Deposit withdrawal procedures for dispatching agency in Vietnam

According to Clause 4 Article 18 of the Decree No. 145/2020/NĐ-CP of Vietnam’s Government, deposit withdrawal procedures are specified as follows:

- The dispatching agency shall submit 01 application to the Department of Labor, War Invalids and Social Affairs of the province where it is headquartered;

- The Department of Labor, War Invalids and Social Affairs shall receive the application, issue a receipt note specifying the date of receipt; verify the application within 05 working days from the day on which adequate documents are received and submit it to the President of the People’s Committee of the province for decision;

- Within 05 working days from the receipt of the application from the Department of Labor, War Invalids and Social Affairs, the President of the People’s Committee of the province shall decide whether to issue the permission for deposit withdrawal and send it to the dispatching agency and the receiving bank. If the application is rejected, the President of the People’s Committee of the province shall send a written response to the dispatching agency specifying the reasons for rejecting;

- After the written permission is issued by the President of the People’s Committee of the province, the dispatching agency shall submit the application to the receiving bank;

- If the application is satisfactory, the receiving bank shall allow the dispatching agency to withdraw the deposit within 01 working day from the day on which the application is received.

In the 02 following cases of deposit withdrawal, the amounts and compensations to the dispatched employees shall be directly paid by the receiving bank under the plan approved by the President of the People’s Committee of the province after deducting banking fees:

- The dispatching agency is facing difficulties and is not financially capable of paying salaries, social insurance, health insurance, unemployment insurance, occupational accident and disease insurance premiums and provide other benefits for the dispatched employees under their employment contracts, collective bargaining agreement, rules and regulations of the dispatching agency after 30 days from the payment deadline as prescribed by law;

- The dispatching agency is facing difficulties and is not financially capable of paying compensation for breaching the employment contracts with the dispatched employees or for the damage to the dispatched employees due to the dispatching agency’s failure to ensure lawful rights and interests of the dispatched employees after 60 days from the deadline for paying compensation as prescribed by law;

View more details at the Decree No. 145/2020/NĐ-CP of Vietnam’s Government, effective from February 01, 2021.

Thuy Tram

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