A reader who has email address as thanhtrungx @ xx  asked: My company registered to operate in labor outsourcing business. I would like to ask, What wereconditions to be licensed to operate outsourcing labor? Which cases were not allowed to outsource labor?

Lawyer Nguyen Thi Trang, YouMe Law Firm answers

Article 5 of Decree 29/2019 / ND-CP detailing the implementation of Clause 3, Article 54 of the Labor Code regarding the licensing of the outsourcing operation, the escrow and the list of jobs to be performed for Labor outsourcing effective from May 5, 2019 stipulates the conditions for licensing the outsourcing operation as follows:

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.

 Article 21 of Decree 29/2019 / ND-CP stipulates cases where outsourcing is not allowedas follows:

1. Either outsourcer or outsourcing party is involved in labor disputes, settling strikes, or replaces the outsourced employees who are exercising right of strike or settling labor disputes.

2. The outsourcer does not enter into an agreement with the outsourcing party about the responsibilities for paying occupational accident or disease compensations for the outsourced employees.

3. No approval is made by the outsourced employees.

4. The employees who are dismissed due to restructure, changes of technologies or merger, consolidation, division, separation of enterprises or due to economic reasons are replaced.

As such, the company is granted a license for labor outsourcing operation when it meets the conditions specified above.