No deposits, no ID retention, no “training loans”, no pyramid schemes, no usury

Employers cannot keep your ID or demand a deposit, nor can they charge you under any other pretext. If a job placement agency fails to find you a job, it must refund the placement fee. “Training loans” that require upfront fees, as well as pyramid schemes that pay out based on recruitment, are all officially recognized scams. Any interest on a loan exceeding four times the one-year LPR is not legally enforceable by courts, though the principal amount must still be repaid.

Cost

Zero expense. If an employer or agency suggests “pay first, then get a job”, “pay for training before placement”, or “recruit others to earn money”, refuse immediately. Keep all chat logs and proof of any payments. The difficulty lies in the fact that when money is scarce, people may be tempted to take risks — saying “no” on the spot is not easy.

Benefit

Employers are prohibited from withholding IDs or demanding guarantees or deposits. Violations result in mandatory refunds and fines ranging from 500 to 2,000 RMB per worker. Job placement agencies likewise cannot retain IDs or collect deposits; if they fail to place you, they must return all fees. Schemes that demand training fees or loans under the guise of employment are flagged by multiple government agencies as “training loan” scams. Pyramid schemes, where earnings depend on recruiting others, are illegal; participants face fines up to 2,000 RMB. Interest on private loans exceeding four times the one-year LPR is not legally binding. This regulation replaced the previous tiered limits of 24% and 36% (nationwide, effective August 2020).

Notes

The four-times-LPR threshold represents the maximum legally protected interest rate; it does not mean the principal can be forgiven. This judicial interpretation was revised in December 2020, so current article numbers may differ from earlier versions. For guidance on converting installment and online loan fees into annualized rates, see Section 5, Article 7. Financial desperation makes individuals especially vulnerable to these schemes; instead, rely on legitimate resources such as unemployment benefits, labor dispute mediation, legal aid, shelters, or emergency assistance outlined earlier in this section.

Sources · 6

1. 全国人大常委会 (2007). 劳动合同法（主席令第六十五号，第九、八十四条）. gov.cn/gongbao/content/2007/content_711013.htm
2. 劳动保障部 (2007). 就业服务与就业管理规定（劳动保障部令第 28 号，第十四、五十五、五十八条）. gov.cn/zhengce/2022-11/28/content_5711307.htm
3. 人力资源社会保障部等五部门 (2026). 警惕「招转培」「培训贷」等风险提示. chinajob.mohrss.gov.cn/h5/c/2026-05-18/543038…
4. 国务院 (2005). 禁止传销条例（国务院令第 444 号，第二、七、二十四条）. gov.cn/gongbao/content/2005/content_80604.htm
5. 最高人民法院 (2020). 关于修改《关于审理民间借贷案件适用法律若干问题的规定》的决定（法释〔2020〕6 号，第二十六条）. court.gov.cn/fabu/xiangqing/249031.html
6. 最高人民法院 (2020). 民间借贷利率司法保护上限调整为「一年期 LPR 的 4 倍」. court.gov.cn/zixun/xiangqing/249051.html