Chairman of the Board of Directors who is a foreigner: Is a work permit required?

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Regarding Ms. T's issue, the Editorial Board of THU KY LUAT would like to respond as follows:

According to current regulations, in this case, Ms. T does not need to apply for a work permit for the Chairman of the Board of Directors of the company. Specifically, Clause 2, Article 172 of the Labor Code 2012 stipulates as follows:

Article 172. Foreigners working in Vietnam not subject to work permits

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2. Being a member of the Board of Directors of a joint-stock company.

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Ms. T will have to follow the procedure to confirm that foreign workers are not subject to work permits as follows:

Step 1: Prepare the confirmation dossier

The dossier shall be prepared according to the provision of Clause 3, Article 8 of Decree 11/2016/ND-CP, which in this case includes the following documents:

1. A written request for confirmation that foreign workers are not subject to work permits;
2. Documents proving that foreign workers are not subject to work permits (specifically in this case, the Decision to elect the Chairman of the Board of Directors and the Minutes of the Board of Directors meeting);
3. Documents proving that foreign workers are not subject to work permits must include 01 copy attached with the original for comparison or 01 certified copy. If the documents are from abroad, they are exempt from consular legalization but must be translated into Vietnamese and notarized in accordance with Vietnamese law.

Step 2: Submit the dossier to the Department of Labor, Invalids and Social Affairs (DOLISA)

The employer shall request the Department of Labor, Invalids and Social Affairs where the foreign worker is expected to work to confirm that the foreign worker is not subject to a work permit at least 07 working days before the foreign worker commences their work.

Step 3: Receive the result

Within 03 working days from the date of receipt of the complete confirmation dossier, the Department of Labor, Invalids and Social Affairs will issue a written confirmation to the employer. In cases where confirmation is not granted, a written response stating the reasons will be provided.

Note: Allowing the individual to work without a confirmation that they are not subject to a work permit will be fined from VND 15,000,000 to VND 25,000,000 as stipulated at Point a, Clause 3, Article 31 of Decree 28/2020/ND-CP.

Lan Anh

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