Conditions for foreign workers to work in Vietnam. Procedures for foreign workers after having a work permit. Let us learn about this topic with LSX law firm as follow:
There are legal provisions that need to do when recruiting foreign workers to work in Vietnam. This article will clarify important conditions and notes for both employees and employers.
Conditions for foreign workers to work in Vietnam
Firstly, have professional qualifications, skills, and health suitable to the job requirements
Secondly, not being a criminal or being examined for penal liability in accordance with Vietnamese and international law.
Thirdly, have a work permit issued by a competent Vietnamese state agency
Moreover, employees who are foreign citizens working in Vietnam must comply with the Vietnam Labor Law, international treaties to which Vietnam is a contracting party, and other regulations protected by Vietnamese law.
Conditions for recruiting foreign workers to work in Vietnam
Domestic enterprises, agencies, organizations, individuals, and contractors may only recruit foreign workers to do management; executive director, expert, and technical work – positions in which foreign workers are not allowed to work. Vietnamese enterprises cannot meet the requirements of production and business
Before recruiting foreign workers to work in the Vietnamese territory, enterprises, agencies, organizations, individuals; and contractors must explain their demand for labor use and obtain written approval from competent state agency
Procedures for foreign workers after being granted a work permit
– For employers of foreign workers
Collect employee records as required by labor law and prepare for future tax returns and finalization
Declare the use of labor to the relevant agencies
Declare and pay health insurance according to the insurance law
In addition, from 2018 foreigners working in Vietnam under a work permit; may also have to pay social insurance according to the current rate, up to 32.5% in total.
Register for a personal tax code, deduct monthly tax, and pay on behalf of employees. For employees who have not worked for 12 months in the fiscal year; have direct income from abroad, or have many other sources of income; not authorized to make settlements for the company.
In particular, the time for completing the first year settlement procedures for foreign workers is a period of 12 consecutive months; from the first day they are present in Vietnam, and from 183 days or more.
Prepare and submit monthly, quarterly, and annual personal income tax declarations as prescribed.
Carry out procedures to cancel the work permit (and the attached temporary residence card) right after the termination of the labor contract.
– For individual foreign workers
Apply for a temporary residence card equivalent to a multiple-entry visa with a validity of 2 years
Register a temporary residence with the local police to have a valid temporary residence dossier as prescribed
Collect and store labor files for personal income tax declaration and finalization later on, such as labor contracts, appointment letters; confirmation letter, income, list of dependents, bill of school fees for children, tenancy agreement; proof of tax deduction for other sources of income…
If you are a resident with many sources of income in the country or have income from abroad; you must directly carry out finalization procedures with the local Tax Department to avoid administrative penalties in the future.
It should be noted that the procedures for applying for a work permit extension should be completed about 3 months before the expiration date
It is necessary to obtain a certificate of completion of all tax obligations before finishing work and leaving Vietnam
Finally, hope this article about Conditions for foreign workers to work in Vietnam is helpful for you!
Firstly, the work permit expires as prescribed in Clauses 1, 2, 3, 4, 5, 6 and 7 Article 156 of the Labor Code.
Secondly, employers or foreign workers fail to comply with the provisions of this Decree.
Thirdly, foreign workers in the process of working in Vietnam fail to comply with Vietnamese laws, affecting social security, order and safety.
A Work permit is a type of document issued by a competent authority in Vietnam to foreign workers when they meet certain conditions as prescribed by law.
Accordingly, Foreign workers with work permits are can work legally and have their rights and interests protected in labor relations/law.