REQUIREMENTS, AUTHORITY AND PROCEDURES OF THE LICENSE FOR OUTSOURCING SERVICES

Posted date: 14/04/2020

[1] LEGAL BASIS

- Labor code 2012 dated June 18, 2012;

- Decree No. 29/2019/NĐ-CP dated March 20,2019 of the Government on

detail the implementation of clause 3 article 54 of the labor code on licensing outsourcing services, deposit payment, and list of permissible outsourced jobs.

[2] LICENSING REQUIREMENTS –( According to Article 5 of decree No. 29/2019/NĐ-CP)

1. The legal representative of the enterprise applying for the license for the outsourcing service must satisfy all of the following requirements:

a) Being the manager of the enterprise;

b) Having no criminal records;

c) Having working experience in the field of outsourcing or labor supply of at least 03 years (or 36 months) or more during the last 05 years preceding the date of submission of the application for the license.

2. The enterprise has made payment of deposit of VND 2,000,000,000 (two billion) at a commercial bank or a foreign bank’s branch duly established and operating in Vietnam.

[3] PROCEDURES OF THE LICENSE FOR OUTSOURCING SERVICES

a) Deposit procedure

According to Article 14 of Decree No. 29/2019/NĐ-CP, “Deposits shall be used for payment of wage, benefits, social insurance, health insurance, unemployment insurance, and occupational accident and disease insurance premiums, or compensation for the outsourced employees in case the outsourcer breaks the labor contracts signed with these employees or cause damage to them due to the outsourcer’s failure to ensure legitimate rights and interests of the outsourced employees.”

b) Procedures of the license for outsourcing services

*Application for the license for outsourcing service –( According to Article 8 of Decree No. 29/2019/NĐ-CP)
1. The application form for the license for outsourcing service made by the enterprise;

2. The copy of the enterprise registration certificate as regulated by Law;

3. The resume of the legal representative of the enterprise;

4. The judicial record card No. 1 according to he law on judicial record of the enterprise’s legal representative. If the enterprise’s legal representative is a foreigner who is not the subject of Vietnam's judicial record card, the judicial record card No. 1 shall be replaced by a judicial record card or document confirmation that the foreign worker is not a criminal or prosecuted for criminal liability of the foreign country.

The above-mentioned documents shall be issued within the last 06 months before the date of application submission.

5. Document proving the working experience of the enterprise’s legal representative as regulated in Point c Clause 1 Article 5 of this Decree, which may be:

a) The certified copy of the original copy of the labor contract or the employment contract of the enterprise's legal representative;

b) The certified copy of the original copy of the appointment decision (for people working under the appointment regime) or a document certifying the election results (for people working under the election system) of the enterprise's legal representative.

6. The certificate of payment of deposit of outsourcing services.

* Procedures for issuance of the license for outsourcing service –( According to Article 9 of Decree No. 29/2019/NĐ-CP)

- The enterprise shall submit an application for license for outsourcing service which includes the documents prescribed in Article 8 hereof to the Department of Labor, War Invalids and Social Affairs of the province or central-affiliated city (hereinafter referred to as “Provincial Department of Labor, War Invalids and Social Affairs) where the enterprise is headquartered to apply for a license.

- The application for license for outsourcing service shall be received if it includes all documents specified in Article 8 hereof. After receiving the application, the Provincial Department of Labor, War Invalids and Social Affairs shall issue a receipt specifying the date of receipt to the enterprise.

- Within 20 working days from the receipt of a complete application, the Provincial Department of Labor, War Invalids and Social Affairs shall examine and appraise the received application, and submits to the Chairman of the Provincial People’s Committee to issue the license for outsourcing service to the qualified enterprise.

If the received application is deemed unsatisfactory, within 10 working days from the receipt of the application, the Provincial Department of Labor, War Invalids and Social Affairs shall request the enterprise in writing to complete it.

-Within 07 working days after receiving a dossier submitted by the Provincial Department of Labor, War Invalids and Social Affairs, the Chairman of the Provincial People’s Committee shall consider issuing the license for outsourcing service to the enterprise; if the application is refused, the enterprise shall be provided with written reasons for such refusal.

* Authority to license for outsourcing service –( According to article 6 of Decree no. 29/2019/NĐ-CP)

Chairman of the People’s Committee of the province or central-affiliated city (hereinafter referred to as “Chairman of Provincial People's Committee”) where the headquartered of the enterprise is located shall be competent to issue the license for outsourcing service from that enterprise.

Above is FDVN Law Firm's opinion for your request of consultant based on studying the relevant legal provisions. Hopefully, FDVN's advice would be helpful to you.

Legal expert: Hoang Tran Ngoc Anh

FDVN Law Firm

Lawyers in Da Nang:

99 Nguyen Huu Tho, Quan Hai Chau, Da Nang city

Lawyers in Hue:

336 Phan Chu Trinh, Hue City, Thua Thien Hue

Lawyers in Phu Quoc:

65 Hung Vuong, Duong Dong town, Phu Quoc island district

Lawyers in Quang Ngai:

359 Nguyen Du, Quang Ngai City, Quang Ngai Province.

Website: www.fdvn.vn www.tuvanphapluatdanang.com

Email: fdvnlawfirm@gmail.com luatsulecao@gmail.com

Phone: 0935 643 666 - 0906 499 446

Fanpage: https://www.facebook.com/fdvnlawfirm/