How much is the penalty for providing an outsourced worker exceeding the duration of labor outsourcing in Vietnam?
What are the regulations on labor outsourcing in Vietnam?
Pursuant to Article 52 of the Labor Code 2019, regulations on labor outsourcing are specifically as follows:
Labor outsourcing
1. Labor outsourcing is an arrangement in which a worker enters into an employment contract with an outsourcing enterprise, which subsequently dispatches the worker to work for another employer (client enterprise) while maintaining labor relations with the outsourcing enterprise with which the employment contract is concluded.
2. Labor outsourcing is a conditional business, requires the labor outsourcing license and applies only to certain types of work.
Thus, labor subleasing is regulated as follows:
- Labor outsourcing is an arrangement in which a worker enters into an employment contract with an outsourcing enterprise.
- Labor outsourcing is a conditional business, requires the labor outsourcing license,
- Labor outsourcing applies only to certain types of work..
How much is the penalty for providing an outsourced worker exceeding the duration of labor outsourcing in Vietnam?
How long is the duration of labor outsourcing in Vietnam?
According to Article 53 of the Labor Code 2019, the labor outsourcing rules are specifically 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 maternal 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, the maximum duration of labor outsourcing is 12 months.
During these 12 months, the client enterprise must also have full obligations like an employer who has established a contract.
How much is the penalty for providing an outsourced worker exceeding the duration of labor outsourcing in Vietnam?
According to the provisions of Clause 6, Article 13 of Decree 12/2022/ND-CP on penalties for administrative violations against regulations on labour, social insurance, and Vietnamese guest workers.
Regulations on violations against regulations on labour outsourcing are as follows:
Violations against regulations on labour 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 labour 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 labour outsourcing license if not liable to criminal prosecution;
dd) Altering or falsifying the issued labour outsourcing license if not liable to criminal prosecution;
e) Forging the labour outsourcing license if not liable to criminal prosecution;
g) Forging any documents included in the application for issuance, renewal or re-issuance of the labour 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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Thus, if an employer providing an outsourced worker for a duration exceeding 12 months, he or she will be fined from 80,000,000 to 100,000,000 VND depending on the seriousness of the case.
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