What is Labor Sublease?
How is this activity regulated by the Labor Code of 2019?
The following article will address the above issues.
Article table of contents
Notable Points about Labor Leasing under the Labor Code 2019 (illustration)
1. What is labor leasing?
According to labor law regulations, "Labor leasing" is when an employee enters into a labor contract with an employer that is a labor leasing enterprise, and then the employee is transferred to work and be managed by another employer while still maintaining a labor relationship with the employer who initially signed the labor contract.
2. Principles of labor leasing operations
Although continuing the spirit of the Labor Code 2012, the legislators have gradually perfected the regulations regarding labor leasing to make this relationship more stringent. Due to the complex nature of labor relationships, the labor leasing relationship becomes even more complicated when employees are transferred to work for and under the control of another employer while still maintaining a labor relationship with the initial employer. Therefore, the principles of labor leasing operations are stipulated in the Labor Code 2019 as follows:
Firstly, the maximum duration of labor leasing for an employee is 12 months.
Secondly, the labor leasing hirer can use leased labor in the following cases:
- To temporarily meet a sudden increase in the need for labor in a certain period;- To replace employees during maternity leave, occupational accident, occupational disease, or when performing civic duties;- When there is a need for labor with high technical expertise.
Thirdly, the labor leasing hirer cannot use leased labor in the following cases:
- To replace employees who are currently on strike or resolving labor disputes;- When there is no specific agreement about compensation responsibilities for occupational accidents and diseases between the labor leasing hirer and the labor leasing enterprise;- To replace workers who have been laid off due to structural changes, technological reasons, economic reasons, or during mergers and acquisitions.
Finally, the labor leasing hirer cannot transfer the leased employee to another employer; and cannot use leased employees provided by an enterprise without a Labor Leasing Operation License.
3. Conditions for enterprises to conduct labor leasing operations
According to the legal regulations, labor leasing operation is a conditional business line, and it can only be performed by enterprises with a Labor Leasing Operation License and is applicable to certain jobs. Furthermore, the labor leasing enterprise must make a deposit and be granted a Labor Leasing Operation License.
Note: the Government of Vietnam stipulates deposit requirements, conditions, order, procedures for issuance, re-issuance, extension, and revocation of the Labor Leasing Operation License, and the list of jobs subject to labor leasing.
4. Labor leasing contract
The Labor Code 2019 stipulates that the labor leasing enterprise and the labor leasing hirer must sign a written labor leasing contract in two copies, each party keeping one copy.
The main content of the labor leasing contract includes:
- Working location, job positions requiring leased labor, specific job contents, specific requirements for leased labor;- Labor lease duration; start time of leased laborer’s work;- Working hours, resting hours, labor safety, and hygiene conditions at the workplace;- Compensation responsibilities for occupational accidents and diseases;- Obligations of each party towards the employee.
Overall, the primary terms stipulated in the labor leasing contract are inherited from the Labor Code 2012. However, the clause regarding compensation responsibilities for occupational accidents and diseases has been added to increase the responsibility of the labor leasing hirer towards the directly working employee. This will help protect the rights of employees working in harsh environments that affect health.
Legal Basis:
Long Binh
