Regulatory notes for enterprises operating in Employment services (Part 3)

In the context of an increasingly dynamic labor market, employment services play a crucial role in connecting employees with employers. However, due to their specific nature, enterprises operating in this sector must comply with strict legal regulations to ensure transparency, publicity, and the legitimate rights of all relevant parties. This article provides an overview of key regulatory notes on the responsibilities of employment service enterprises, their notification obligations, as well as typical administrative penalties for violations. 

I. Responsibilities of enterprises in employment service activities  

1. Publicly post a certified copy of the license or decision on license revocation at the enterprise’s headquarters.  
2. Monitor the employment status of employees introduced or supplied by the enterprise for at least 03 months or during the period of the labor contract (for labor contracts with a term of less than 03 months).  
3. Establish, update, and manage data on employees registered for consulting and job placement; employers registered for recruitment, and connect and share when state agencies request.   
4. If the enterprise performs part or all of the process of providing employment services by electronic means connected to the Internet, mobile telecommunication networks, or other open networks, it must comply with the provisions of the Decree 23/2021/NĐ-CP and the Government’s regulations on e-commerce.   
5. Formulate prices for employment services and publicly post them at the enterprise’s headquarters in accordance with the law.  
6. Periodically, every 06 months and annually, report on the situation of employment service activities according to Form No. 08, Appendix II issued with the Decree 23/2021/NĐ-CP, to the Department of Home Affairs of the locality where the enterprise is headquartered.   
7. The 06 – month report must be sent before June 20, and the annual report must be sent before December 20.  
8. Report promptly in case of incidents related to employment service activities to the competent state agency in the locality or upon request of the state management agency on employment service activities.  

II. Notification of employment service activities  

1. Within 20 working days from the date of being granted the license, the enterprise must publicly announce the license, location, business sector, name of the legal representative performing employment service activities, phone number, e-mail, and website on the mass media. 
2. At least 10 working days before starting employment service activities, the enterprise is responsible for notifying the Department of Home Affairs where its headquarters are located in writing about the start date of operation.  
3. In case of changing the location of the headquarters or branch, the enterprise must send a written notice to the Department of Home Affairs where the headquarters or branch is located about the new location, attached with documents proving the conditions specified in Clause 1, Article 14 of the Decree 23/2021/NĐ-CP, within 10 working days before the relocation.  
4. Within 10 working days from the date of the decision to assign tasks to the branch, the enterprise must notify the Department of Home Affairs where the enterprise has its head office and the Department of Home Affairs where the enterprise has its branch office (in case the branch location is in a different province from the one where the enterprise has been granted a license) together with documents proving the conditions specified in Clause 1, Article 14 of the Decree 23/2021/NĐ-CP.  

III. Administrative penalties for certain common violations  

Pursuant to Articles 6 and 7 of Decree No. 12/2022/NĐ-CP, the administrative penalties for specific violations are as follows: 

1. A fine ranging from VND 500,000 to VND 1,000,000 shall be imposed on an employment service enterprise committing any of the following acts: 

1. Announcing employment service activities not in accordance with legal regulations; 
2. Failing to publicly post at the enterprise’s head office a certified copy of the license or the decision on license revocation; 
3. Failing to monitor the employment status of employees introduced or supplied by the enterprise for at least 03 months or for the duration of the labor contract in cases where the contract term is less than 03 months.  

2. A fine ranging from VND 1,000,000 to VND 3,000,000 shall be imposed on an employment service enterprise committing any of the following acts: 

1. Failing to report on employment service activities as required; 
2. Failing to establish, update, or manage data on employees registered for consulting and job placement and employers registered for recruitment; or failing to connect/share such data when requested by competent state authorities; 
3. Failing to formulate or publicly post employment service prices at the enterprise’s head office in accordance with the law. 

3. A fine ranging from VND 10,000,000 to VND 20,000,000 shall be imposed on an employment service organization that provides false or misleading information about job positions.  

4. A fine ranging from VND 90,000,000 to VND 120,000,000 shall be imposed for conducting employment service activities without being a legally established employment service center, without an Employment Service License issued by a competent authority, or by using an expired Employment Service License. 

5. A fine ranging from VND 80,000,000 to VND 100,000,000 shall be imposed on an employment service enterprise committing any of the following acts: 

1. Allowing another enterprise, organization, or individual to use its license; 
2. Altering or falsifying documents in the application dossier for issuance, extension, or reissuance of the Employment Service License without reaching the level of criminal prosecution; 
3. Altering or falsifying the contents of an issued Employment Service License without reaching the level of criminal prosecution; 
4. Forging documents in the application dossier for issuance, extension, or reissuance of the Employment Service License without reaching the level of criminal prosecution; 
5. Forging an Employment Service License without reaching the level of criminal prosecution; 
6. Failing to meet one or more of the statutory conditions for license issuance. 

6. A fine ranging from VND 80,000,000 to VND 100,000,000 shall be imposed for forging an Employment Service License without reaching the level of criminal prosecution. 

Please note that the employment service enterprise may be subject to confiscation of the counterfeit Employment Service License used as the violating instrument if it commits the violations prescribed at Point đ, Section III.5 and Section III.6 above. 

In addition, employment service enterprises shall be required to take remedial measures, including: 

1. Returning to the individuals or organizations using employment services any fees unlawfully collected, together with interest calculated at the highest demand deposit interest rate announced by state-owned commercial banks at the time of sanctioning, for violations prescribed in Section III.4 above; 
2. Returning the Employment Service License to the competent authority that issued it, for violations prescribed at Point c of Section III.5 above. 

From the above regulations, it can be seen that employment service enterprises are required not only to fully meet the conditions for licensing but also to maintain compliance throughout their operations. Failure to fulfill statutory obligations may result in significant administrative penalties and even directly affect the enterprise’s ability to continue its business activities. Therefore, enterprises should pay special attention to regularly reviewing their operations, strictly complying with requirements on notification, reporting, and record/data management in order to minimize legal risks and ensure sustainable operation. 

Related post

1. Procedures for Obtaining, Renewing, and Reissuing the Employment Service License in Vietnam (Part 2)
2. Employment service: Mandatory conditions for Foreign investors in Vietnam
3. Conditions for foreign investors to operate in employment services in Vietnam

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