Conditions for setting up a company in Vietnam for labor outsourcing

Labor outsourcing is a business line allowed by law to form businesses specializing in providing professional services for specific industries, improving labor productivity, and reducing costs for employees. recruitment and training of personnel. In addition, the labor outsourcing activity makes it easy for businesses to adjust human resources in a short time, creating conditions for employees to change many working environments. However, in order to establish a labor outsourcing company, the business entity must meet certain conditions. What are the Conditions for setting up a company in Vietnam for labor outsourcing?

Legal basis

• WTO, CPTPP;
• Labour Code 2019;
• Law on Enterprise 2020;
• Decree 145/2020/ND-CP detailing and guiding the implementation of a number of articles of the Labor Code on labor conditions and labor relations.

Market access conditions for labor outsourcing services

WTO commitments: not regulated

Commitment to CPTPP: unlimited

Thus, for this service, Vietnam has only opened the market to foreign investors within the scope of CPTPP commitments and has not yet committed to the remaining countries. When entering the market, foreign investors need to fully meet the requirements of Vietnamese law, namely: Decree 145/2020/ND-CP detailing and guiding the implementation of a number of articles of the Labor Code on labor conditions and labor relations.

Conditions for setting up a company in Vietnam for labor outsourcing

Labor outsourcing is the work of the employee entering into a labor contract with an employer that is a labor outsourcing enterprise, then the employee is transferred to work and is under the control of another employer while still maintaining the labor relationship work with the employer who has entered into a labor contract.

Therefore, in order to carry out labor outsourcing activities, the outsourcing enterprise must ensure the conditions specified in Article 54 of the Labor Code 2019 and the guidance in Article 12 of Decree 145/2020. /ND-CP detailing and guiding the implementation of a number of articles of the Labor Code on labor conditions and labor relations (Decree 145 / 2020 /ND- CP ) , including the following conditions :

Conditions for the legal representative

The legal representative of the enterprise performing labor outsourcing activities must ensure the following conditions:

• As a business manager according to regulations. Enterprise managers here include private business owners, general partners, the Chairman of the Members’ Council, members of the Members’ Council, the President of the company, the Chairman of the Board of Directors, and members of the Board of Directors. the administrator, director, or general director and individuals holding other managerial positions have the authority to sign transactions on behalf of the company in accordance with the company’s charter.
• No convictions.
• Having worked directly as a specialist or manager in labor outsourcing or labor supply for full 03 years (36 months) or more within 05 consecutive years before applying for a license.

Escrow

The enterprise has made a deposit of VND 2,000,000,000 (two billion Vietnamese dong) at a Vietnamese commercial bank or a foreign bank branch legally established and operating in Vietnam.

Using labor

Having recruited, concluded a labor contract with the employee, then transferred the employee to work and be under the control of another employer while still maintaining the labor relationship with the sub-leasing enterprise.

List of occupations subject to labor outsourcing

In addition to regulations on conditions for labor outsourcing enterprises, Vietnamese law also stipulates occupations and jobs permitted to be outsourced. Accordingly, the list of jobs to be performed for outsourcing is specified in Appendix 2 . promulgated together with Decree 145/2020/ND-CP, detailing and guiding the implementation of a number of articles of the Labor Code on labor conditions and labor relations, including 20 occupations:

• Interpreter/Compile/Shortogram.
• Secretary/Administrative Assistant.
• Sales support.
• Project support.
• Programming of production machines.
• Manufacture and installation of television and telecommunications equipment.
• Operation/inspection/repair of construction machinery, production power system.
• Cleaning and sanitizing buildings and factories
• Document editing.
• Bodyguard/Guard.
• Marketing/Customer Care over the phone.
• Handling financial and tax issues.
• Repair/Check operation of cars
• Scan, and draw industrial engineering/Interior decoration.
• Management, operation, maintenance, and service on board ships.
• Management, supervision, operation, repair, maintenance, and servicing of oil and gas rigs.
• Piloting, serving on board/Maintenance and repair of aircraft and aircraft equipment/Schedule, flight operations/Flight supervision.

Cases where enterprises are not granted a license to work outsourcing

To be granted an operation license, an enterprise must satisfy the conditions specified in Article 21 of Decree 145/2020/ND-CP. An enterprise shall not be granted a license for outsourcing operations in the following cases :

• Failing to meet the conditions specified in Article 21 of Decree No. 145/2020/ND-CP of the Government.
• Used fake license for labor outsourcing operation.
• Having a legal representative who used to be the legal representative of an enterprise whose license is revoked for the reasons specified at Points d, dd, and e, Clause 1, Article 28 of Decree No. 145/2020/ND-CP of the Government for 05 consecutive years before applying for a license to work on outsourcing.
• Having a legal representative who used to be the legal representative of an enterprise using a fake license.

Dossier of application for a license for labor outsourcing

• The enterprise’s written request for a license is made according to Form No. 01/PLIII, Appendix III issued together with Decree No. 145/2020/ND-CP.
• Autobiographical curriculum vitae of the legal representative of the enterprise according to Form No. 07/PLIII Appendix III issued together with Decree No. 145/2020/ND-CP.
• Criminal record card No. 1 according to the law on criminal record of personslegal representative of the enterprise. In case the legal representative is a foreigner who is not subject to the issuance of the No. 1 judicial record card, it shall be replaced with a judicial record card in the country of nationality (the criminal record card is issued before the date of submission of dossiers must not exceed 6 months; documents in foreign languages must be translated into Vietnamese, authenticated and consular legalized in accordance with law.
• A document proving that the legal representative of the enterprise has directly worked as a specialist or manager in labor outsourcing or labor supply for a full 03 years (36 months) or more within a period of 5 years. adjacent before the license application is one of the following types of documents.
• A certified copy of the original labor contract or work contract or the decision on recruitment, appointment, and assignment of duties of the legal representative of the enterprise. In case the document is a foreign document, it must be translated into Vietnamese, certified, and consular legalized in accordance with law.
• A certified true copy of the original appointment decision (for persons working under the appointment system) or the written recognition of election results (for persons working under the electoral system) of the legal representative law of the enterprise or a copy of the enterprise registration certificate (for the case of the legal representative of the sub-lease or labor supply enterprise). In case the document is a foreign document, it must be translated into Vietnamese, certified, and consular legalized in accordance with law.
• Certificate of deposit for labor outsourcing, made according to Form No. 01/PLIII, Appendix III issued together with Decree No. 145/2020/ND-CP.

Procedures for applying for a license for labor outsourcing operation

Step 1 : The enterprise sends 01 set of dossiers as prescribed to the Department of Labor, War Invalids and Social Affairs of the province or centrally run city where the enterprise is headquartered to apply for a license. After checking all the required documents, the Department of Labor, War Invalids and Social Affairs issues a receipt clearly stating the date, month and year of receipt of the application.

Step 2 : Within 20 working days from the date of receipt of the required dossier, the Department of Labor, War Invalids and Social Affairs shall verify and submit it to the Chairman of the provincial People’s Committee for granting an operation license to the provincial People’s Committee. re-hiring labor for enterprises. In case the dossier is not as prescribed, within 10 working days from the date of receiving the dossier, the Department of Labor, War Invalids and Social Affairs shall send a written request to the enterprise to complete the dossier.

Step 3 : Within 07 working days from the date of receiving the dossier submitted by the Department of Labor, War Invalids and Social Affairs, the Chairman of the provincial People’s Committee shall consider and grant the license to the enterprise; in case the license is not granted, the enterprise shall reply in writing, clearly stating the reason for not granting the license.

Customers wishing to establish a labor outsourcing company, please contact Viet An Law Firm for the best support!