Some Notes When Using Foreign Employees In Vietnam

Nowadays, the employment of foreign employees in Vietnam has become increasingly common. However, in the process of using foreign employees, many enterprises fail to ensure compliance with legal regulations, resulting in consequences such as revocation of issued work permits, fines, and even deportation of foreign employees from Vietnam. Within the scope of this article, the author will address issues related to ‘Some notes when using foreign employees in Vietnam’.

1. Regular first-half-year reports and annual reports on the employment of foreign workers 

When employing foreign employees, the Employer shall be responsible for sending a  report on employment of Foreign Employees using Form No. 07/PLI Appendix I issued together with Decree No. 152/2020/NĐ-CP (‘Decree 152’). 

The periodic reporting schedule is as follows: 

  • First-half-year reporting: From June 15th to before July 5th, the reported data is calculated from December 15th of the previous year to June 14th of the reporting period.  
  • Annual periodic reporting: From December 15th to before January 5th of the following year, the reported data is calculated from December 15th of the previous year to December 14th of the reporting period.  

Note: In addition to periodic reporting, the labor authorities may require the Employer to report ad-hoc on the labor usage situation. 

If the report is not submitted, or the report does not contain accurate information, or is not submitted within the prescribed deadline regarding the usage of foreign employees as per regulations, the Foreign Employees may be fined from 1 million to 3 million VND. For enterprises, the applicable fine ranges from 2 million to 6 million VND.  

2. Submit the labor contract to the labor permit-issuing authority  

After being granted a new or extended Work Permit (‘WP’) based on the employment contract, the Employer and the Foreign Employees must sign a written employment contract as per Vietnam’s labor law before the date on which the foreign worker is expected to work.  

Subsequently, the Employer must submit one original or authenticated copy of the signed labor contract as per the request to the Ministry of Labor, War Invalids and Social Affairs or the Department of Labor, Invalids and Social Affairs where the Foreign Employees was granted the WP.

If the Employer fails to submit the labor contract to the licensing authority that issued the WP, they may be fined from 1 million to 3 million Vietnamese Dong. For enterprises, the applicable fine ranges from 2 million to 6 million Vietnamese Dong. 

3. Employing foreign employees in the appropriate position and job title  

The Employer shall be responsible for using the Foreign Employees by the position, job title, workplace location, and other specified details stated in the Work Permit that has been issued. If the Employer utilizes the Foreign Employees not in compliance with the details specified in the WP or the document confirming work permit exemption, they may be fined from 5 million to 10 million VND per employee for each violation, with a maximum fine not exceeding 75 million VND. For enterprises, this fine is doubled. 

4. Revocation of the Work Permit and return it to the authority that issued the Work Permit

When any of the following events occur, the granted Work Permit will expire, and the Employer is responsible for revoking the Work Permit and returning it to the issuing authority (the Licensing Authority): 

  • The work permit expires; 
  • The employment contract is terminated;
  • The contents of the employment contract are inconsistent with the contents of the Work Permit granted;
  • The work performed is not conformable with the contents of the work permit granted; 
  • The contract that is the basis for issuance of the work permit expires or is terminated; 
  • The foreign party issues a written notice that terminates the dispatch of the foreign employee to Vietnam;
  • The Vietnamese party or foreign organization that hires foreign employee ceases its operation. 

Time for revocation: within 15 days after the work permit ceases to be effective, accompanied by a document specifying the reason for revocation and work permits subject to revocation but cannot be revoked. 

 


Disclaimers:

This article is for general information purposes only and is not intended to provide any legal advice for any particular case. The legal provisions referenced in the content are in effect at the time of publication but may have expired at the time you read the content. We therefore advise that you always consult a professional consultant before applying any content.

For issues related to the content or intellectual property rights of the article, please email cs@apolatlegal.vn.

Apolat Legal is a law firm in Vietnam with experience and capacity to provide consulting services related to Employment and contact our team of lawyers in Vietnam via email info@apolatlegal.com.

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