Vietnamese Labor Code Updates June 2014

July 16, 2014

EMPLOYMENT SERVICES UNDER 2012 LABOR CODE

In order to guide the application of 2012 Labor Code (Labor Code No. 10/2012/QH13 issued by the National Assembly on June 18, 2012) on Enterprise Providing Employment Services (“EPES”), the Government issued Decree 52/2014/ND-CP on May 23, 2014 in order to detail the conditions, procedures, and authorities concerning the licensing of an EPES’s operations (“Decree 52”).

As set forth in Article 3 of Decree 52, an EPES will be an enterprise engaging in employment consulting and introduction for employers and employees, vocational training, and the collection, analysis, forecast and provision of information concerning the employment market (hereinafter referred to as “employment services”). According to Article 7 of Decree 52, in order to be involved in employment services, an EPES must meet following requirements:

  1. Headquarters: The EPES’s headquarters and branches, if any, are owned by its investor or leased from any third party for at least a 3-year term;
  2. Management system: The EPES’s management system has at least 03 staff members with at least college level education, clear profiles, and a full civil capacity; and
  3. Compulsory deposit: The EPES has made a mandatory deposit of at least VND 300 million in its main bank account in order to cover the risks and compensation costs of the EPES’s operations.

When all three requirements are fulfilled, the EPES must submit a dossier for issuance of an operational license. Under Article 11 of Decree 52, the dossier must include: (i) a request for issuance operation license, (ii) a copy of the EPES’s business registration certificate, (iii) confirmation of the compulsory deposit from the bank, and (iv) headquarters’ documents, such as: lawful documents relating to ownership, along with the lease agreement in the case that the headquarters is leased. Within 15 calendar days from the submission date of a complete dossier, the licensing authorities (i.e. provincial people’s committee, or provincial labor authority authorized by provincial people’s committee) will issue an operational license to the EPES. If the operational license has not been issued, the licensing authorities will respond to the EPES by way of issuing a document which will explain reasons for the refuse. The operational license of the EPES has maximum term of 05 years and is extendable.

Within 30 calendar days from the date of operation license, the EPES must publicize the EPES’s employment services (i.e. license, headquarters, business lines) via mass information device; and before 15 calendar days from the proposed operation date, the EPES must inform the licensing authorities about the proposed operation date, in writing. In addition, the EPES must post a copy of its operating license at its headquarters and branches (if any), and report periodically (6-month or annual report) to the provincial labor authority on the EPES’s operating status.

Decree 52 states that the compulsory deposit will be returned, after the resolution of all of the EPES’s outstanding financial obligations, provided there is a document from the licensing authorities confirming that:

  1. the EPES is not licensed to engage in employment services, or has not been re-issued or granted an extended operational license;
  2. the EPES’s license (i.e. operational license and/or business registration certificate) is withdrawn; or
  3. the EPES is subject to risks or compensations during its ordinary business course, and these risks/compensations have been paid in full.

The bank will not return the compulsory deposit if it has not received a written confirmation of one of these items from the licensing authorities.

Unlike a labor outsourcing enterprise, the EPES is really an intermediate party involving in employment consulting and introduction. It provides employment services only in accordance with its customers’ employment demands, and the employees recruited by employers will be managed and paid by such employers.

In conclusion, Decree 52 contains detailed regulations for establishment and operation of an Enterprise Providing Employment Services. In our viewpoint, this Decree facilitates the EPES to operate more advantageously and effectively.



DỊCH VỤ VIỆC LÀM THEO BỘ LUẬT LAO ĐỘNG NĂM 2012

Nhằm cụ thể hóa quy định về các doanh nghiệp hoạt động việc làm theo Bộ luật lao động 2012 (“Doanh nghiệp Dịch vụ Việc làm”), vào ngày 23/5/2014, Chính Phủ đã ban hành Nghị Định 52/2014/NĐ-CP về điều kiện, thủ tục cấp giấy phép hoạt động dịch vụ việc làm của Doanh Nghiệp Dịch Vụ Việc Làm (“Nghị Định 52”).

Ngoài việc đăng ký kinh doanh theo quy định pháp luật, để được cấp giấy phép hoạt động dịch vụ việc làm, Doanh Nghiệp Dịch Vụ Việc Làm phải đáp ứng các điều kiện như sau:

  1. địa điểm đặt trụ sở, chi nhánh: phải thuộc sở hữu người đứng tên doanh nghiệp hoặc được thuê với thời hạn từ 36 tháng trở lên;
  2. bộ máy chuyên trách: ít nhất 03 nhân viên có trình độ cao đẳng trở lên, có năng lực hành vi dân sự đầy đủ và lý lịch rõ ràng; và
  3. khoản ký quỹ bắt buộc: 300 triệu đồng Việt Nam để giải quyết các rủi ro và các khoản đền bù có thể xảy ra trong quá trình hoạt động của Doanh Nghiệp Dịch Vụ Việc Làm,

Ngoài ra, Nghị Định 52 còn quy định phạm vi hoạt động, quyền hạn, và trách nhiệm của Doanh Nghiệp Dịch Vụ Việc Làm.

Nhìn chung, Nghị Định này tạo điều kiện cho các Doanh Nghiệp Dịch Vụ Việc Làm hoạt động một cách thuận lợi và hiệu quả hơn trong thực tế.

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From Russin & Vecchi, LLC Vietnam