I need to understand the rights of a holder of an employment permit and residence visa in China.?

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I need to understand the rights of a holder of an employment permit and residence visa in China.?
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I have been working for a newly established company in Shanghai for about six months now and because of budget problems they wanted to cut me back to part-time. I was not able to accept the companies offer so I was technically let go. Chinese labor law states that an employee must be given one months notice before being let go. If not the company needs to offer one months severance pay. Before paying me my salary for LAST month, they are now trying to force me to sign a contract which states that I must surrender my work and residence permits to them as well as surrender all rights to even speak to customers (some of which are my friends). Being a stranger in a strange land I need legal advice. What advice I have received so far is in my favor, but I need more help. Advice please!!!

Liuzhou Laowai

First of all, forget about your work visa. A Z-visa only allows you to enter China to take up employment. It must be changed into a residence permit within 30 days.

Your residence permit is the only one which matters. Unfortunately, the residence permit is technically conditional on you being employed by the same organisation.

Forget about Chinese labour law, too. It may be in your favour, but in practice the Chinese guy is always going to win.

Just walk away.

And take your passport with you. They have no right to take your passport which contains your residence permit.

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