Labor Subleasing Operation License: Conditions and Procedures

A labor subleasing enterprise must satisfy the conditions and be granted a Labor Subleasing Operation License under Decree 145/2020/ND-CP. Below are the current conditions and procedures.

1. Conditions for issuance of the Labor Subleasing Operation License

Under Article 21 of Decree 145/2020/ND-CP, an enterprise is granted the License when it satisfies:

• The legal representative must be an enterprise manager under the Law on Enterprises, have no criminal record, and have at least 03 years (36 months) of direct professional or managerial experience in labor subleasing or labor supply within the 05 consecutive years preceding the license application;
• The enterprise has deposited VND 2,000,000,000 (two billion dong) as escrow at a commercial bank.

2. Procedures for issuance of the Labor Subleasing Operation License

The dossier is submitted to the Department of Internal Affairs of the province or centrally-run city where the enterprise’s head office is located (after the organizational restructuring, the State management function on labor belongs to the Department of Internal Affairs):

• Step 1: The enterprise submits 01 dossier directly to the Department of Internal Affairs or by post; the Department of Internal Affairs issues a receipt;
• Step 2: Within 20 working days from the receipt of a complete and valid dossier, the Department of Internal Affairs reviews it and submits it to the Chairman of the provincial People’s Committee for consideration;
• Step 3: Within 07 working days from the receipt of the submitted dossier, the Chairman of the provincial People’s Committee considers and grants the Labor Subleasing Operation License.

Total processing time: 27 working days from the receipt of a complete and valid dossier.

3. Term and renewal of the License

The Labor Subleasing Operation License has a term as prescribed by Decree 145/2020/ND-CP. Before expiry, the enterprise must complete renewal procedures if it continues operating; operating with an expired and unrenewed license is a violation of the law.

Notes on application

Labor subleasing is a conditional business line with strict requirements on managerial personnel and escrow deposits. The enterprise must maintain the conditions throughout its operation, not only at the time of licensing.

Common risks to note

• Conducting labor subleasing without being granted the license;
• The legal representative not meeting the 36-month experience standard;
• Failure to maintain the VND 2 billion escrow deposit during operation.

How can ANT Legal help?

ANT Legal assists in reviewing conditions and preparing dossiers for issuance and renewal of the Labor Subleasing Operation License. For advice, please contact an ANT Legal lawyer.

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