Short answer: Labor subleasing is when a licensed subleasing enterprise signs labor contracts with employees, then subleases those employees to another enterprise for a fee. This is a conditional business sector: the subleasing enterprise must be licensed, deposit VND 2 billion, and may only sublease for jobs on the Government-permitted list, with a maximum sublease term of 12 months.
Legal basis
- Articles 52–57 of the Labor Code 2019 — labor subleasing;
- Decree 145/2020/ND-CP — licensing conditions, deposits, list of subleasable jobs.
What is labor subleasing?
The labor subleasing relationship involves three parties: the subleasing enterprise (signing labor contracts with employees), the subleased employees and the labor lessee (using the labor, paying the sublease fee to the subleasing enterprise). Employees are managed and directed by the lessee during the sublease, but the labor relationship remains with the subleasing enterprise.
Related services
Commercial Contracts
If you are preparing to sign, review or handle a dispute arising from a contract, ANT Legal can help assess key terms, legal risks and suitable handling options.
Conditions for labor subleasing business
- Being granted a labor subleasing operation license; the license is valid for 60 months and renewable;
- Depositing VND 2,000,000,000 at a commercial bank;
- The legal representative having a university degree or higher and at least 03 years of experience in labor subleasing or labor supply;
- Not falling into cases of license revocation within the statutory period.
Jobs permitted for subleasing
Enterprises may only sublease labor for jobs on the list issued by the Government in Decree 145/2020/ND-CP (such as interpreters, secretaries, receptionists, drivers, security guards, health care…). Subleasing outside the list is a prohibited act.
Rights and obligations of the parties
- Subleasing enterprise: signing labor contracts, paying salaries, paying insurance for employees; must not charge fees to employees;
- Labor lessee: using labor for the agreed jobs; ensuring working conditions and safety; paying the sublease fee on time;
- Employees: paid no less than employees of the same qualifications doing the same job at the lessee; having the right to unilaterally terminate the contract when mistreated.
Term and limits
- The maximum labor sublease term is 12 months;
- The lessee may not further sublease the leased employees;
- Subleasing labor to replace employees on strike or during labor dispute resolution is strictly prohibited.
If you need to determine the option best suited to your specific situation, you should discuss it with a lawyer in advance for dossier review and advice on the handling plan.
For quick advice, you may contact a lawyer at 0966.475.966.
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