The procedure for the issuance of a license for the labor dispatch

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The procedure for the issuance of a license for the labor dispatch
Posted on: 06/03/2024

    1. What is labor dispatch and the License for labor dispatch?

    Under Clause 1 Article 52 of the Labor Code 2019, labor dispatch is a situation where the employee enters into an employment contract with an employer who is a labor dispatch enterprise, and then the employee is dispatched to work under the supervision of another employer, but still maintains the labor relationship with the labor dispatch enterprise.

    The above activity is subject to a conditional business line, which requires obtaining a labor dispatching License in order to operate. Such license must be issued by a competent authority.

    2. Overview of the procedure

    Order

    Category

    Content

    1

    Implementing agency

    The Provincial Department of Labor, War invalids and Social Affairs (“DOLISA”) where the enterprise is located.

    2

    Application method

    The enterprise submits the application to the DOLISA in the following methods:

    • In-person application
    • Online application (for localities that have implemented this method);
    • Application by mail.

    Currently, Ho Chi Minh City only accepts applications in person or by mail.

    3

    Application components[1]

     The enterprise shall submit an application comprising:

    a. Application form according to Form No. 05/PLIII in Appendix III attached to Decree 145/2020/ND-CP;

    b. The self-declaration resume of the legal representative of the enterprise according to Form No. 7/PLIII in Appendix III attached to Decree 145/2020/ND-CP;

    c. Court record No. 1 of the legal representative. If the legal representative is a foreigner, he/she may use the judicial record of his/her home country; (Note: These documents must be issued within 06 months prior to the filing of the application. Documents in foreign languages must be translated into Vietnamese, notarized and consular legalized as required by law)

    d. One of the following documents:

    • A certified copy of the employment contract or the decision to hire, appoint or assign the duties of the legal representative of the enterprise;
    • An authenticated copy of the decision on appointment (for those who work under the appointment regime) or the document recognizing the election result (for those who work under the election regime) of the legal representative or a copy of the enterprise registration certificate (for those who are the legal representative of the labor dispatch or labor supply enterprise).

    (Note: The above documents if falling within the case of foreign documents must be translated into Vietnamese, authenticated and consular legalized as prescribed by law)

    e. The certificate of receipt of the deposit for engaging in labor dispatch activities according to Form 01/PLIII in Appendix III attached to Decree 145/2020/ND-CP.

    4

    Charges

    No charges applicable

    5

    Result[2]

    The Labor Dispatch License

     

    3. Conditions for an enterprise to be licensed

     

    Conditions on the legal representative[3]

    The legal representative of the enterprise must meet the following conditions:

    1. Being the manager of an enterprise under the Law on Enterprise;

    2. Not having been convicted;

    3. Have worked directly as a specialized agent or a manager in the field of labor dispatch or labor supply for 03 years (36 months) or more during the previous 05 consecutive years before applying for the license.

    The enterprise’s conditions[4]

    Must have made a deposit of VND 2,000,000,000 (two billion Vietnamese dong) with a commercial bank in Vietnam or a branch of a foreign bank legally established and operating in Vietnam

     

    4. Order of the procedures 


    [1] Article 24 of the Decree 145/2020/ND-CP.

    [2] Clause 2 Article 58 and Clause 3 Article 59 of the Decree 86/2018/ND-CP.

    [3] Clause 1 Article 21 of the Decree 145/2020/ND-CP.

    [4] Clause 2 Article 21 of the Decree 145/2020/ND-CP.