Circular 21: Liquidation of Vietnamese guest worker contracts

Recently, the Ministry of Labor, War Invalids and Social Affairs of Vietnam issued Circular No. 21/2007/TT-BLDTBXH guiding the Law on Vietnamese Guest Workers and Decree No. 126/200/ND-CP detailing and guiding a number of articles of the Law on Vietnamese Guest Workers.

Specifically, Circular No. 21/2007/TT-BLDTBXH of the Ministry of Labor, War Invalids and Social Affairs of Vietnam stipulates: “A service enterprise has the right to unilaterally liquidate guest worker contracts if the workers or their lawfully authorized representatives fail to show up to liquidate those contracts after the enterprise has sent three written notices by registered mail to them within 180 days from the date the workers terminate labor contracts.”. The liquidation of guest worker contracts is specified as follows:

- The liquidation of guest worker contracts signed between a service enterprise or a non-business organization and workers must be recorded in writing;

- The document on liquidation of a contract must have the following contents: the reason for liquidation of the contract; the performance of liabilities by involved parties; the sums paid by the service enterprise or non-business organization and workers and other contents as agreed upon by the involved parties;

- If a service enterprise unilaterally liquidates a contract, the document on contract liquidation must have the following contents: the reason for unilateral liquidation of the contract; the performance of liabilities by involved parties; sums paid by the service enterprise and the worker, and compensations (if any) enclosed with documents evidencing the damage;

- The refund of workers' deposits upon liquidation of guest worker contracts complies with the guidance of the Ministry of Labor, War Invalids and Social Affairs and the State Bank of Vietnam;

- The liquidation of guarantee contracts upon liquidation of guest worker contracts complies with the guidance of the Ministry of Labor, War Invalids and Social Affairs and the Ministry of Justice.

View more details at Circular No. 21/2007/TT-BLDTBXH of the Ministry of Labor, War Invalids and Social Affairs of Vietnam, effective from November 07, 2007.

Ty Na

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE