Regulations on payment and withdrawal of deposits of dispatching agencies in Vietnam

Regulations on payment and withdrawal of deposits of dispatching agencies in Vietnam (Internet image)

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

1. Regulations on payment of deposits of dispatching agencies in Vietnam

Regulations on payment of deposits with dispatching agencies in Vietnam according to Article 16 of Decree 145/2020/ND-CP are as follows:

- The dispatching agency shall pay deposits will receive an interest on these deposits in accordance with regulations of the receiving bank and law.

- The receiving bank shall issue a certificate of deposit payment (Form No. 01/PLIII in Appendix III of Decree 145/2020/ND-CP) after the dispatching agency completes the depositing procedures.

In case any of the information on the certificate is changed (name, headquarters address, deposit account number), the dispatching agency shall send a written request and supporting documents to the bank.

2. Regulations on withdrawal of deposits of dispatching agencies in Vietnam

Regulations on withdrawal of deposits of dispatching agencies in Vietnam according to Article 18 of Decree 145/2020/ND-CP are as follows:

* The President of the People’s Committee of the province where the dispatching agency is headquartered will permit the dispatching agency in the following cases:

- The dispatching agency is facing difficulties and is not financially capable of paying salaries, social insurance, health insurance, unemployment insurance, occupational accident and disease insurance premiums and provide other benefits for the dispatched employees under their employment contracts, collective bargaining agreement, rules and regulations of the dispatching agency after 30 days from the payment deadline as prescribed by law;

- The dispatching agency is facing difficulties and is not financially capable of paying compensation for breaching the employment contracts with the dispatched employees or for the damage to the dispatched employees due to the dispatching agency’s failure to ensure lawful rights and interests of the dispatched employees after 60 days from the deadline for paying compensation as prescribed by law;

- The dispatching agency is not licensed;

- The dispatching agency has its licensed revoked or cannot have its license renewed or reissued;

- The dispatching agency has paid deposit at another Vietnamese commercial bank or FBB.

* An application for permission of the President of the People’s Committee of the province for deposit withdrawal consists of:

- A written request for permission for deposit withdrawal;

- The plan for use of the withdrawn deposit: reasons for withdrawal, list of employees, amount, time and method of payment in the cases specified in Point a and Point b Clause 1 of Article 18 of Decree 145/2020/ND-CP;

- A report and documents proving fulfillment of obligations to dispatched employees in the cases specified in Point d Clause 1 of Article 18 of Decree 145/2020/ND-CP;

- The certificate of deposit payment in the cases specified in Point dd Clause 1 of Article 18 of Decree 145/2020/ND-CP.

* An application for withdrawal of deposit submitted to the receiving bank consists of:

- A written request for deposit withdrawal as prescribed in Point a Clause 2 of Article 18 of Decree 145/2020/ND-CP;

- The written permission of the President of the People’s Committee of the province (Form No. 02/PLIII in Appendix III of Decree 145/2020/ND-CP;

- Deposit withdrawal documents required by the receiving bank (if any).

* Deposit withdrawal procedures:

- The dispatching agency shall submit 01 application prescribed in Clause 2 of Article 18 of Decree 145/2020/ND-CP to the Department of Labor, War Invalids and Social Affairs of the province where it is headquartered;

- The Department of Labor, War Invalids and Social Affairs shall receive the application, issue a receipt note specifying the date of receipt; verify the application within 05 working days from the day on which adequate documents are received and submit it to the President of the People’s Committee of the province for decision;

- Within 05 working days from the receipt of the application from the Department of Labor, War Invalids and Social Affairs, the President of the People’s Committee of the province shall decide whether to issue the permission for deposit withdrawal and send it to the dispatching agency and the receiving bank.

If the application is rejected, the President of the People’s Committee of the province shall send a written response to the dispatching agency specifying the reasons for rejecting;

- After the written permission is issued by the President of the People’s Committee of the province, the dispatching agency shall submit the application specified in Clause 3 of Article 18 of Decree 145/2020/ND-CP to the receiving bank;

- If the application is satisfactory, the receiving bank shall allow the dispatching agency to withdraw the deposit within 01 working day from the day on which the application is received.

In the cases of deposit withdrawal specified in Point a and Point b Clause 1 of Article 18 of Decree 145/2020/ND-CP, the amounts and compensations to the dispatched employees shall be directly paid by the receiving bank under the plan approved by the President of the People’s Committee of the province after deducting banking fees.

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE