Responsibilities of the dispatching agency when its license is revoked in Vietnam

Responsibilities of the dispatching agency when its license is revoked in Vietnam (Internet image)

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

1. Responsibilities of the dispatching agency when its license is revoked in Vietnam

Responsibilities of the dispatching agency when its license is revoked or its application for renewal or reissuance of the license is rejected according to Article 29 of Decree 145/2020/ND-CP are as follows:

Within 15 working days from the receipt of the document of the President of the People’s Committee of the province about rejection of the application for renewal or reissuance of the license or revocation of the license, the dispatching agency shall finalize all ongoing labor dispatch contracts, settle the lawful rights and interests of the dispatched employees and the client enterprises in accordance with labor laws; announce its shutdown on at least one licensed online newspapers for 07 days.

2. Labor outsourcing rules in Vietnam

Labor outsourcing rules in Vietnam according to Article 53 of the Labor Code 2019 are as follows:

- The maximum duration of labor outsourcing is 12 months.

- The client enterprise may employ an outsourced worker in the following cases:

+ The employment is necessary for the sharp increase in labor demand over a limited period of time;

+ The outsourced worker is meant to replace another employee who is taking maternal leave, has an occupational accident or occupational disease or has to fulfill his/her citizen’s duties;

+ The work requires highly skilled workers.

- The client enterprise may not employ an outsourced worker in the following cases:

+ The outsourced worker is meant to replace another employee during a strike or settlement of labor disputes;

+ There is no agreement with the outsourcing enterprise on responsibility for compensation for the outsourced worker’s occupational accidents and occupational diseases;

+ The outsourced worker is meant to replace another employee who is dismissed due to changes in organizational structure, technology, economic reasons, full division, partial division, consolidation or merger of the enterprise.

- The client enterprise must not dispatch an outsourced worker to another employer; must not employ an employee dispatched by an enterprise that does not have the labor outsourcing license.

3. Rights and obligations of the outsourcing enterprise in Vietnam

According to Article 56 of the Labor Code 2019, apart from the rights and obligations specified in Article 6 of this Labor Code, the outsourcing enterprise also has the following rights and obligations:

- Provide an outsourced worker who meets the requirements of the client enterprise and the employment contract signed with the employee;

- Inform the outsourced worker of the contents of the labor outsourcing contract;

- Provide the client enterprise with the curriculum vitae of the outsourced worker, and his/her requirements.

- Pay the outsourced worker a salary that is not lower than that of a directly hired employee of the client enterprise who has equal qualifications and performs the same or equal work;

- Keep records of the number of outsourced workers, the client enterprise, submit periodic reports to the provincial labor authority.

- Take disciplinary measures against the outsourced worker in cases where the client enterprise returns the employee for violations against labor regulations.

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