To Sublease Labor, Enterprises Must Meet These Conditions

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Pursuant to Article 5 of Decree 29/2019/ND-CP, in order to obtain a Labor Sublease Permit, the subleasing enterprise must meet the following conditions:

Conditions on the escrow deposit:

The enterprise must ensure a deposit of VND 2,000,000,000 at a commercial bank or a branch of a foreign bank established and operating legally in Vietnam.

Conditions for the legal representative of the enterprise carrying out labor subleasing activities:

- Must be a manager of the enterprise;

- No criminal record;

- Has worked in the labor subleasing or labor supply field for at least 3 years (36 months) within the 5 consecutive years prior to applying for the permit.

To obtain a Labor Sublease Permit, the subleasing enterprise must simultaneously meet both the conditions on the escrow deposit and the legal representative of the enterprise. The Chairman of the Provincial People's Committee will not issue a permit to enterprises in the following cases:

- Failure to meet the conditions on the escrow deposit and legal representative as prescribed above;

- Used a fake permit to conduct labor subleasing activities;

- The legal representative has formerly been the legal representative of an enterprise whose labor subleasing permit has been revoked in accordance with points d, dd, e, and g, Clause 1, Article 12 of Decree 29 for the 5 consecutive years prior to applying for the labor subleasing permit;

- The legal representative has previously been the legal representative of an enterprise that used a fake permit.

According to Decree 29, there are currently a total of 20 jobs allowed for labor subleasing. For detailed information on these jobs, see HERE.

Note, in the following cases, enterprises are not allowed to sublease labor:

- The subleasing enterprise or the subleased party is involved in a labor dispute, strike, or subleasing labor to replace workers exercising their right to strike or resolving labor disputes;

- The subleasing enterprise does not specifically agree on compensation responsibility for occupational accidents, occupational diseases of the leased workers with the subleased party;

- Without the consent of the leased workers;

- Replacing workers who have been dismissed due to structural changes, technology, or mergers, consolidation, division, or separation of enterprises for economic reasons.

Nguyen Trinh

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