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New regulations on foreign employees working in
nHat nam
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On 30 December last year the government issued Decree 152/2020/ND-CP ("Decree 152") on foreign employees working in Vietnam and recruiting and managing Vietnamese employees working for foreign organisations and individuals within the country.
Decree 152 will take effect from 15 February 2021 and replace Decree 11/2016/ND-CP, Decree 140/2018/ND-CP. Below are some additional cases outlined in the new Decree that were not in the previous one.
ADDITIONAL CASES OF FOREIGN EMPLOYEES ExEMPT FROM WORK PERMITS
In addition to the cases where a foreign employee is not required to be granted a work permit as prescribed before and in Article 154 of the Labour Code 2019, Article 7 of Decree 152 supplements the following cases:
l Being an owner or capital contributor of a limited liability company with a capital contribution of VND3 billion (USD130,000)or more.
l Being the chairman of the Board of Directors or a member of the Board of Directors of a joint stock company with a capital contribution of VND3 billion or more.
l Being the person responsible for establishing a commercial presence.
l Foreign employees entering Vietnam certified by the Ministry of Education and Training to teach and study.
TWO ADDITIONAL CASES OF WORK PERMIT TERM
Compared with the previous regulations, Article 10 of Decree 152 adds two cases of determining the work permit term:
l The term that has been determined in the operation license of an agency, organisation or enterprise.
l The term that has been recorded in the written approval for the employment of foreign employees, except for cases in which the report on the demand for foreign employees is not required according to Article 4 of this Decree.
RE-ISSUANCE, ExTENSION AND REVOCATION OF WORK PERMITS
Re-issuance of work permit: in case (i) the current valid work permit is lost; (ii) the current valid work permit is damaged; and (iii) change of full name, nationality, passport number or work location indicated in the current valid work permit.
Extension of work permit: in order to have a work permit extended, the foreign employee must satisfy the following conditions: (i) the issued work permit is valid for at least five days but not exceeding 45 days; (ii) the demand for foreign employees is approved by a competent authority as stipulated in Article 4 or 5 hereof; and (iii) documents proving that the foreign employee continues to work for the employer according to the contents of the issued work permit. The employee is only extended once with a maximum of two years.
Revocation of work permit: A work permit is revoked when (i) it expires; (ii) the employer or foreign employee fails to comply with this Decree; and (iii) Foreign employees working in Vietnam fail to comply with Vietnamese laws, affecting social security, order and safety.
