On December 14, 2020, the Government issued Decree 145/2020/ND-CP guiding the Labor Code on working conditions and labor relations. Accordingly, this Decree provides for the labor sublease, including the conditions for the grant of a labor outsourcing license.

Labor sublease operation license means a permit granted by the President of the People’s Committee of the province where the enterprise is headquartered to an enterprise established in accordance with the Law on Enterprises to conduct labor outsourcing.

Accordingly, enterprises that are entitled to labor outsourcing must satisfy the following conditions to be granted a license:

• The legal representative of the labor leasing enterprise shall:

1. Be an enterprise executive as prescribed by the Law on Enterprises;
2. Not have any criminal conviction;
3. Have at least 03 years (36 months) of working in labor dispatch or labor supply in the last 05 years before the application for licensing is submitted.

• The enterprise has paid a deposit of VND 2,000,000,000 (2 billion Vietnam dongs).

After being licensed, the labor leasing enterprise will be able to recruit, sign a labor contract with the employee, then transfer the employee to work and be subject to the direction of another employer, but still maintain the labor relationship with the enterprise that has entered into the labor contract.

This Decree takes effect from February 1, 2021.