Vietnam: Conditions for establishing employment service businesses

Vietnam: Conditions for establishing employment service businesses

1. Conditions for establishing employment service businesses

According to Article 14 of Vietnam's Decree 23/2021/ND-CP, the conditions for granting a license to establish employment service businesses are as follows:

- Having premises for an employment service business’s main office or branches to organize employment service activities which are owned or rented permanently by the business under a contract having the term of 3 years (36 months) or more.

- The business has already pledged 300,000,000 dong (Three hundred million dong) as a security deposit.

- The business’s legal representative must meet the following conditions:

+ He/she is the business’s executive in accordance with regulations of the Law on Enterprises;

+ He/she is not falling into the following situations: prosecuted for criminal liability;

++ Detained;

++ Serving imprisonment penalties;

++ Serving administrative penalties at compulsory detoxification establishments or compulsory education centers;

++ Fleeing from his/her place of residence; having restricted or lost capacity of performing civil acts;

++ Facing cognitive difficulties, problems in awareness and behavior control;

++ Banned by courts from holding certain posts or practicing certain occupations or doing certain jobs relating to employment services;

+ Having a university degree or higher qualification or having directly involved in professional or administrative tasks related to employment services, or rendering of employment services, for 02 years (24 months) or more within 05 consecutive years before applying for the license.

2. Application for the establishment of employment service businesses

The application for the establishment of employment service businesses is specified in Article 17 of Vietnam's Decree 23/2021/ND-CP as follows:

(1) Written request for issuance of the license made by using the Form No. 02 of the Appendix II issued together with Vietnam's Decree 23/2021/ND-CP.

Form No. 02

(2) 01 certified true copy of the primary copy or the duplicate with the original presented for comparison purposes of the certificate of ownership or the office lease contract

(3) Certificate of security deposit for rendering of employment services by using the Form No. 03 of Appendix II.

Form No. 03

(4) Biographical statement of the business’s legal representative that is made by using the Form No. 04 of the Appendix II.

Form No. 04

(5)  Criminal record check No. 1 that is made in accordance with laws on criminal records of legal representatives of businesses. In case where the representative is a foreigner who is not eligible for the criminal record check No. 1, the criminal record check

or the written document confirming that he/she is not a person who is currently serving a penalty or has not yet been issued with criminal record expungement, or is criminally prosecuted in foreign countries, may be used as a replacement.

Written documents stated in this clause must be issued for less than 06 months before the date of submission. Written documents in foreign languages ​​must be translated into Vietnamese, authenticated and consularly legalized in accordance with law.

(6) 01 certified true copy of the primary copy or the copy with the original presented for comparison purposes of professional qualifications prescribed at point c, clause 3, Article 14, or one of the written documents proving the time during which he/she directly involves in rendering of employment services or management of employment services or supply of employees as follows:

- Certified true copy of the primary copy or the copy with the original presented for comparison purposes of the labor contract or the employment contract or the decision on recruitment, appointment or assignment of duties of the business’s legal representative;

- Certified true copy of the primary copy or the copy with the original presented for comparison purposes of the appointment decision (if he/she works under appointment rules and regulations),

Or the written document stating recognition of election results (if he/she works under election rules and regulations), of the business’s legal representative, or the copy of the business registration certificate (if he/she is the legal representative of the employment service provider).

If written documents stated in item (6) are those made in foreign countries, they ​​must be translated into Vietnamese, authenticated and consularly legalized in accordance with law.

3. Processes and procedures for issuance of licenses

According to Article 18 of Vietnam's Decree 23/2021/ND-CP, the procedures for setting up employment service businesses are as follows:

- The applicant business sends 01 set of application documents to the Department of Labor, War Invalids and Social Affairs of the place where its main office is located to apply for the license.

- Upon determining that all documents are submitted, the receiving Department of Labor, War Invalids and Social Affairs issues a note of acknowledgement clarifying the date on which application documents are received.

- Within the maximum duration of 07 working days of receipt of application documents meeting regulations, the competent state authority considers issuing the license to the applicant business; in case of refusal to grant the license, a written response clarifying reasons for such refusal must be sent.

Quoc Dat

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