On March 19, 2021, the Government issued Decree 23/2021/ND-CP guiding Clause 3, Article 37 and Article 39 of the Law on Employment regarding employment service centers and employment service enterprises (“Decree 23”).

Accordingly, Article 14 of Decree 23 has changed the conditions for granting an Employment Service License (“License“), including 3 main groups of conditions, as follows:

1. Having a location for the head office or branch for the employment service organization to be owned by the enterprise or leased stably under a contract of 03 years (36 months) or more.
2. The enterprise made a deposit of VND 300,000,000 (Three hundred million VND).
3. The legal representative of an enterprise providing employment services must satisfy the following conditions:

• Be an enterprise manager in accordance with the Law on Enterprises;
• Not falling into one of the following cases: being examined for penal liability, being detained, serving a prison sentence, serving an administrative handling measure at a compulsory detoxification establishment or a forced education institution, escaping from residence, having limited or incapable of civil acts, having difficulty in understanding, mastering acts, being banned by court from holding positions, banned from practicing or doing work related to employment services;

       4. Possessing a university or higher degree or having worked directly as a professional or managing employment services or providing labor for 02 years (24 months) or more within 05 consecutive years before applying for licensing.

Decree 23 replaces the corresponding provisions on licensing conditions at:

– Decree No. 52/2014/ND-CP regulating conditions and procedures for licensing employment service activities of employment service enterprises.

– Articles 10 and 12 of Decree No. 140/2018/ND-CP amending and supplementing Decrees related to business investment conditions and administrative procedures under the state management scope of the Ministry of Labor – Invalids and Social Affairs.

Decree 23 takes effect from June 1, 2021.

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