On 23 May 2014 the Government enacted Decree No. 52/2014/ND-CP regulating the conditions and procedures for grant of license for employment service activities of enterprises engaged in employment service activities (“Decree 52”). The promulgation of Decree 52 has the meaning of bridging over the lack of guiding regulations regarding employment service operations.
According to Decree 52, enterprises engaged in employment service activities are entitled to conduct the following activities:
- Provide career and job consultancies for employees; and recruitment, labor source development and labor management consultancies for employers;
- Introduce jobs to employees; provide and recruit employees to employers as required; and recruit and introduce employees to organizations and enterprises licensed for sending laborers to work overseas under labor contracts;
- Collect, analyze, forecast and supply information on the labor market;
- Conduct job search skills training and vocational training in accordance with law; and
- Carry out programs and projects regarding employment.
In order to conduct the above employment service activities, enterprises must be granted the license for operating employment services by the competent authorities. There are three main conditions required for obtaining this license as follows:
- The location of the head office and any branches must be permanent and have a lease of at least three years if the head office premises is leased from a landlord, and be able to present all necessary papers as described in Decree 52;
- Specialized staff must include at least three qualified employees with college level or higher, sufficient civil ability and clear curricula vitae;
- Entry into an escrow account of VND300 million at the commercial bank where the enterprise opens its main transaction accounts for settlement of possible risks and compensations when conducting employment service activities.
The license for operating employment services is a maximum of five years without limit on extensions. Each extension, however, will not exceed 60 months.
Within fifteen days from the date of opening a branch, the enterprise must notify the place of the branch office to competent authorities.
Decree 52 took effect on 15 July 2014.│