Decree No. 55/2013/ND-CP detailing the implementation of Clause 3, Article 54 of the Labor Code on granting permission for labor dispatch activities, guarantee deposits, and the list of jobs that can be dispatched.

DECREE

Detailed regulations on implementing Clause 3 of Article 54 ofLabor Code the Labor Code regarding issuance of permits for labor dispatch activities, labor leasing,deposit and list of jobs to be performed through labor leasing.

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Pursuant to the Law on Organization of the Government dated December 25, 2001;

Pursuant to the Enterprise Law dated November 29, 2005;

Based on the Labor Code dated June 18, 2012;

Decree No. 07/2021/NĐ-CP

The Government issues this Decree providing detailed regulations on implementing Clause 3 of Article 54 of the Labor Code concerning issuance of permits for labor leasing activities, deposit requirements, and the List of jobs to be performed through labor leasing.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Decree stipulates the issuance of permits for labor leasing activities, deposit requirements for labor leasing enterprises, and the List of jobs to be performed through labor leasing.

Article 2. Applicability

1. Labor leasing enterprise.

2. Employer leasing labor.

3. Leased worker.

4. Other agencies, organizations, and individuals related to labor leasing activities.

Article 3. Explanation of Terms

In this Decree, the following terms are understood as follows:

1. Labor leasing enterprise is an enterprise established and operating in accordance with the law, which hires workers under labor contracts but does not directly employ them, instead supplying its own workers to temporarily work for other employers (hereinafter referred to as the leasing enterprise). Employer leasing labor is

2. an enterprise, agency, organization, cooperative, household, or individual requiring the use of labor for a specific period and leasing labor from a labor leasing enterprise to fill temporary shortages of workers. Leased worker is

3. a worker with full capacity for civil acts who has signed a labor contract with the labor leasing enterprise and is leased by the labor leasing enterprise to work under the management of the employer leasing labor for a specific period. Article 4. Prohibited actions in labor leasing activities

1. For labor leasing enterprises:

a) Paying wages and benefits to leased workers lower than those agreed upon with the employer leasing labor;

b) Lending or borrowing the Permit for Labor Leasing Activities to another enterprise for labor leasing activities;

c) Charging fees from leased workers or conducting labor leasing without their consent;

d) Conducting labor leasing for jobs not listed in the List of Jobs to be Performed Through Labor Leasing attached as Appendix V to this Decree or exceeding the lease term specified in Article 26 of this Decree;

e) Engaging in labor leasing activities between the labor leasing enterprise and another enterprise within a parent company - subsidiary company structure or economic group where the labor leasing enterprise is a member company.

2. For employers leasing labor:

a) Charging fees from leased workers;

b) Leasing workers already hired to another employer;

c) Using leased workers for jobs not listed in the List of Jobs to be Performed Through Labor Leasing attached as Appendix V to this Decree or using leased workers beyond the lease term specified in Article 26 of this Decree.

CONDITIONS, PROCEDURES, AUTHORITY FOR ISSUING LICENSES

Chapter II

FOR LABOR LEASING ACTIVITIES

ACTIVITY OF SUBLETTING LABOR

Section 1

CONDITIONS FOR GRANTING THE BUSINESS LICENSE FOR TEMPORARY EMPLOYMENT AGENCY SERVICES

SUBLEASING LABOR

Article 5. Conditions for granting the business license for temporary employment agency services

A business shall be granted a business license for temporary employment agency services when it meets all of the following conditions:

1. Has deposited a guarantee of VND 2,000,000,000;

2. Ensures the statutory capital as prescribed in Article 6 of this Decree;

3. Has an office as prescribed in Article 7 of this Decree;

4. The head of the business ensures the conditions as prescribed in Article 8 of this Decree.

Article 6. Statutory Capital Conditions for Temporary Employment Agency Services

1. The statutory capital for the business operation of temporary employment agency services is VND 2,000,000,000.

The enterprise must maintain its registered charter capital at no less than the statutory capital throughout its operational period.

2. Documents proving the statutory capital conditions as stipulated in Clause 1 of this Article include:

a) Minutes of the capital contribution of the founding shareholders for joint-stock companies or of the founding members for limited liability companies with two or more members; the decision on capital transfer by the owner for a single-member limited liability company; the investment capital registration form of the owner for a private enterprise and for a single-member limited liability company where the owner is an individual;

b) For the portion of capital contributed in cash, there must be a confirmation letter from a commercial bank permitted to operate in Vietnam, where the enterprise deposits the contributed capital, regarding the amount of capital deposited;

c) For the portion of capital contributed in kind, there must be a valuation certificate issued by a valuation organization in Vietnam regarding the valuation result of the assets contributed as capital. The certificate must remain valid until the date of submission of the application dossier to the competent business registration authority.

3. For foreign enterprises jointly operating with domestic enterprises, the following conditions must be met:

a) It must be a specialized enterprise engaged in the business of temporary employment agency services, with a capital and total asset value of the enterprise of VND 10,000,000,000 or more;

b) It must have experience operating in the field of temporary employment agency services for five years or more;

c) It must have a certificate from the competent authority of the home country certifying that the enterprise and the representative of the capital contribution of the enterprise have not violated the laws of the home country or related countries.

These documents must be translated into Vietnamese and certified and legalized by the diplomatic mission or consular office of Vietnam abroad according to Vietnamese law.

Article 7. Conditions for the Location of the Head Office, Branches, and Representative Offices of Temporary Employment Agencies

The location of the head office, branches, and representative offices of temporary employment agencies must be stable and have a term of at least two years; if the property belongs to the person named in the business registration, then in the application dossier for issuance, reissuance, or extension of the business license for temporary employment agency services, there must be valid documents, and if it is rented, there must be a lease agreement with a term of at least two years.

Article 8. Conditions for the Head of the Business, Branches, and Representative Offices of Temporary Employment Agencies

1. Having full civil capacity and a clear record;

2. Having at least three years of work experience in the field of temporary employment agency services;

3. In the three consecutive years prior to applying for the business license for temporary employment agency services, not being the head of a business whose business registration certificate has been revoked or not committing the act of falsifying the application dossier for issuance, reissuance, or extension of the business registration certificate or the business license for temporary employment agency services again.

Article 9. Changing the Manager, Key Positions, and Registered Capital of a Labor Dispatch Enterprise

When changing the manager, key positions, or the registered capital, the labor dispatch enterprise must comply with the provisions of the Enterprise Law and related documents, ensuring the conditions stipulated in Article 5 of this Decree; at the same time, it must submit a written notice to the Department of Labor, Invalids, and Social Affairs within ten working days before the change takes place.

Article 10. Notification of Location, Operating Area, Start Date of Operation, and Managers of a Labor Dispatch Enterprise

1. Within ten working days prior to the start date of labor dispatch activities, the labor dispatch enterprise must submit a written notification to the Department of Labor, Invalids, and Social Affairs where its headquarters or branch is located, including information on the location of the headquarters, operating area; start date of operation; along with a copy of the labor dispatch business license and a list of managers and key position holders of the labor dispatch enterprise.

2. In case of relocating the headquarters, branch, or representative office of the labor dispatch enterprise, the head must send a written notice to the Department of Labor, Invalids, and Social Affairs, the hired workers, and the hiring party regarding the new location within fifteen working days before the relocation occurs.

PART II

PROCEDURES FOR ISSUING AND REVOKING THE LICENSE

ACTIVITY OF SUBLETTING LABOR

Article 11. Documents for Applying for Issuance, Reissuance, and Extension of the Labor Dispatch Business License

1. The documents for applying for issuance of the labor dispatch business license include:

a) A request for issuance of the labor dispatch business license according to the form attached as Appendix II to this Decree;

b) A document proving compliance with the statutory capital requirements as stipulated in Article 6 of this Decree;

c) A certificate confirming the deposit has been made as required under Article 16 of this Decree;

d) A business registration certificate in accordance with the Enterprise Law;

đ) A curriculum vitae of the enterprise's head as prescribed by law;

e) A certificate proving compliance with the location requirements as stipulated in Article 7 of this Decree.

2. The documents for applying for reissuance or extension of the labor dispatch business license include those specified in Points a, b, c, đ, and e of Clause 1 of this Article.

Article 12. Validity Period of the Labor Dispatch Business License

1. The labor dispatch business license has a maximum validity period of thirty-six months.

2. In cases of extending the labor dispatch business license, the validity period shall not exceed twenty-four months; the number of extensions shall not exceed two times.

The reissued labor dispatch business license shall have a validity period not exceeding that of the previously issued license.

Article 13. Authority to Issue, Reissue, Extend, or Revoke the Labor Dispatch Business License

1. The Minister of Labor, Invalids, and Social Affairs issues, reissues, extends, or revokes the labor dispatch business license.

The labor dispatch enterprise submits the documents as prescribed in Article 11 of this Decree to the Ministry of Labor, Invalids, and Social Affairs to apply for issuance, reissuance, or extension of the labor dispatch business license.

2. The Minister of Labor, Invalids, and Social Affairs decides on issuing, reissuing, or extending the labor dispatch business license based on the contents stipulated in Section I Chapter II of this Decree and other relevant regulations within thirty working days for new issuance, twenty working days for reissuance and extension, from the date of receiving complete and valid documents.

