Content of guarantee contracts for Vietnamese guest workers

What are the regulations on the content of guarantee contracts for Vietnamese guest workers? - Trong Nhan (Can Tho, Vietnam)

Content of guarantee contracts for Vietnamese guest workers (Internet image)

1. Content of guarantee contracts for Vietnamese guest workers

Article 10 of Circular 21/2021/TT-BLDTBXH stipulates the content of guarantee contracts for Vietnamese guest workers are as follows:

* Participants

- The guarantors are entities that have sufficient conditions as prescribed in Article 55 of the Law No. 69/2020/QH14;

- The obligors are Vietnamese guest workers;

- The obligees are service enterprises or service providers that provide Vietnamese guest worker services.

* Scope of guarantee

The scope of guarantee is part of or the entire of the following tasks of the obligor:

- Paying unpaid service fees of the obligors;

- Paying compensation for the damage caused by the obligors' breach of the contract;

- Paying the interest in case of late payment of money under the scope of guarantee which is calculated by the interest for demand deposits in VND of a credit institution as agreed by parties corresponding to the time of late payment at the time of payment.

* Rights and tasks of participants

- The guarantor may:  

+ Receive sufficient and accurate information on rights and tasks of obligors for obligees from the obligee, obligor, and related parties;

+ Request the obligee to inform the working place, employment situation, income, health, and working and living conditions of the obligor;

+ Request the obligee to comply with commitments with the guarantor and obligor;

+ Request compensation for damage and use that amount to compensate tasks with the obligee (if any) in case the obligee fails to perform or improperly or incompletely performs the tasks prescribed in Point d1), d2), d4), and d8) of this Article causing damages to the guarantor;

+ Receive notifications on the completion of tasks of the obligor from the obligor or obligee;

+ Request the obligee to return documents proving the financial capability, capability, and reputation of the guarantor (if any) when the guarantee contract ends;

+ Request the obligor to perform its task within the scope of the guarantee task performed by the guarantor, except for cases with other agreements.

+ Request the obligor to return the received asset or the value corresponding to the part of guarantee tasks performed by the guarantor in case the obligor still performs its tasks.

- The guarantor shall: 

+ Transfer documents proving its financial capability, capability, and reputation, and other necessary documents to the obligee;

+ Mobilize and educate the obligor to properly perform tasks according to the signed contract with the obligee; adopt necessary measures to prevent and remedy damages caused by the obligor's breach of the contract;

+ Perform tasks on behalf of the obligor within the committed scope of guarantee in case the obligor fails to perform or improperly or incompletely performs tasks in the signed contract with the obligee;

+ Hand over its asset to the obligee or a third party according to an agreement to handle in case the guarantor fails to perform or improperly or incompletely performs its tasks

+ Pay the value of the violated task and compensate the damage in case the guarantor fails to perform or improperly or incomplete performs its tasks.

- The obligee may: 

+ Request the guarantor to perform its tasks, except for cases where parties agree that the guarantor shall only perform tasks on behalf of the obligor in case the obligor is incapable of performing its tasks;

+ Request the guarantor to transfer documents proving its financial capability, capability, and reputation, and other necessary documents to the obligee;

+ Request the guarantor to mobilize and educate the obligor to properly perform tasks according to the signed contract with the obligee;

+ Request the guarantor to hand over its asset to handle in case the guarantor fails to perform or improperly or incompletely performs its tasks when the deadline is due;

+ Request the guarantor to pay the value of the violated task and compensate the damage in case the guarantor fails to perform or improperly or incomplete performs its tasks.

- The obligee shall:  

+ Comply with commitments with the guarantor and obligor; 

+ Accurately, sufficiently, and timely inform the guarantor of rights and tasks of the obligor for the obligee;

+ Inform the working place, employment situation, income, health, and working and living conditions of the obligor at the request of the guarantor;

+ Preserve, protect, keep, and prevent loss of documents proving the financial capability, capability, and reputation of the guarantor if parties agree that the obligee will be in charge of such documents. In case the mentioned documents are damaged or lost, the obligee shall compensate the damage;

+ Inform the guarantor about the performance of tasks on behalf of the obligor when there are grounds for performing the guarantee tasks in accordance with the law on secured transactions; if the obligor must perform tasks ahead of time due to violation of tasks but fails to perform or improperly or incomplete performs such tasks, the obligee shall provide specific explanations in the notification about the performance of tasks ahead of time of the obligor;

+ Provide the guarantor with documents proving the tasks of the obligor within the scope of guarantee tasks and the damage caused by the obligor;

+ Inform the guarantor about the completion of tasks of the obligor;

+ Return documents proving the financial capability, capability, and reputation of the guarantor (if any) when the guarantee contract ends;

+ Inform the obligor about the completion of tasks of the guarantor.

* Termination of guarantee

The termination of guarantee happens in cases prescribed by the civil law on guarantee.

* Other agreements that are not contrary to regulations of the law.

2.  Liquidation of guarantee contracts in Vietnam

 Liquidation of guarantee contracts in Vietnam according to Article 11 of Circular 21/2021/TT-BLDTBXH is as follows:

-  The time for the liquidation of a guarantee contract is 30 days from the date of termination of the guarantee, except for cases with different agreements of parties.

- The liquidation of guarantee contracts shall be in a separate document or included in the guarantee termination document or guarantee termination agreement;

Specifying the extent of the implementation of agreed content in the guarantee contract of parties and responsibilities of parties (if any) due to the liquidation.

Quoc Dat

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