Vietnam: Dispatching agencies may withdraw the deposit in the following 05 cases

Recently, the Government of Vietnam has issued the Decree No. 145/2020/NĐ-CP guilding the Labor Code of Vietnam on working conditions and labor relations, issued on December 14, 2020.

Doanh nghiệp cho thuê lại lao động ký quỹ và nộp tiền ký quỹ như thế nào?

According to Clause 1 Article 18 of the Decree No. 145/2020/NĐ-CP of Vietnam’s Government, the President of the People’s Committee of the province where the dispatching agency is headquartered will permit the dispatching agency in the following cases:

- 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;

- The dispatching agency is not licensed;

- The dispatching agency has its licensed revoked or cannot have its license renewed or reissued;

- The dispatching agency has paid deposit at another Vietnamese commercial bank or foreign bank branch.

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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