NEW WORK PERMIT FOR LABOR OUTSOURCING

Legal basis:

  • Labor Code
  • Decree No.152/2020/NĐ-CP
  • Decree No.70/2023/NĐ-CP

Definition of Labor outsourcing

According to Article 52 of the Labor Code, labor outsourcing is when an employee signs a labor contract with an employer who is an outsourcing enterprise, then the employee is transferred to work. Work and be under the control of another employer while still maintaining a labor relationship with the employer who has entered into a labor contract. Labor outsourcing activity is a conditional business line, only carried out by businesses with a Labor outsourcing License and applicable to limited certain jobs.

Labor outsourcing must meet all the criteria according to the Labor Code, including:

  1. The maximum duration of a labor outsourcing is 12 months.
  2. The client enterprise may employ an outsourced worker in the following cases:
  3. a) The employment is necessary for the sharp increase in labor demand over a limited period of time;
  4. b) 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;
  5. c) The work requires highly skilled workers.
  6. The client enterprise may not employ an outsourced worker in the following cases:
  7. a) The outsourced worker is meant to replace another employee during a strike or settlement of labor disputes;
  8. b) There is no agreement with the outsourcing enterprise on responsibility for compensation for the outsourced worker’s occupational accidents and occupational diseases;
  9. c) 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.
  10. 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.

New issuance of work permit when outsourcing labor 

According to the provisions of Clause 1 Article 4 of Decree No.70/2023/ND-CP regulating foreign workers working in Vietnam, and recruitment and management of Vietnamese workers working for foreign employers in Vietnam, at least 15 days in advance from the expected date of using foreign workers, employers (except contractors) are responsible for determining the need to use foreign workers. After receiving approval for the need to use foreign workers, the employer must apply for a work permit according to the provisions of Article 11 of Decree No.152/2020/ND-CP.

In case a foreign worker has been granted a work permit but needs to work for another employer, based on Article 12 of Decree 152/2020/ND-CP, a new work permit must be issued according to regulations because of changing the work location stated in the valid work permit.