In cases where issuance, reissuance, or extension of the labor dispatch business license is denied, the Minister of Labor, Invalids, and Social Affairs will respond in writing and specify the reasons.

Article 14. Revocation of the Business License for Labor Dispatch

1. The labor dispatch enterprise shall have its Business License for Labor Dispatch revoked in any of the following cases:

a) Failure to fulfill the obligations of an enterprise as prescribed by law and this Decree;

b) False declaration about conditions as stipulated in Article 5 of this Decree or forgery of documents as prescribed in Article 11 of this Decree; alteration of the content of the Business License for Labor Dispatch;

c) Violation of any provision under Clause 1 of Article 4 of this Decree;

d) Being administratively penalized three times within twelve months for violation of labor laws;

đ) Failure to replenish the deposit amount within the time limit specified in Article 18 of this Decree;

e) Ceasing operations;

g) Not operating for six months from the date the Business License for Labor Dispatch was issued;

h) Having its Enterprise Registration Certificate revoked.

2. In the event that the labor dispatch enterprise has its Business License for Labor Dispatch revoked, not reissued, or not renewed, the labor contracts already signed between the dispatched workers and the labor dispatch enterprise shall continue to be implemented, except as provided for in Article 36 of the Labor Code.

Chapter III

DEPOSIT AND MANAGEMENT OF THE DEPOSIT OF LABOR DISPATCH ENTERPRISES

SUBLEASING LABOR

Article 15. Use of Deposit

The deposit shall be used to pay wages or compensate dispatched workers in the event that the labor dispatch enterprise breaches the labor contract with the dispatched worker or causes damage due to failure to ensure their lawful rights and interests.

Article 16. Payment of Deposit and Procedures for Payment of Deposit

1. The labor dispatch enterprise must deposit VND 2,000,000,000 at the commercial bank where the labor dispatch enterprise maintains its main transaction account (hereinafter referred to as the bank).

2. The labor dispatch enterprise shall follow the bank's regulations and comply with the law when handling the deposit payment procedures. Upon completion of the procedures and payment, the bank shall issue a Certificate of Business Deposit for Labor Dispatch to the enterprise.

Article 17. Interest on Deposit

The labor dispatch enterprise shall enjoy interest on the deposit according to the agreement with the bank.

Article 18. Supplementing the Deposit

1. Within thirty days from the date funds are withdrawn from the deposit account, the labor dispatch enterprise must fully supplement the deposit as prescribed in Article 16 of this Decree.

2. After the deadline set out in Clause 1 of this Article, if the labor dispatch enterprise fails to fully supplement the deposit, the bank shall notify the Ministry of Labor, Invalids and Social Affairs.

Article 19. Refund of Deposit

The labor dispatch enterprise may be refunded the deposit in the following cases:

1. Notification from the Minister of Labor, Invalids and Social Affairs regarding the non-renewal, issuance, or revocation of the Business License for Labor Dispatch;

2. Decision by the Minister of Labor, Invalids and Social Affairs to revoke the Business License for Labor Dispatch.

Article 20. Withdrawal of Deposit

1. The deposit may be withdrawn in the following cases:

a) The labor dispatch enterprise is unable to pay wages to dispatched workers within sixty days from the wage payment due date;

b) The labor dispatch enterprise is unable to compensate or does not compensate dispatched workers as stipulated in Article 15 of this Decree within sixty days from receiving the decision of the Labor Inspectorate;

c) Failure to pay, delay in paying social insurance, health insurance, unemployment insurance for three consecutive months.

2. Procedures for withdrawing and refunding the deposit of the labor dispatch enterprise shall be carried out in accordance with the bank's regulations and relevant laws.

3. The bank shall not allow the labor dispatch enterprise to withdraw the deposit without a written opinion from the Minister of Labor, Invalids and Social Affairs as prescribed in Article 21 of this Decree.

Article 21. Competence and responsibility of state management agencies for labor regarding the use of deposit money

1. The Minister of Labor, Invalids and Social Affairs shall permit leasing enterprises to withdraw deposit money to implement the provisions stipulated in Article 15 of this Decree.

2. The People's Committee of the province shall direct specialized agencies to supervise the payment and compensation to leased workers of leasing enterprises according to the provisions stipulated in Article 15 of this Decree.

Article 22. Responsibilities of banks

1. To comply with all regulations on opening deposit accounts, depositing deposit money, using deposit accounts of leasing enterprises, and related regulations concerning such accounts.

2. To freeze the amount of deposit money and calculate interest on the balance of deposit money at the agreed deposit interest rate with leasing enterprises. At the end of each month, calculate and pay interest to the enterprise, and record it in the deposit account or pay the enterprise in cash.

