Regulations on extraction of deposits in case a dispatching agency fails to fulfill its obligations to the dispatched employees

Regulations on extraction of deposits in case a dispatching agency fails to fulfill its obligations to the dispatched employees (Internet image) 

Regarding this issue, LawNet would like to answer as follows:

1. Regulations on extraction of deposits in case a dispatching agency fails to fulfill its obligations to the dispatched employees

Regulations on extraction of deposits in case a dispatching agency fails to fulfill its obligations to the dispatched employees according to Article 19 of Decree 145/2020/ND-CP are as follows:

- In case the dispatching agency fails to pay and provide benefits for the dispatched employees according to Clause 2 Article 15 of Decree 145/2020/ND-CP upon the expiration of the 60-day time limit, the Department of Labor, War Invalids and Social Affairs shall send a written request for payment and provision of benefits for the dispatched employees after consulting with the social insurance authority and relevant organizations.

If the dispatching agency does not make payment or submits an application for withdrawal of the deposit for making payment within 10 days from the day on which the request is sent by the Department of Labor, War Invalids and Social Affairs, the Department of Labor, War Invalids and Social Affairs shall request the President of the People’s Committee of the province to grant permission for extracting the dispatching agency’s deposit to pay and provide benefits for the dispatched employees following the procedures below:

+ The Department of Labor, War Invalids and Social Affairs shall request the dispatching agency to submit a report including the list of dispatched employees, unpaid amounts, compensations and benefits of each employee.

The dispatching agency shall submit the report within 05 working days from the receipt of the request. Within 03 working days from the receipt of the request from the dispatching agency, the Department of Labor, War Invalids and Social Affairs shall request the President of the People’s Committee of the province to consider permitting the extraction of the dispatching agency’s deposit;

+ Within 05 working days from the receipt of the request from the Department of Labor, War Invalids and Social Affairs, the President of the People’s Committee of the province shall consider issue a decision on extracting the dispatching agency’s deposit (Form No. 03/PLIII in Appendix III hereof);

+ Within 07 working days from the receipt of the decision from the President of the People’s Committee of the province, the receiving bank shall extract the dispatching agency’s deposit and make payments to the dispatched employees on the list enclosed with the decision after deducting banking fees.

Payments shall be made in the following order of priority: salaries, social insurance, health insurance, unemployment insurance; occupational accident and disease insurance; other benefits for the dispatched employees under the employment contracts, collective bargaining agreement, rules and regulations of the dispatching agency.

- The Department of Labor, War Invalids and Social Affairs shall supervise the process of making payment and compensation to the dispatched employees in accordance with Clause 1 of Article 19 of Decree 145/2020/ND-CP and submit a report to the People’s Committee of the province.

2. Regulations on payment of additional deposits in Vietnam

Regulations on payment of additional deposits according to Article 20 of Decree 145/2020/ND-CP are as follows:

- Within 30 days from the day on which the deposit is withdrawn for making the payments prescribed in Point a and Point b Clause 1 Article 18 and Article 19 of Decree 145/2020/ND-CP, the enterprise shall pay additional deposits to conform to Clause 2 Article 21 of Decree 145/2020/ND-CP.

- If the dispatching agency fails to pay the additional deposit within 30 days from the expiration of the time limit prescribed in Clause 1 of Article 20 of Decree 145/2020/ND-CP, the receiving bank shall send a written notice to the Department of Labor, War Invalids and Social Affairs and the President of the People’s Committee of the province where the dispatching agency is headquartered.

Within 15 days from the receipt of such notice, the Department of Labor, War Invalids and Social Affairs shall propose revocation of the dispatching agency’s license to the President of the People’s Committee of the province in accordance with Clause 4 Article 28 of Decree 145/2020/ND-CP.

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