Conditions for working employment service in Vietnam
Employment service is one of the supporting industries that attracts a lot of attention from foreign investors. So how do Decree 23/2021/ND-CP and Decree 31/2021/ND-CP come into being with regulations on conditions for working employment service with foreign investors? Let us clarify in this article.
Firstly, what activities does employment services include?
According to the provisions of Article 36 of the Employment Law 2013, employment services include consulting and job placement activities; supply and recruit labor at the request of the employer; Collect and provide information on the labor market.
Thus, it can be understood that employment service is a service activity of an organization that has the function of providing and introducing jobs in order to create a product or service, whereby the service provider carries out recruitment and training activities according to the needs, conditions and standards of the client being the employer. The result of employment products and services is that employees find a suitable working position, and the employer finds a suitable person in charge of the job they need to recruit. Employment service organizations include employment service centers and employment service businesses. Foreign investors doing business in the field of employment services must establish an enterprise.
Secondly, conditions for working employment service
Enterprises of foreign investors in Vietnam providing employment services must be granted employment service licenses. Article 14 of Decree 23/2021/ND-CP stipulates the conditions for being granted a license to provide employment services, including:
Conditions on location
Location of the head office or branch to organize employment service activities must be owned by the enterprise or leased stably by the enterprise under a contract of 03 years (36 months) or more.
Conditions on deposit
Enterprises performing employment service activities must make a deposit of VND 300,000,000 at a Vietnamese commercial bank or a foreign bank branch lawfully established and operating in Vietnam.
Conditions for the legal representative of the enterprise
The legal representative of the employment service enterprise must ensure:
• Being an enterprise manager in accordance with the Law on Enterprises;
• Not falling into one of the following cases: being examined for penal liability, being detained, serving prison sentences, serving administrative handling measures at compulsory detoxification establishments, educational institutions Compulsory, fleeing, restricted or incapacitated for civil acts, having difficulties in cognition or behavior control, being banned by the Court from holding certain posts, practicing professions or doing related jobs. regarding employment services;
• Having a university degree or higher or having worked directly as a professional or in managing employment or labor supply services for full 02 years (24 months) or more within 05 consecutive years before license application.
The job service market currently has many large foreign-invested recruitment companies, such as Manpower Vietnam, J-Job, NIC, Talentnet, etc.
Thirdly, restrictions on activities of sending workers to work abroad under contracts of foreign-invested enterprises in Vietnam.
The service of recruiting workers to work abroad under contracts is an industry on the list of industries and trades not yet accessible to the market for foreign investors promulgated together with Decree 31/2021/ND- CP. In Article 8 of the Law on Vietnamese workers going to work abroad under contract in 2020 (effective from January 1, 2022), it stipulates: “Service activities to send Vietnamese workers to work abroad Outside of the contract are conditional business lines and investment lines and can only be performed by Vietnamese enterprises that have a license to operate the service of sending Vietnamese workers to work abroad under a contract issued by the Minister of Labor, War Invalids and Social Affairs”.
Thus, the current Vietnamese law does not allow foreign investors to provide the service of sending workers to work abroad. Currently, this service is still considered a service that needs to be strictly controlled, in order to avoid risks for workers when working abroad. Therefore, businesses providing this service must ensure strict conditions as prescribed by law and foreign investors are still not allowed to invest in this industry.
Foreign investors have questions about regulations related to business conditions with foreign investors or need to learn and update new points of labor law, investment law or have any other needs. For any other legal advice, please contact us immediately: