Recently, the National Assembly XIV of Vietnam has approved the Law on Vietnamese Guest Workers (amended). Notably, workers going to work abroad do not have to pay brokerage fees.
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Specifically, the Law on Vietnamese Guest Workers 2020 has annulled the provision that workers shall refund to the service enterprise a part or the whole of brokerage commission under regulations of the Ministry of Labor, War Invalids and Social Affairs of Clause 1 Article 20 of the Law on Vietnamese Guest Workers 2006.
Thus, from January 01, 2022, when the Law on Vietnamese Guest Workers 2020 officially takes effect, workers are not required to refund to the service enterprise the brokerage commission. Therefore, this will reduce costs for workers when there is a need to work abroad under contracts.
In addition to the fact that workers going to work abroad do not have to pay brokerage fees, the Law on Vietnamese Guest Workers 2020 also stipulates that service fees collected from workers by service enterprises must be collected from workers only in form of the remainder of the service fee which have been partially paid for by foreign employment receivers.
Specifically, the Law on Vietnamese Guest Workers 2020 stipulates that service fees collected from workers by service enterprises must be agreed upon by worker(s) and service enterprises; and only be collected once labor supply agreements have been approved by Ministry of Labor – War Invalids and Social Affairs and once contracts for provision of Vietnamese guest worker have been signed, etc. Service fees collected from workers by service enterprises must be collected from workers only in form of the remainder of the service fee which have been partially paid for by foreign employment receivers.
Concurrently, the Law on Vietnamese Guest Workers 2020 also stipulates that the Minister of Labor – War Invalids and Social Affairs shall elaborate the top limit of wages under broker agreement for each market, field of operation and profession from time to time after agreeing with the Minister of Finance. Currently, according to the Joint Circular No. 16/2007/TTLT-BLĐTBXH-BTC, the top limit of service fees collected from workers shall be prescribed as follows:
- The top limit of service fee must not exceed 1 month’s worth of salary of workers and shall be collected once every 12 months of working; not exceed 1.5 month’s worth of salary of officers and crew members working on cargo ships and shall be collected once every 12 months of working;
- In case of contracts for provision of Vietnamese guest service last for at least 36 months, the service fee under such contracts must not exceed 3 months’ worth of salary of workers;
- In case service fees for extended period of contracts for provision of Vietnamese guest service is agreed upon, the top limit of the service fees for every 12 extended months of working must not exceed 0.5 month’s worth of salary of workers;
- For specific markets, fields of operation and professions, the Minister of Labor - War Invalids and Social Affairs shall elaborate the top limit of service fee below the amounts specified above.
It can be seen that the Law on Vietnamese Guest Workers 2020 basically inherits the current regulations, while also reducing service costs for workers wishing to work abroad under contracts.
Ty Na
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- Law on Vietnamese Guest Workers 2020
