Vietnam: How much is the administrative penalty imposed upon a labor outsourcing enterprise for providing an outsourced worker for a duration exceeding 12 months?
What is the maximum duration of labor outsourcing for employees?
According to Article 53 of the 2019 Labor Code of Vietnam on the labor outsourcing rules as follows:
Labor outsourcing rules
1. The maximum duration of labor outsourcing is 12 months.
2. The client enterprise may employ an outsourced worker in the following cases:
a) The employment is necessary for the sharp increase in labor demand over a limited period of time;
b) The outsourced worker is meant to replace another employee who is taking maternity leave, has an occupational accident or occupational disease or has to fulfill his/her citizen’s duties;
c) The work requires highly skilled workers.
3. The client enterprise may not employ an outsourced worker in the following cases:
a) The outsourced worker is meant to replace another employee during a strike or settlement of labor disputes;
b) There is no agreement with the outsourcing enterprise on responsibility for compensation for the outsourced worker’s occupational accidents and occupational diseases;
c) The outsourced worker is meant to replace another employee who is dismissed due to changes in organizational structure, technology, economic reasons, full division, partial division, consolidation or merger of the enterprise.
4. The client enterprise must not dispatch an outsourced worker to another employer; must not employ an employee dispatched by an enterprise that does not have the labor outsourcing license.
Thus, according to the above regulations, the maximum duration of labor outsourcing is 12 months.
Vietnam: How much is the administrative penalty imposed upon a labor outsourcing enterprise for providing an outsourced worker for a duration exceeding 12 months? (Image from the Internet)
How much is the administrative penalty imposed upon a labor outsourcing enterprise for providing an outsourced worker for a duration exceeding 12 months?
Pursuant to the provisions of Article 13 of Decree No. 12/2022/ND-CP stipulating as follows:
Violations against regulations on labor outsourcing
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6. A fine ranging from VND 80.000.000 to VND 100.000.000 shall be imposed upon an outsourcing enterprise for commission of one of the following violations:
a) Letting other enterprises or entities use its labor outsourcing license to provide labor outsourcing services;
b) Providing outsourced workers to perform works which are not included in the list of permissible outsourced jobs;
c) Providing an outsourced worker for a duration exceeding 12 months;
d) Altering or falsifying any documents included in the application for issuance, renewal or re-issuance of the labor outsourcing license if not liable to criminal prosecution;
dd) Altering or falsifying the issued labor outsourcing license if not liable to criminal prosecution;
e) Forging the labor outsourcing license if not liable to criminal prosecution;
g) Forging any documents included in the application for issuance, renewal or re-issuance of the labor outsourcing license if not liable to criminal prosecution;
h) Failing to satisfy one of the licensing requirements set out in laws.
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8. Additional penalties:
a) The labor outsourcing license shall be suspended for a fixed period of 06 - 12 months if the violation in Point c Clause 6 of this Article is committed;
b) The exhibits and instrumentalities for committing the violation in Point e Clause 6 or Clause 7 of this Article, which are forged labor outsourcing licenses, shall be confiscated.
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Thus, a labor outsourcing enterprise providing an outsourced worker for a duration exceeding 12 months may be subject to an administrative fine of up to VND 100,000,000. In addition, the enterprise is also suspended from the labor outsourcing license for a fixed period of 06 - 12 months.
What are the rights and obligations of labor outsourcing enterprise in Vietnam?
According to the provisions of Article 56 of the 2019 Labor Code of Vietnam, the rights and obligations of the labor outsourcing enterprise in Vietnam are as follows:
Apart from the rights and obligations specified in Article 6 of this Labor Code, the outsourcing enterprise also has the following rights and obligations:
- Provide an outsourced worker who meets the requirements of the client enterprise and the employment contract signed with the employee;
- Inform the outsourced worker of the contents of the labor outsourcing contract;
- Provide the client enterprise with the curriculum vitae of the outsourced worker, and his/her requirements.
- Pay the outsourced worker a salary that is not lower than that of a directly hired employee of the client enterprise who has equal qualifications and performs the same or equal work;
- Keep records of the number of outsourced workers, the client enterprise, and submit periodic reports to the provincial labor authority.
- Take disciplinary measures against the outsourced worker in cases where the client enterprise returns the employee for violations against labor regulations.
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