What is the maximum duration of labor outsourcing in Vietnam?

What is the maximum duration of labor outsourcing in Vietnam? (Internet image)

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

1. What is the maximum duration of labor outsourcing in Vietnam?

According to Article 53 of the Labor Code 2019, the labor outsourcing rules 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.

Thus, the maximum duration of labor outsourcing is 12 months.

2. 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 the Labor Code 2019, 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.

3. Rights and obligations of the client enterprise in Vietnam

Rights and obligations of the client enterprise according to Article 57 of the Labor Code 2019 are as follows:

- Inform and guide the outsourced worker to understand its internal labor regulations and other regulations.

- Do not discriminate between the outsourced worker and its directly hired employees in respect of the working conditions.

- Reach an agreement with the outsourced worker on night work and overtime work in accordance with the Labor Code 2019.

- The client enterprise may negotiate with the outsourced worker and the dispatch enterprise on official employment of the outsourced worker while the employment contract between the dispatch employee and the dispatch enterprise is still unexpired.

- Return the outsourced worker who does not meet the agreed conditions or violates the work regulations to the dispatch enterprise.

- Provide evidence of violations against work regulations by the outsourced worker to the outsourcing enterprise for disciplinary measures.

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