The decree was released to further clarify Article 54.3 of Vietnam's 2012 Labour Code regarding the conditions for licensing labour outsourcing activities. Information regarding the key changes of Decree 55 can be found below.— File Photo

(Biz Hub)--The Vietnamese government recently issued Decree No. 55/2013/ND-CP (hereinafter referred to as ‘Decree 55?) on May 22, 2013. The decree was released to further clarify Article 54.3 of Vietnam's 2012 Labour Code regarding the conditions for licensing labour outsourcing activities. Information regarding the key changes of Decree 55 can be found below.

· Upon its establishment, a company that provides labour outsourcing services must pay an escrow deposit of two billion Vietnamese dong (to be held with a commercial bank) and also obtain a corresponding license from the Ministry of Labour, Invalids and Social Affairs;

· The maximum term for supplying a worker is 12 months. Once that term expires, the worker can no longer be supplied to that same company;

· Labour outsourcing is permitted when an employer needs to:

o Temporarily meet a sudden increase in the requirements for labour for a definite period of time; or

o Temporarily replace employees that fall under the following circumstances:

1. On maternity leave;

2. Affected by labour accidents/work-related diseases;

3. Those who must carry out civic obligations;

4. Employees who must reduce their working hours; or

5. To source highly skilled workers.

· Only the following 17 jobs can be outsourced:

1. Interpreter/translator/stenographer;

2. Secretary/administrative assistant;

3. Receptionist;

4. Tour guide;

5. Sales assistant;

6. Project assistant;

7. Programmer for the manufacture of machinery systems;

8. Technician for the manufacture or installation of television and telecommunications;

9. Technician for operating, testing or repairing construction machinery and equipment, or for the manufacture of electrical systems;

10. Sanitation worker for buildings and factories;

11. Document editor;

12. Security guard/bodyguard;

13. Telemarketer/customer service worker via telephone;

14. Financial and tax issue processor;

15. Repairing/testing technician for automobiles;

16. Scanning and industrial drawing artist/interior designer; and

17. Driver.

· Labour outsourcing activities are prohibited when:

o The outsourcing is to replace employees that are on strike or currently in a labour dispute;

o The outsourced workers are to replace employees who have been retrenched; or

o The outsourced workers are to work at locations with harsh living conditions.

· Companies that provide labour outsourcing services are prohibited from:

o Paying salaries and other benefits to an outsourced worker at rates lower than those agreed upon with the company using the labour outsourcing services;

o Lending the labour outsourcing license to other enterprises or borrowing a labour outsourcing license to outsource workers;

o Collecting fees from outsourced workers or outsourcing workers without their consent;

o Outsourcing workers to perform jobs that are not on the list of the 17 permitted jobs listed above or for terms that exceed the 12-month limit; or

o Providing labour outsourcing activities to a related company within the same group.

· Companies that use outsourced workers are prohibited from:

o Collecting fees from the outsourced workers;

o Outsourcing the outsourced workers to other employers; or

o Using the outsourced workers to perform jobs that are not on the list of the 17 permitted jobs listed above, or for a term that exceeds the 12-month limit.

Decree 55 will come into force July 15, 2013.

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