Legal capital threshold for labour subleasing


On May 23, the Government issued Decree 55/2013/ND-CP for the implementation of Clause 3 Article 54 of the Labour Code regarding the labour subleasing, escrow deposit and a list of jobs for which labour may be subleased.

On May 23, the Government issued Decree 55/2013/ND-CP for the implementation of Clause 3 Article 54 of the Labour Code regarding the labour subleasing.— Photo baocongthuong

(Biz Hub) — On May 23, the Government issued Decree 55/2013/ND-CP for the implementation of Clause 3 Article 54 of the Labour Code regarding the labour subleasing, escrow deposit and a list of jobs for which labour may be subleased.

Accordingly, the enterprises wishing to be granted with a Licence for labour subleasing must satisfy conditions, such as:

. Paying an escrow deposit of VND2 billion and maintaining the same amount of charter capital during the whole operation;

. The location of head office, branches and representative offices must be stable and terms of this location must be two years or more.

. The head of the enterprise, branch and representative offices must have a working experience of three years or more in labour subleasing.

This Decree also provides that the jobs for which labour may be subleased include translation, compiling, shorthand, secretary, administrative assistant, receptionist, tour guide, sale assistant, project assistant, producing system programmer, building or factory cleaner, bodyguard, drive.

The labour subleasing purports to temporarily meet unexpected increases in human resources, to replace employees during maternity, accidents, occupation health leave or matching demand for employing workers with highly technical and professional level.

The Decree further provides some cases in which labour subleasing is prohibited, such as enterprises currently having labour disputes, strikes, replacing dismissed employees because of changing structure, technology or merger, division, separation of enterprise; providing the labour subleasing to work in server condition.

The maximum period for labour subleasing is 12 months. When this period is over, the sublessor is not allowed to continuously sublease to the sublessee the employee who has just ended up the sublease period.

This Decree shall take effect from July 15, 2013. - Biz  Consult Law LLC



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