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Order and procedures for granting a labor subleasing permit in Vietnam

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What is the procedure for granting a labor subleasing permit according to the regulations? How long will it take to process the procedure for granting a labor outsourcing license? This is a matter of concern to businesses performing labor outsourcing activities; to be able to comply with regulations; Avoid wasting time and money. Let’s find out with Lawyer X right here

Decree No. 145/2020/ND-CP guiding the implementation of the Labor Code 2019

Labor Code 2019

What is labor sublease?

According to the provisions of Article 52 of the Labor Code 2019; Labor subleasing means that an employee enters into a labor contract with an employer who is a labor outsourcing enterprise (labor supply); then the employee is transferred to work; and under the control of another employer; but still maintain an employment relationship with the employer who has entered into a labor contract.

Regulations on labor subleasing

Labor outsourcing enterprises are established in accordance with the Law on Enterprises; be granted a license to operate the labor subleasing; recruiting and entering into labor contracts with employees; then transfer workers to work; and under the control of another employer; but still maintain labor relations with enterprises that have entered into labor contracts.

Accordingly, the outsourcing party is an enterprise, agency, organization, cooperative, household or individual with full civil act capacity; employing outsourced workers to do the work; according to the list of jobs that are allowed to re-hire workers for a certain period of time.

Conditions of the sub-contracted worker must be that the employee has full civil act capacity; be recruited by the leasing enterprise; and enter into labor contracts; then switch to work and be under the control of the sub-employee.

Procedures for granting a labor subleasing permit

Article 25 of Decree 145/2020/ND-CP stipulates the order and procedures for licensing:

Firstly, An enterprise shall send a dossier as prescribed in Article 24 of this Decree to the Department of Labor, War Invalids and Social Affairs where the enterprise’s head office is located to apply for a license.

Secondly, After fully examining the papers specified in Article 24 of this Decree; The Department of Labor, War Invalids and Social Affairs shall issue a receipt stating the date, month and year of receipt of the application for a permit.

Next, Within 20 working days from the date of receipt of the security dossier as prescribed; Department of Labor – Invalids and Social Affairs verify; submit to the President of the People’s Committee of the province to grant a license to the enterprise.

In case the dossier is not guaranteed according to regulations; within 10 working days from the date of receiving the dossier; The Department of Labor, War Invalids and Social Affairs has written requests for enterprises to complete the application.

Finally, Within 07 working days from the date of receiving the dossier submitted by the Department of Labor, War Invalids and Social Affairs; President of the People’s Committee of the province to consider; licensing for enterprises; in case the license is not granted, the enterprise shall reply in writing, clearly stating the reason for not granting the license.

Thus, Pursuant to the above provisions; If the application is complete and valid, the licensing procedure takes about 27 days; in case of additional requirements; When completing the application, the licensing procedure takes more than 1 month (about 37 days).

Authority to issue labor subleasing permits

According to the provisions of Article 22 of Decree 145/2020/ND-CP, there are provisions:

“The President of the People’s Committee of the province where the enterprise’s head office is located has the authority to grant, extend, re-issue and revoke licenses for enterprises.”

Thus, the People’s Committee of the province where the enterprise’s head office is located has the authority to issue a permit for outsourcing labor.

Dossier of application for a license to hire labor

Enterprises performing labor outsourcing activities, the dossier of application for a labor outsourcing license according to Decree 145/2020/ND-CP includes:

  1. The enterprise’s written application for a license is made according to the form provided in this Decree.
  2. A curriculum vitae of the legal representative of the enterprise, made according to the form provided in this Decree.
  3. Judicial record card No. 1 according to the provisions of law on the judicial record of the legal representative of the enterprise. In case the representative is a foreigner who is not subject to the issuance of the No. 1 judicial record card, it shall be replaced with a judicial record card in the country of nationality.
  1. The document proving the period of direct experience as a professional or manager in labor sub-leasing or labor supply of the legal representative of the enterprise specified at Point c, Clause 1, Article 21 of this Decree is one of the following text types:

a) A certified true copy of the original labor contract or work contract or the decision on recruitment, appointment and assignment of duties of the legal representative of the enterprise;

b) A certified true copy of the original appointment decision (for persons working under the appointment system) or the document recognizing the election results (for persons working under the electoral system) of the representative. according to the law of the enterprise or a copy of the enterprise registration certificate (for the case of the legal representative of the sub-lease or labor supply enterprise).

Note: Documents specified at Points a and b of this Clause that are foreign documents must be translated into Vietnamese, authenticated and consularly legalized in accordance with law.

  1. Certificate of deposit for labor outsourcing, made according to the form attached to this Decree.

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Frequently asked questions

Term of labor subleasing permit?

The maximum license term is 60 months. The license is renewed many times, each extension is for a maximum of 60 months.
In case a license is re-issued, the term of the re-issued license is equal to the remaining term of the previously issued license.

Conditions for issuance of a labor subleasing permit?

In order to be granted a license, the legal representative of an enterprise performing labor outsourcing activities must satisfy the following conditions:
– Being the manager of an enterprise according to the provisions of the Law on Enterprises;
No criminal records;
– Having worked directly as a specialist or manager in labor subleasing or labor supply for full 03 years (36 months) or more within 05 consecutive years before applying for a license.
– The enterprise has made a deposit of VND 2,000,000,000

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