Labor subleasing activities are gradually becoming popular in the current economy. So according to labor law, how is subleasing defined? What principles are based on conducting subleasing activities? 

CSPL: Articles 52, 53, 55 Labor Code 2019

1. Labor subleasing

– Labor subleasing is when a worker signs a labor contract with an employer who is a labor subleasing enterprise, then the worker is transferred to work and is under the management of another employer while still maintaining the labor relationship with the employer who signed the labor contract.

– Labor subleasing is an industry, Conditional business, only performed by businesses with a Labor Subleasing License and applicable to certain jobs.

2. Principles of labor subleasing

– The maximum term of labor subleasing for employees is 12 months.

– The labor subleasing party is allowed to use the subleasing labor in the following cases:

+ Temporarily responding to a sudden increase in labor demand for a certain period of time regulations;

+ Replacing employees who are on maternity leave, have an accident at work, have an occupational disease, or must perform civic duties;

+ There is a need to use labor with high professional and technical qualifications.

– The subleasing party is not allowed to use subleased labor in the following cases here:

+ To replace workers who are exercising their right to strike and resolve labor disputes;

+ There is no specific agreement on the compensation liability for labor accidents and occupational diseases of sub-hired workers with the labor subleasing enterprise;

+ To replace workers who are laid off due to changes in structure, technology, or other reasons. due to economic reasons or division, separation, consolidation or merger.

– The outsourcing party is not allowed to transfer the subhired employee to another employer; Do not use subleased workers provided by businesses that do not have a Labor Subleasing License.

3. Labor subleasing contract

–  The labor subleasing enterprise and the labor subleasing party must sign a written labor subleasing contract made in 02 copies, each party keeps 01 copy.

– The labor subleasing contract includes the following main contents:

+ Working location, required job position Using subleased labor, specific content of the job, specific requirements for subleased workers;

+ Duration of subleasing labor; starting time of the subleased employee;

+ Working hours, rest hours, safety and hygiene conditions at the workplace;

+ Liability for compensation for labor accidents and occupational diseases;

+ Obligations of each party towards the employee.

– Contract for Sub-hire workers must not have agreements on the rights and benefits of the employee that are lower than the labor contract that the labor sub-leasing enterprise has signed with the employee.