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Chinese programmer ordered to pay 1m yuan for using virtual private network
(www.theguardian.com)
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this post was submitted on 10 Oct 2023
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No, that alone doesn't break any employment or tax laws in most countries. You just have to declare it properly and pay your taxes. And the employer has to follow local employment laws as if it were a local company. But that just means following the maximum allowed working hours, mandatory holidays, minimum wage, etc.
China is one of the few countries that might have an issue with people working for foreign companies in general.