Expanding labor outsourcing activities

The Government on March 20, 2019 issued Decree No. 29/2019/ND-CP ("Decree 29") detailing and guiding the implementation of Article 58 of the Labor Code on licensing labor outsourcing activities, payment of escrow deposits and the list of jobs in which labor outsourcing is allowed.

The Government on March 20, 2019 issued Decree No. 29/2019/ND-CP (“Decree 29”) detailing and guiding the implementation of Article 58 of the Labor Code on licensing labor outsourcing activities, payment of escrow deposits and the list of jobs in which labor outsourcing is allowed.

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Question: What are changes in the authority and conditions for licensing labor outsourcing activities as stipulated in Decree 29?

Answer:

Changes to the authority and conditions for licensing labor outsourcing activities

The authority to issue, renew, reissue and exchange licenses on labor outsourcing will be granted to Chairman of the provincial People’s Committee instead of the Minister of Labor, War Invalids and Social Affairs as before.

Decree 29 abolishes the conditions on locations of labor outsourcing enterprises and does not stipulate additional conditions on capital and experience with respect to foreign enterprises in joint venture with Vietnamese enterprises.

However, Decree 29 supplements some detailed conditions that the legal representative of labor outsourcing enterprises must meet; particularly, he/she must be the enterprise’s manager, does not have a criminal records, and has worked in the labor outsourcing field for a full three years (36 months) or more within five consecutive years immediately before applying for a license.

Decree 29 abolishes legal documents concerning labor outsourcing, namely: Decree No. 55/2013/ND-CP; Decree No. 73/2014/ND-CP; Circular No. 01/2014/TT-BLDTBXH; and Circular No. 40/2014/TT-NHNN.

Decree 29 shall come into force from May 5, 2019./.

(Source:VGP)