3. To issue a Certificate of Deposit Money for Leasing Labor to enterprises according to the model attached as Appendix III to this Decree.

4. In cases where leasing enterprises violate labor contracts with leased workers or cause damage due to failure to ensure their legitimate rights and interests, and there is a decision from the Minister of Labor, Invalids and Social Affairs requiring the enterprise to pay compensation, the bank shall deduct from the deposit account to ensure that the payment and compensation are carried out, after deducting banking service fees.

5. To request leasing enterprises to supplement deposit money according to the provisions of Clause 1, Article 18 of this Decree within thirty days from the date when money was deducted from the deposit account for payment and compensation. After this period, if the leasing enterprise does not fully replenish the deposit money, the bank must notify the Ministry of Labor, Invalids and Social Affairs.

6. Quarterly, no later than the 15th day of the first month of each quarter, banks receiving deposit money for leasing labor must report to the Ministry of Labor, Invalids and Social Affairs and the State Bank of Vietnam on the situation of receiving deposit money for leasing labor in their banking system according to the model attached as Appendix IV to this Decree.

Chapter IV

LABOR LEASED WORK

Article 23. Purpose of labor leasing

1. To temporarily meet sudden increases in manpower needs during a specific period.

2. To replace workers during maternity leave, work-related accidents, occupational diseases, or while performing civic duties, or reducing working hours.

3. To have a need for highly skilled technical workers.

Article 24. Cases where labor leasing is not allowed

1. Enterprises experiencing labor disputes, strikes, or replacing workers who are exercising strike rights or resolving labor disputes.

2. Leasing enterprises failing to specifically agree on liability for work-related accidents and occupational diseases of leased workers with the hiring party.

3. Replacing workers who have been dismissed due to changes in organizational structure, technology, mergers, consolidations, divisions, or for economic reasons.

4. Leasing workers for jobs in harsh living conditions as listed by the Minister of Labor, Invalids and Social Affairs and the Minister of Health, except where the worker has lived in that area for at least three years; the leased job falls within the List of Heavy, Hazardous, and Particularly Heavy, Hazardous Jobs issued by the Minister of Labor, Invalids and Social Affairs.

Article 25. List of jobs to be performed under labor dispatch services

1. The jobs to be performed under labor dispatch services are specified in Appendix V attached to this Decree.

2. Labor dispatch services may only be carried out for jobs listed in the said List and in compliance with the provisions of Articles 23 and 24 of this Decree.

3. The Ministry of Labor, Invalids and Social Affairs shall take the lead and coordinate with relevant agencies to review and submit to the Government Prime Minister proposals for amending and supplementing the List specified in Appendix V attached to this Decree.

Article 26. Term of labor dispatch services

1. The maximum term of labor dispatch services shall not exceed twelve months.

2. Upon expiration of the term stipulated in Clause 1 of this Article, the dispatch enterprise shall not continue to dispatch the dispatched worker to the user enterprise if the term of dispatch has just expired.

Chapter V

IMPLEMENTING PROVISIONS

Article 27. Responsibilities of the Ministry of Labor, Invalids, and Social Affairs

1. Implement state management over the field of labor dispatch services throughout the country.

2. Inspect compliance with labor laws at dispatch enterprises and user enterprises.

3. Issue, reissue, extend or revoke the Business License for labor dispatch services.

4. Specify and guide the annual and extraordinary reporting system of dispatch enterprises.

Article 28. Responsibilities of the People's Committee at the Provincial Level

1. Guide the implementation of the provisions of this Decree regarding the issuance of business licenses for labor dispatch services, the deposit requirement, and the jobs permitted to be performed under labor dispatch services.

2. Organize training and guidance on the implementation of this Decree and related regulations.

3. Monitor, compile and report periodically every six months and annually to the Ministry of Labor, Invalids and Social Affairs on the situation of labor dispatch services at enterprises, agencies, and organizations within their jurisdiction.

1. This Decree takes effect from July 15, 2013.

2. In cases where a business license for labor dispatch services is not issued, reissued, or extended, the dispatch enterprise currently operating labor dispatch services must ensure the rights and legitimate interests of the dispatched workers in accordance with the provisions of labor laws.

Article 30. Responsibility for Implementation

1. The Minister of Labor - Invalids and Social Affairs shall be responsible for guiding the implementation of this Decree.

2. The Governor of the State Bank of Vietnam is responsible for guiding the deposit requirement and managing the deposit funds of dispatch enterprises.

3. Ministers, Heads of ministerial-level agencies, Heads of agencies under the Government, Chairpersons of provincial People's Committees directly under the Central Government are responsible for implementing this Decree./.