Conditions for granting a guest worker provision service license

Conditions for granting a guest worker provision service license

On 03 April 2020, the Government issued Decree 38/2020/ND-CP on detailing and guiding the implementation of a number of Articles of the Law on Vietnamese Guest Workers under Contract by the National Assembly on 29 November 2006. Accordingly, Decree 38/2020/ND-CP specifies conditions for granting a guest worker service provision license as follows:

  • Conditions on enterprise type and charter capital: enterprises providing guest worker service (hereinafter referred to as the service enterprises) must be limited liability companies, joint stock companies and partnerships that are established and operates in accordance with the Law on Enterprises and meet the conditions on (i) charter capital not less than VND five (5) billion, and having an owner, all members and shareholders as domestic investors in accordance with the 2014 Law on Investment.
  •  Scheme of sending workers abroad: the content of the scheme on sending workers to work abroad must comply with the Vietnamese law and the countries receiving the workers, be made according to Form No. 02, Appendix II attached to this Decree.
  •  The specialized section to provide necessary knowledge for workers:
    • Enterprises must have a specialized section to provide necessary knowledge for workers before sending them working abroad and to provide guest worker services.
    • The facilities for organizing necessary refresher courses for workers owned by the service enterprise or being hired stably by the service enterprise under a contract in accordance with the law and must at least meet the following conditions: (i) having sufficient studying and living rooms for 100 workers at the same time; (ii) the average area of a study room is 1.4 m2/student and the average area of a living room is 3.5 m2/student. Such a room must have the basic equipment for the studying and boarding activities.
    • A service enterprise that is granted the guest worker provision service license for the first time must make a plan on the organization of the specialized section in charge of providing the necessary knowledge for workers and activities of sending them abroad within 90 days of granting the license.
  •  Conditions on the professional staff and the executive leader
    • The professional staff must meet the following conditions:
      • Signing labour contracts with a definite or indefinite-term with the service enterprises.
      • Beyond the time of being examined for penal liability, executing a criminal sentence of a court and beyond a period of ban from holding a post, practicing a profession or a job.
      • Qualification from college or higher.
      • The professional staff exploiting the foreign market, recruiting and managing guest workers and provision of necessary knowledge must graduate in one of the following majors such as law, economic/business administration, foreign language and spend at least 01 year working in the field of sending guest workers abroad.
      • The executive leader is the legal representative of the enterprise and meets conditions as prescribed in Article 9.3 of the Law on Vietnamese Guest Workers under Contract and beyond the time of being examined for penal liability, executing a criminal sentence of a court and beyond a period of ban from holding a post, practicing a profession or a job.
  • Deposits: an enterprise will make a deposit of VND one (01) billion at a commercial bank that is permitted to operate in Vietnam. The service enterprise’s deposit will be used in accordance with Articles 22.1 and 22.2 of the Law on Vietnamese Guest Workers under Contract.

In addition, Decree 38/2020/ND-CP also stipulates the conditions for operating the service of sending guest workers into the territory of Taiwan; the conditions for operating the service of sending workers on skill internship to Japan; the conditions for operating the service of sending guest workers abroad as domestic workers in Middle East countries.

Decree 38/2020/ND-CP takes effect on 20 May 2020, replacing Decree 126/2007/ND-CP dated 01 August 2007 and annulling Decision 19/2007/QD-BLĐTBXH dated 18 July 2007.

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