Vietnam: Shall the client enterprise be fined when failing to inform and guide the internal labor regulations for outsourced workers?

Main Content

• What are the rights and obligations of outsourced workers in Vietnam?
• Does the client enterprise have to inform internal labor regulations for outsourced workers in Vietnam?
• Shall the client enterprise be fined when failing to inform and guide the internal labor regulations for outsourced workers in Vietnam?

What are the rights and obligations of outsourced workers in Vietnam?

According to Article 58 of the Labor Code 2019 on the rights and obligations of outsourced workers, apart from the rights and obligations specified in Article 5 of this Labor Code, the outsourced worker also has the following rights and obligations:

- Perform the work in accordance with the employment contract with the outsourcing enterprise;

- Obey internal labor regulations, lawful management, administration and supervision by the client enterprise;

- Receive a salary which 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;

- File a complaint with the dispatch enterprise in case the client enterprise violates agreements in the labor outsourcing contract.

- Negotiate termination of the employment contract with the outsourcing enterprise in order to conclude an employment contract with the client enterprise.

Does the client enterprise have to inform internal labor regulations for outsourced workers in Vietnam?

According to Article 57 of the Labor Code 2019, the rights and obligations of the client enterprise are 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 enterprise must inform and guide the outsourced worker to understand its internal labor regulations and other regulations.

Shall the client enterprise be fined when failing to inform and guide the internal labor regulations for outsourced workers in Vietnam?

Pursuant to Clause 1, Article 13 of Decree No. 12/2022/ND-CP stipulating the penalties for violations against regulations on labor outsourcing as follows:

Violations against regulations on labour outsourcing

1. A fine ranging from VND 3.000.000 to VND 5.000.000 shall be imposed upon an enterprise that uses outsourced workers (hereinafter referred to as “client enterprise”) for commission of one of the following violations:

a) Failing to inform or guide outsourced workers to understand its internal labour regulations, dangerous or harmful elements, occupational safety and health measures or other regulations;

b) Failing to organize training in occupational safety and health for outsourced workers in accordance with regulations of law;

c) Failing to provide first aid or emergency care to outsourced workers suffering from occupational accidents; failing to report or investigate occupational accidents or technical incidents threatening occupational safety and health suffered by outsourced workers in accordance with regulations of law;

d) Discriminating between the outsourced workers and its directly hired employees in respect of the working conditions.

Note: according to Clause 1, Article 6 of Decree No. 12/2022/ND-CP, the above-mentioned fines are fines for individuals. The fine imposed upon an organization is twice as much as that imposed upon an individual for committing the same administrative violation.

Thus, if the client enterprise fails to inform outsourced workers about its internal labor regulations, it may face an administrative violation with a fine ranging from 6 to 10 million VND. (the penalty for the organization).

Here is some information on labor outsourcing, penalties for failure to inform outsourced workers about internal labor regulations that we provide to you. Best regards!