What are the cases where client enterprises in Vietnam may not employ outsourced workers? What are the contents of labor outsourcing contracts?

What are the cases where client enterprises in Vietnam may not employ outsourced workers? What are the contents of labor outsourcing contracts? T.P - Ha Nam.

What are the cases where client enterprises in Vietnam may not employ outsourced workers?

In Clause 3, Article 53 of the 2019 Labor Code, there are 03 cases in which the client enterprise may not employ an outsourced worker, including:

- The outsourced worker is meant to replace another employee during a strike or settlement of labor disputes;

- There is no agreement with the outsourcing enterprise on responsibility for compensation for the outsourced worker’s occupational accidents and occupational diseases;

- 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.

What are the cases where client enterprises in Vietnam may not employ outsourced workers? What are the contents of labor outsourcing contracts?

What is the maximum duration of labor outsourcing in Vietnam?

In Clause 1, Article 53 of the 2019 Labor Code, the principles of labor subleasing are prescribed 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 01 year.

What are the cases where client enterprises in Vietnam have the right to return the outsourced worker?

In Article 57 of the 2019 Labor Code, there are regulations on the rights and obligations of the client enterprise as follows:

Rights and obligations of the client enterprise
1. Inform and guide the outsourced worker to understand its internal labor regulations and other regulations.
2. Do not discriminate between the outsourced worker and its directly hired employees in respect of the working conditions.
3. Reach an agreement with the outsourced worker on night work and overtime work in accordance with this Labor Code.
4. The client enterprise may negotiate with the outsourced worker and the dispatch enterprise on official employment of the outsourced worker while the employment contract between the dispatch employee and the dispatch enterprise is still unexpired.
5. Return the outsourced worker who does not meet the agreed conditions or violates the work regulations to the dispatch enterprise.
6. Provide evidence of violations against work regulations by the outsourced worker to the outsourcing enterprise for disciplinary measures.

Thus, the client enterprises in Vietnam have the right to return the outsourced worker in the following cases:

- Outsourced worker does not meet the agreed conditions

- Outsourced worker violates the work regulations to the dispatch enterprise.

What are the contents of labor outsourcing contracts in Vietnam?

In Clause 2, Article 55 of the 2019 Labor Code, there are provisions as follows:

Labor outsourcing contracts
1. The outsourcing enterprise and the client enterprise shall conclude a written labor outsourcing contract, which is made into 02 copies, each of which shall be kept by a party.
2. A labor outsourcing contract shall have the following major contents:
a) The work location, the vacancy which will be filled by the outsourced worker, detailed description of the work, and detailed requirements for the outsourced worker;
b) The labor outsourcing duration; the starting date of the dispatch period;
c) Working hours, rest periods, occupational safety and health at the workplace;
d) Responsibility for compensation in case of occupational accidents and occupational diseases;
dd) Obligations of each party to the outsourced worker.
3. The labor outsourcing contract shall not include any agreement on the rights and benefits of employee which are less favorable than those stipulated in the concluded employment contract between the employee and the outsourcing enterprise.

Accordingly, a labor outsourcing contract shall have the following major contents:

- The work location, the vacancy which will be filled by the outsourced worker, detailed description of the work, and detailed requirements for the outsourced worker;

- The labor outsourcing duration; the starting date of the dispatch period;

- Working hours, rest periods, occupational safety and health at the workplace;

- Responsibility for compensation in case of occupational accidents and occupational diseases;

- Obligations of each party to the outsourced worker.

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