ENTERPRISE EMPLOYING FOREIGN LABOR, VIOLATION EASY TO MEET?

With a growing economy and strong global economic integration, Vietnam is now becoming an attractive destination for many international companies or international cooperation. One of the important aspects in expanding and improving the quality of business activities in Vietnam is the use of foreign workers. However, recruiting and managing foreign workers is not always easy and requires special attention by businesses employing foreign workers.

1.         General overview of the responsibilities of companies employing foreign workers

Enterprises using foreign workers in Vietnam need to comply with labor laws and related laws regarding recruitment, use and management of workers. Particular:

–           Labor demand must be consistent with economic and social conditions and responsive to the situation of the enterprise. Specifically, enterprises, agencies, organizations, individuals, and contractors are only allowed to recruit foreign workers to fill management, executive, expert, and technical positions that Vietnamese workers that not been able to meet production and business needs.

–           The demand to use labor must be registered and approved according to regulations. Before recruiting foreign workers to work in Vietnam, enterprises must explain their need to employ workers and obtain written approval from competent state agencies.

–           Foreign workers must have full permits according to labor laws.

–           The situation of using foreign workers of enterprises must be reported according to regulations.

2.         Some common violations of using foreign workers by enterprises and penalties

a.         Violation of reporting obligations:

Fines from 1,000,000 VND to 3,000,000 VND shall be imposed on enterprise with violation on using foreign workers, for the following acts:

–           Fail to report or report incorrectly or report on time on the situation of using foreign workers as prescribed;

–           Fail to send the original labor contract or a certified copy signed after the foreign worker is granted a work permit or renews the work permit to the competent authority that has issued the work permit, or extend the work permit at the request of the competent authority that has issued the work permit in the case of foreign workers working under a labor contract.

b.         Violation of license obligations:

–           Fine from 5,000,000 VND to 10,000,000 VND for violation for each worker but not exceeding 75,000,000 VND for employers who use foreign workers inconsistently with the content written on the work permit or written confirmation that the worker is not subject to a work permit, unless otherwise prescribed by law.

–           Fines for employers who use foreign workers to work in Vietnam without a work permit or without a written confirmation that the worker is not subject to a work permit or employing workers a foreigner whose work permit has expired or a written confirmation that the worker is not subject to a work permit has expired at one of the following levels:

+          From 30,000,000 VND to 45,000,000 VND for violations from 01 person to 10 persons;

+          From 45,000,000 VND to 60,000,000 VND for violations of 11 to 20 persons;

+          From 60,000,000 VND to 75,000,000 VND for violations of 21 persons or more.

In addition, foreign workers who violate the work permit or written confirmation that the worker is not subject to a work permit may be deported from Vietnam as an additional form of sanction.

>> COMPANY PAYS SALARY IN FOREIGN CURRENCY, PERMITTED OR NOT? https://linconlaw.vn/company-pays-salary-in-foreign-currency-permitted-or-not/

>> PROCEDURE ON IMPORTED FUNCTIONAL FOODS ANNOUCEMENT https://linconlaw.vn/procedure-on-imported-functional-foods-annoucement/

3.         Some additional notes to avoid violations of using foreign workers

Using foreign workers requires carefulness and strict compliance with legal regulations. If not fully compliant, enterprises with violations on using foreign workers can face unnecessary legal and financial consequences.

In addition to the obligations in section 1 above, enterprises employing foreign workers also need to pay attention to the following issues:

–           Labor contract or working contract.

–           Labor regulations, including labor rights and obligations, working hours, and salaries…

–           Entry and exit of foreign workers.

–           Tax and social insurance.

–           Labor safety policy.

–           Update relevant legal regulations from time to time.