Regulations on activities of sending Vietnamese employees to work abroad under contracts

On December 10th 2021, The Government issued Decree No.12/2021/ND-CP guiding on some articles and measures to implement the Law on Vietnamese employees working abroad under contracts (hereinafter referred to as “Decree 112”) with the following notable contents:

1. The level of margin deposit for enterprises providing services to send employees to work abroad

Vietnamese enterprises providing services to send employees to work abroad under the contract must deposit two billion dongs at a bank, a foreign bank branch legally established and operating in Vietnam. For the enterprises entrusting the task to its branch(es) to carry out the services activities of sending employees to work abroad must deposit an additional five hundred million dongs for each assigned branch.

About the ceiling margin deposit of the employees, Decree 112 stipulates that the service enterprises and the employees can agree on the bank to receive the margin deposit and the margin deposit, in which the margin deposit amount does not exceed the ceiling specified in Appendix II of this Decree and must be clearly stated in the contract of sending Vietnamese workers to work abroad.  Specifically, for the Taiwan market (China), all professions except seafarers of offshore fishing vessels and transport ships, the ceiling deposit for the employees is 12 million dongs; for the Korean market is 36 million dongs.

2. Conditions for the enterprises providing service of sending the employees to work abroad as domestic workers in some specific cases

For the enterprises providing service of sending the employees to work abroad as domestic employees, the Decree stipulates that the service enterprises have to maintain some conditions: (i) the number and conditions of foreign language ability and experience the professional staffs on sending Vietnamese employees to work abroad; (ii) ensuring the employee has experience in working as a domestic helper abroad or has knowledge of domestic work and foreign language level to meet the requirements of the foreign party receiving employee under the guidance of the Ministry of Labor – Invalids and Social.

In the case of sending Vietnamese workers to work in Taiwan (China) and Japan, the requirements on the foreign language level of the professional staff are different, detailed in Clause 1, Article 12 and Clause 1, Article 15 of Decree 112.  Procedures for certifying a list of employees need to be done before sending employees to work abroad. Accordingly, the service enterprises must submit the list of employees to the Ministry of Labor, War Invalids and Social Affairs for certification.

Decree 112 takes effect from on January 1st, 2022.

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