Can outsourced workers keep labor outsourcing contracts in Vietnam?

1. Can outsourced workers keep labor outsourcing contracts in Vietnam?

Pursuant to Article 55 of the 2019 Labor Code, there are provisions on labor outsourcing contracts as follows:

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.

Thus, according to the above provisions, the labor outsourcing contract will be kept one copy by the outsourcing enterprise and the client enterprise, and there is no requirement to provide the contract to outsourced workers in Vietnam.

2. What are labor outsourcing rules in Vietnam?

Article 53 of the Labor Code 2019 stipulates labor outsourcing rules as follows:

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.

According to this Article, the labor outsourcing in Vietnam will be done according to the principles specified above.

3. What are rights and obligations of the outsourcing enterprise in Vietnam? 

According to Article 56 of the Labor Code 2019 rights and obligations of the outsourcing enterprise 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:

1. Provide an outsourced worker who meets the requirements of the client enterprise and the employment contract signed with the employee;

2. Inform the outsourced worker of the contents of the labor outsourcing contract;

3. Provide the client enterprise with the curriculum vitae of the outsourced worker, and his/her requirements.

4. 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;

5. Keep records of the number of outsourced workers, the client enterprise, submit periodic reports to the provincial labor authority.

6. Take disciplinary measures against the outsourced worker in cases where the client enterprise returns the employee for violations against labor regulations.

The above are rights and obligations of the outsourcing enterprise in Vietnam.

Best Regards!