Do the Chair of the Board of Directors is a foreigner need a work permit?
“Ms. Nguyen Minh Tu sent the following questions to LSX Lawfirm: My company is a Joint Stock Company; the chair of the Board of Directors is a foreigner. So, do I have to apply for a work permit for the chair of the Board of Directors? If I do not have to apply for a permit; do I have to do anything?” LSX Lawfirm will give you the answer in this article: “Do the Chair of the Board of Directors is a foreigner need a work permit?” as follows:
Legal grounds
The Labor Code 2019
Decree No. 152/2020/ND-CP
Decree No. 28/2020/MD-CP
Do the Chair of the Board of Directors is a foreigner need a work permit?
Regarding Ms. Minh Tu, the Editorial Board of LSX Lawfirm would like to answer as follows:
According to current regulations, in this case, Ms. Tu does not need to apply for a work permit for the company’s chair of the Board of Directors. Specifically, Clause 2, Article 154 of the Labor Code 2019 provides as follows:
Article 154. Work permit exemption for foreign employees in Vietnam
A foreign employee is not required to have the work permit if he/she:
2. Is the Chairperson of a joint-stock company a capital contribution value conformable with regulations of the Government.
The Ministry of Labor, War Invalids and Social Affairs or Departments of Labor, War Invalids and Social Affairs authorized to grant certification of exemption from work permit.
Accordingly, Ms. Tu will have to carry out procedures to confirm that the foreign worker is not subject to a work permit as follows:
Step 1: Prepare the application for certification
The application file shall comply with the provisions of Clause 3, Article 8 of Decree No. 152/2020/ND-CP, in this case, the following documents are required:
- Firstly; an application form for certification of exemption from work permit No. 09/PLI Appendix I hereto appended.
- Secondly; a fitness to work certificate.
- An acceptance of demand for foreign workers, unless it is not required.
- A valid certified true copy of passport as per the law.
- Finally; documents justifying that the foreign worker is exempt from work permit.
Any document such as the fitness to work certificate, the acceptance of demand for foreign workers, documents justifying that the foreign worker is exempt from work permit is 1 original or certified true copy; if a document is in a foreign language, it must be consularly legalized, translated into Vietnamese and certified; unless it is exempt from consular legalization under an international treaty to which the Socialist Republic of Vietnam and the concerned foreign country are signatories or under the principle of reciprocity or as per the law.
Step 2: Submit an application at the Department of Labor, War Invalids and Social Affairs
Then; the employer shall request the Ministry of Labor, War Invalids and Social Affairs or the Department of Labor, War Invalids and Social Affairs of the province; where the foreign worker is expected to work to certify that such foreign worker is eligible for exemption from a work permit at least 10 working days before he/she starts to work.
Related article: Which foreigners are not granted a work permit in Vietnam?
Step 3: Return the result confirm the Chair of the Board of Directors is a foreigner do not need a work permit
Accordingly; within 5 working days after receiving a duly completed application, then the Ministry of Labor, War Invalids and Social Affairs or Department of Labor, War Invalids and Social Affairs shall issue a certification of exemption from work permit. If the application is rejected, a written explanation is required.
Note: Fines ranging from VND 15,000,000 to VND 25,000,000 shall imposed on any foreign worker in Vietnam that commits one of the following violations when using work permits or written confirmations of their exemption from work permit requirements that have already become null and void.
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