Vietnam: How does the dispatching agency make a deposit and pay the deposit?

According to the Decree No. 145/2020/NĐ-CP of Vietnam’s Government, deposits and payment of deposits are prescribed as follows:

1. Payment and use of deposits

- Enterprises shall pay the deposits specified in Clause 2 Article 21 of this Decree at Vietnamese commercial banks or foreign bank branches (FBB) that are established and operating in accordance with Vietnam’s law (referred to as “receiving banks").

- The deposits shall be used for payment of salaries, social insurance, health insurance, unemployment insurance, occupational accident and disease insurance premiums and provision of other benefits for dispatched employees in accordance with the employment contracts, collective bargaining agreements, rules and regulations of the dispatching agencies; payment of compensation to the dispatched employees in case the dispatching agency violates the employment contracts or causes damage to the dispatched employees due to failure to protect lawful rights and interests of the dispatched employees.

2. Payment of deposits

- The dispatching agency shall pay deposits and will receive an interest on these deposits in accordance with regulations of the receiving bank and law.

- The receiving bank shall issue a certificate of deposit payment (Form No. 01/PLIII in Appendix III hereof) after the dispatching agency completes the depositing procedures. In case any of the information on the certificate is changed (name, headquarters address, deposit account number), the dispatching agency shall send a written request and supporting documents to the bank.

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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