More liberal rule for labor employment

Businesses, both local and foreign, can employ foreign labor but it must not exceed 3% of their workforce, according to Government Decree 93/2005/ND-CP issued on July 13 to replace Decree 105/2003.

Businesses, both local and foreign, can employ foreign labor but it must not exceed 3% of their workforce, according to Government Decree 93/2005/ND-CP issued on July 13 to replace Decree 105/2003.

The decree, however, allows businesses operating in particular trades or industries that employ few expatriates or are in the initial stage of operation to hire foreign labor exceeding 3% of the workforce. These businesses must seek permission for the employment from the chairperson of the provincial or municipal government.

The 30% limit does not apply to foreign contractors; rep offices of foreign entities in the finance, trade, banking, insurance, science and technology, culture, sports, education, training and health care sectors; socio-political organizations; foreign project offices; law firms and cooperatives. However, they must obtain approval from the municipal or provincial government before hiring foreign workers.

Employers must obtain work permits for foreign workers. However, the permit is not required for workers in projects for less than three months, members of the management board, heads of rep offices and branches of foreign companies, and foreign lawyers who have practice licenses from the Ministry of Justice. The permit is valid for 36 months and must be renewed 30 days before it expires.

The new decree also abolishes the regulation that businesses can only employ 50 expatriates at most.

(Source: Saigontimesweekly)