Time limit for payment of additional deposits of dispatching agencies in Vietnam

Time limit for payment of additional deposits of dispatching agencies in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Payment and use of deposits of dispatching agencies in Vietnam

Article 15 of Decree 145/2020/ND-CP stipulates the payment and use of deposits with dispatching agencies as follows:

- 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 (hereinafter 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. Time limit for payment of additional deposits of dispatching agencies in Vietnam

The time limit for payment of additional deposits of dispatching agencies in Vietnam according to Article 20 of Decree 145/2020/ND-CP is as follows:

- Within 30 days from the day on which the deposit is withdrawn for making the payments prescribed in Point a and Point b Clause 1 Article 18 and Article 19 of Decree 145/2020/ND-CP, the enterprise shall pay additional deposits to conform to Clause 2 Article 21 of Decree 145/2020/ND-CP.

- If the dispatching agency fails to pay the additional deposit within 30 days from the expiration of the time limit prescribed in Clause 1 of Article 20 of Decree 145/2020/ND-CP, the receiving bank shall send a written notice to the Department of Labor, War Invalids and Social Affairs and the President of the People’s Committee of the province where the dispatching agency is headquartered.

Within 15 days from the receipt of such notice, the Department of Labor, War Invalids and Social Affairs shall propose revocation of the dispatching agency’s license to the President of the People’s Committee of the province in accordance with Clause 4 Article 28 of Decree 145/2020/ND-CP.

3. Case of dispatching agencies entitled to withdrawal of deposits in Vietnam

According to Clause 1, Article 18 of Decree 145/2020/ND-CP, 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 FBB.

Quoc Dat

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