinese without applying for a work permit. The Taiwan Province native has lived in Shanghai with her husband, who has a valid work permit, for many years. She started working at the art company about two months ago.

"In most cases, it's the employers' fault for not acquiring a work permit for overseas staff," Lu said. "But there are also uncooperative individuals who don't want to take the time to apply."

He said some overseas workers on short-term contracts consider it troublesome to apply and get a medical check, which is required when applying for a work permit.

Labor officials warned that foreigners would be forced to leave the country if they fail to get a work permit.

Shanghai has issued 92,000 work permits to foreigners from 152 countries through the end of June since the policy was launched in 1998.

(Shanghai Daily August 23, 2006)