Some guidelines for sub-lease of job
VGP- Foreign enterprises have to prove that their main business line is the sub-lease of labor
Question: What are the new regulations on sub-lease of jobs as stipulated in Circular 01/2014/TT-BLDTBXH dated January 8, 2014 (Circular 01).
Answer: Circulate 01 of the Ministry of Labor – Invalids and Social Affairs guides Decree 55/2013/ND-CP providing further details on the implementation of paragraph 3 of Article 54 of the Labor Code of the licensing the activity of labor sub-lease, the deposit and list of works permitted to be done in sub-lease of labor.
As a rule, foreign enterprises may enter into joint venture with Vietnamese enterprises to trade in the sub-lease of labor. In addition to the meeting of capital requirements, foreign enterprises have to prove that their main business line is the sub-lease of labor.
To prove that this condition is met, foreign enterprises need to provide a certificate of business registration of the enterprises; sub-lease license issued by the competent authority of the host country; documents issued by the competent authorities of the host country.
Foreign enterprises should provide contracts to which they have conducted the business activity of sub-lease of labor, in which the operating time of labor sub-lease has been granted in accordance with local regulations is represented and related to documents (if any).
According to Decree 55, the license has term not exceeding 36 months, and can be extended up two times, each time not exceeding 24 months.
Circular 01 further instructs for cases in which the license has been extended 02 times and the lease enterprise continues to have the demand of labor sub-lease after the expiry of License, the enterprise would conduct the procedures for suggesting the granting of new License to continue operating the labor sub-lease.
For enterprises conducting production and business activities in the form of the provision of services, where employees have been employed and then transferred to the business of another employer to work and are not subject directly or indirectly to the executive management of the enterprise to comply with the regulations on internal labor regulations, collective labor agreements, working time, rest tie, industrial safety and hygiene, labor discipline and material responsibility of the employer during the course of providing services, the enterprise is not required to get the license to conduct that business activity.
This Circular takes effect from March 1, 2014./.
