Enterprises operating employment services in Vietnam without a license can be fined up to 60 million VND?
What areas does the employment service cover?
Pursuant to Article 36 of the Employment Law 2013 stipulates as follows:
“Article 36. Employment services
1. Employment services include: counseling, job introduction; supply and recruit labor at the request of the employer; Collect and provide information on the labor market.
2. Employment service organizations include employment service centers and employment service enterprises.”
Accordingly, employment services in Vietnam include services such as counseling and job placement; supply and recruit labor on demand; Collect and provide information on the labor market.
Enterprises operating employment services without a license can be fined up to 60 million VND? (Image source: Internet)
Can non-state enterprises operate in the field of employment services in Vietnam?
Pursuant to Article 39 of the Employment Law 2013 stipulates as follows:
“Article 39. Employment service enterprises
1. Employment service enterprise means an enterprise established and operating in accordance with the law on enterprises and must have a license to provide employment services issued by the state management agency in charge of employment. province level.
2. An enterprise shall be granted a license to provide employment services when fully meeting the conditions for facilities, equipment, human resources and deposit.
3. Employment service enterprises may establish employment service branches.
4. Employment service enterprises may collect fees in accordance with the law on fees and charges.
5. The Government shall detail this Article.”
Accordingly, non-state enterprises can still operate in the field of employment services in Vietnam provided that they have a license to provide employment services issued by the provincial state management agency in charge of employment.
How will the business be administratively sanctioned?
Pursuant to Article 7 of Decree 12/2022/ND-CP stipulating as follows:
“Article 7. Violations against regulations on employment services
1. A fine of between VND 500,000 and VND 1,000,000 shall be imposed on an employment service enterprise that commits one of the following acts:
a) Notify employment service activities not as prescribed by law;
b) Failing to publicly post a certified copy of the original license or decision to revoke the license at the enterprise's head office;
c) Failing to monitor the employment status of employees introduced or supplied by the enterprise for at least 3 months or during the performance of the labor contract in the case of labor contracts of less than 3 months.
2. A fine of between VND 1,000,000 and 3,000,000 shall be imposed on employment service enterprises that commit one of the following acts:
a) Failing to report on employment service activities as prescribed;
b) Failure to establish or update or manage the data of employees registered for job counseling and introduction and employers registering for labor recruitment; do not connect or share when required by a competent state agency;
c) Failing to establish or publicly post the prices of employment services for employees at the enterprise's headquarters as prescribed by law.
3. A fine ranging from VND 10,000,000 to VND 20,000,000 shall be imposed on an employment service organization that commits acts of giving false or misleading information about the employment position.
4. A fine ranging from VND 45,000,000 to VND 60,000,000 shall be imposed for performing employment service activities that are not legally established employment service centers or without an employment service operation license. issued by a competent authority or using an expired employment service license.
5. A fine ranging from VND 80,000,000 to VND 100,000,000 shall be imposed on an employment service enterprise that commits one of the following acts:
a) Allow other enterprises, organizations and individuals to use the license;
b) Correcting or falsifying documents and documents in the application file for issuance, extension or re-grant of employment service operation licenses but not to the extent of criminal prosecution;
c) Correcting or falsifying the contents of the License to provide employment services that have been issued but not to the extent of criminal prosecution;
d) Forging documents and documents in the application file for issuance, extension or re-grant of employment service operation license but not to the extent of criminal prosecution;
dd) Forging employment service operation license but not to the extent of criminal prosecution;
e) Failing to meet one of the licensing conditions as prescribed by law.
6. A fine ranging from VND 40,000,000 to VND 50,000,000 shall be imposed for forging employment service operation licenses but not up to the level of criminal prosecution.
7. Additional sanctions
Confiscate exhibits and means of administrative violations that are forged employment service operation licenses, for violations specified at Point dd, Clause 5, and Clause 6 of this Article.
8. Remedial measures
a) Forcibly return to individuals and organizations using employment services the money collected from individuals or organizations using employment services and the interest of this amount calculated at the interest rate on demand deposits; the highest limit announced by the state commercial banks at the time of sanctioning for violations specified in Clause 4 of this Article;
b) Forcing the return of the license of the employment service enterprise to the competent authority that has granted it, for the violations specified at Point c, Clause 5 of this Article.”
Accordingly, acts of operating in the field of employment services in Vietnam without a license issued by a competent authority will be subject to an administrative fine of between VND 45 million and VND 60 million.
In addition to being administratively sanctioned, organizations and individuals that violate the employment service license will also have to take remedial measures according to the above provisions.
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