I. Legal Basis

The labor leasing enterprise is governed by Decree No. 145/2020/ND-CP and must comply with strict legal conditions. The enterprise must possess an operating license and meet the requirements regarding capital, experience, and legal representation. Additionally, it must commit to fulfilling all obligations related to contracts, wages, social insurance, health insurance, as well as other rights and benefits for employees.

In the labor relationship, the labor leasing enterprise is primarily responsible for recruiting and signing contracts with employees. It must also ensure the implementation of wage and insurance policies. The leasing enterprise is only allowed to utilize labor within the scope of the contract and does not have the right to terminate the labor contract. The maximum leasing period for labor is 12 months. The leased positions must be temporary and short-term, in accordance with legal regulations. During the leasing process, employees are guaranteed benefits equivalent to those of permanent employees, including wages, working hours, and occupational safety.

Violations of the regulations on labor leasing, such as operating without a license or failing to fulfill obligations, will be subject to legal penalties. Enterprises must strictly comply with the provisions of Decree No. 145/2020/ND-CP to ensure legal operations and protect employee rights.

II. Definition

The labor leasing enterprise is governed by Decree No. 145/2020/ND-CP and must comply with strict legal conditions. The enterprise must possess an operating license and meet the requirements regarding capital, experience, and legal representation. Additionally, it must commit to fulfilling all obligations related to contracts, wages, social insurance, health insurance, as well as other rights and benefits for employees.

In the labor relationship, the labor leasing enterprise is primarily responsible for recruiting and signing contracts with employees. It must also ensure the implementation of wage and insurance policies. The leasing enterprise is only allowed to utilize labor within the scope of the contract and does not have the right to terminate the labor contract. The maximum leasing period for labor is 12 months. The leased positions must be temporary and short-term, in accordance with legal regulations. During the leasing process, employees are guaranteed benefits equivalent to those of permanent employees, including wages, working hours, and occupational safety.

Violations of the regulations on labor leasing, such as operating without a license or failing to fulfill obligations, will be subject to legal penalties. Enterprises must strictly comply with the provisions of Decree No. 145/2020/ND-CP to ensure legal operations and protect employee rights.

III. Conditions for Issuing a Labor Leasing Operating License

The legal representative of the labor leasing enterprise must meet important requirements. This individual must be a manager of the enterprise, have no criminal record, and possess at least three years of direct experience in expertise or management related to labor leasing or labor supply within the five years preceding the application for the operating license. Additionally, the enterprise must complete a deposit of 2 billion VND to ensure that labor leasing activities are conducted legally.

IV. Deposit of the Labor Leasing Enterprise

The enterprise must make a deposit at a commercial bank in Vietnam or a legally established and operating foreign bank branch in Vietnam (the bank receiving the deposit). The deposit is intended for the payment of wages, social insurance, health insurance, unemployment insurance, occupational accident insurance, occupational disease insurance, and other entitlements for leased employees, as agreed upon in the labor contract, collective labor agreement, regulations, and rules of the leasing enterprise. The deposit may also be used to compensate leased employees in cases where the leasing enterprise violates the labor contract or causes damage to leased employees by failing to ensure their legal rights and benefits.

V. About Us, Hankuk Law Firm

■ Hankuk Law Firm – Introduction

The goal of the legal services provided by HANKUK LAW FIRM is to support businesses, investors, and people. Our organization employs skilled Korean lawyers, partners, and professionals to provide legal services to businesses related to corporations and litigation.

To support the startup process, our lawyers and staff provide a wide range of services, including business law consulting, tax and immigration law consulting, real estate services, business consulting, marketing and communications, human resources, product distribution, franchise options, etc. We provide expert advice on every aspect of your business needs.

To protect the legitimate rights and interests of our clients and achieve the best results, we provide legal advice and participate in civil lawsuits related to business, labor, marriage, family, and inheritance.

■ Contact us now

For reliable and effective legal advice, please contact HANKUK LAW FIRM now. We are committed to providing you with the best possible answers and our team of experienced lawyers has extensive knowledge in many legal fields. We are always here to provide the most competent and dedicated support, whether you are dealing with contractual issues, commercial disputes or need guidance on foreign investment. HANKUK LAW FIRM is honored to have assisted hundreds of domestic and international clients in skillfully resolving complex legal issues as their trusted legal partner. Do not let legal issues hinder your success. Let us accompany you towards legal achievement and comfort. For prompt guidance and support to ensure your rights are always maintained at the highest standards, contact HANKUK LAW FIRM now.

■ Contact Hankuk Law Firm

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