On 20/032019, the Government issued Decree No. 29/2019/ND-CP detailing the implementation of Clause 3, Article 54 of the Labor Code on the licensing of labor sublease activities, the signing of Funds and job portfolios are performed for labor sublease. The Decree takes effect from 05/05/2019.

In particular, the Decree specifies the deposit of labor sublease enterprises. Accordingly, the deposit is used to pay salaries, allowances, social insurance, health insurance, unemployment insurance, labor accident insurance, occupational diseases or compensation for workers. sub-lease in case the leasing enterprise breaches the labor contract with the sublease employee or causes damage to the laborers due to the insecurity of the laborers’ legitimate rights and interests.

At the same time, the decree has specified two conditions for granting labor sublease licenses including:

For the legal representative of an enterprise, it is necessary to ensure that the enterprise manager does not have criminal records and has worked in the field of labor sublease or labor supply for at least 03 years. within 5 consecutive years before applying for a license;

• The enterprise has made VND 2 billion deposit in commercial banks or foreign bank branches established and operating legally in Vietnam.
• A dossier of application for a permit must contain all kinds of documents, including: An enterprise’s written request for a permit; Copy of Business Registration Certificate; The autobiographical resume of the legal representative of the enterprise according to the form; Judicial record card No. 1 in accordance with legal regulations on judicial records of the legal representative of the enterprise.

The sublease of labor temporarily meets the sudden increase in labor demand in a certain period of time; replacing workers during maternity leave, labor accident, occupational disease or having to fulfill civic obligations. In addition, the sublease of labor is also to meet the demand for high-skilled workers.