Decree No. 29/2019/ND-CP detailing Clause 3, Article 54 of the Labor Code

DECREE

Detailing Clause 3, Article 54 of the Labor Code regarding licensing of labor lease, payment of deposits and the list of jobs for which labor may be leased^[1]

Pursuant to the June 19, 2015 Law on Organization of the Government;

Pursuant to the June 18, 2012 Labor Code;

Pursuant to the November 26, 2014 Investment Law;

Pursuant to the December 8, 2014 Law on Enterprises;

At the proposal of the Minister of Labor, Invalids and Social Affairs;

The Government promulgates the Decree detailing Clause 3, Article 54 of the Labor Code regarding licensing of labor lease, payment of deposits and the list of jobs for which labor may be leased,

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Decree provides conditions, competence, order and procedures for grant, extension, re-grant and revocation of labor lease licenses (below referred to as licenses), payment of deposits by labor leasing enterprises and the list of jobs for which labor may be leased as prescribed in Clause 3, Article 54 of the Labor Code.

Article 2. Subjects of application

1. Labor leasing enterprises.

2. Labor hiring parties.

3. Leased employees.

4. Other agencies, organizations and individuals related to labor lease.

Article 3. Interpretation of terms

In this Decree, the terms below are construed as follows:

1. Labor leasing enterprise means an enterprise that is established in accordance with the Law on Enterprises, possesses a license, recruits and signs labor contracts with employees, and does not directly use but leases them to another employer (below referred to as leasing enterprise).

2. Labor hiring party means an enterprise, agency, organization, cooperative, household or individual that has the need for employees for a given period and does not directly recruit employees but leases them from a leasing enterprise.

3. Leased employee means an employee that has the full civil act capacity, is recruited by, and signs a labor contract with, a leasing enterprise, and then works for and is subject to the management of a labor hiring party.

Article 4. Purposes of labor lease 

1. To temporarily meet an unexpected increase in the labor demand in a certain period of time.

2. To substitute employees who are on maternity leave, suffer labor accidents or occupational diseases, or have to perform citizens’ obligations.

3. To meet the demand for employees with high technical and professional qualifications.

Chapter II

CONDITIONS, COMPETENCE, ORDER AND PROCEDURES FOR GRANT, EXTENSION, RE-GRANT AND REVOCATION OF LICENSES

Article 5. Conditions for grant of a license

1. The at-law representative of a leasing enterprise must meet the following conditions:

a/ Being a manager of the enterprise;

b/ Having no criminal convictions;

c/ Having worked in the field of labor lease or labor supply for at least full 3 years (36 months) within 5 consecutive years preceding the year of application for a license.

2. The enterprise has paid a deposit of VND 2,000,000,000 (two billion Vietnam dong) at a commercial bank or a foreign bank branch lawfully established and operating in Vietnam.

Article 6. Competence for grant, extension, re-grant and revocation of licenses

Chairpersons of People’s Committees of provinces and centrally run cities (below collectively referred to as provincial-level People’s Committee chairpersons) are competence to grant, extend, re-grant and revoke licenses for enterprises headquartered in their localities.

Article 7. Licenses

1. A license shall be printed on cardboard paper of A4 size (21cm x 29.7cm); the front page is imprinted with the national emblem and inscribed with the contents of the license on white background with sky-blue patterns in a black border frame; the back page features the country name, national emblem and the phrase “LABOR LEASE LICENSE” on sky-blue background.

2. The contents of a license must comply with Form No. 1 in Appendix II to this Decree.

3. The validity duration of licenses is prescribed as follows:

a/ A license is valid for up to 60 months.

b/ A license may be extended many times; an extended license is valid for up to 60 month;

c/ The validity duration of a re-granted license equals the remaining validity duration of the previously granted one.

Article 8. Dossier of application for a license

1. The enterprise’s application for a license, made according to Form No. 02 in Appendix II to this Decree;

2. A copy of the enterprise registration certificate in accordance with law;

3. A curriculum vitae of the enterprise’s at-law representative, made according to Form No. 04 in Appendix II to this Decree;

4. The criminal record certificate No. 1 as prescribed by the regulations on criminal records of the enterprise’s at-law representative. In case the enterprise’s at-law representative is a foreigner who is not eligible for grant of Vietnam’s criminal record certificates; the criminal record certificate No. 1 shall be replaced by a criminal record certificate or written certification issued by a foreign authority that the foreign employee is neither a criminal nor examined for penal liability.

The above documents must be issued within 6 months before the date of dossier submission.

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