Understanding the Work Permit for Foreign Employees
A work permit is a critical legal document issued by Vietnamese competent authorities, enabling foreign employees to work legally within the country. It serves as a cornerstone for ensuring that foreign workers are recognized under Vietnamese labor law, safeguarding their rights and interests in labor relations. This document is not merely a formality but a mandatory requirement for most foreign workers, ensuring compliance with Vietnam’s legal framework and fostering a structured labor environment. The issuance of a work permit signifies that the foreign employee meets specific legal conditions, thereby granting them the ability to engage in lawful employment while being protected by Vietnam’s labor regulations, except in cases where international treaties to which Vietnam is a party provide otherwise.
Legal Conditions for Foreign Workers in Vietnam
The Labor Code of 2019, specifically Article 151.1, outlines the foundational requirements for foreign workers seeking to work in Vietnam. To be eligible, a foreign employee must be at least 18 years old and possess full civil act capacity, ensuring they can legally enter into labor contracts. Additionally, they must have the necessary technical, professional, or occupational qualifications, coupled with relevant work experience, and meet health standards as prescribed by the Minister of Health. Importantly, the individual must not be serving a sentence, have an unexpunged criminal record, or be subject to criminal prosecution under either Vietnamese or foreign law. Finally, unless exempted under Article 154 of the Labor Code, a work permit issued by an authorized Vietnamese state agency is mandatory. These conditions ensure that only qualified and legally compliant individuals are permitted to work, aligning with Vietnam’s regulatory standards and protecting the labor market.
Who Needs a Work Permit in Vietnam?
Decree 152/2020/ND-CP provides a clear framework for identifying foreign individuals subject to work permit requirements. The decree specifies that work permits are required for foreigners entering Vietnam for purposes such as executing labor contracts, participating in intra-company transfer programs, or fulfilling contracts in sectors like business, commerce, finance, banking, insurance, science and technology, culture, sports, education, vocational training, or health. Additionally, foreigners providing services under contracts, offering services, or working for licensed foreign non-governmental or international organizations in Vietnam must obtain a work permit. The regulation also extends to those working as managers, chief executive officers, experts, or technicians, as well as those involved in bid contracts or projects in Vietnam.
Eligible sponsors for work permits include a wide range of entities, such as enterprises operating under the Enterprise Law or Investment Law, contractors participating in bids, representative offices, branches, state agencies, political and socio-political organizations, and licensed foreign non-governmental organizations. Educational institutions, international organizations, cooperatives, and even business households or individuals permitted to operate under Vietnamese law can also sponsor work permits. This broad scope ensures that various organizations can legally employ foreign workers, provided they meet the necessary legal criteria.
Conditions for Issuing a Work Permit
To obtain a work permit, foreign employees must satisfy stringent conditions outlined in Decree 152/2020/ND-CP. The applicant must possess full civil act capacity, ensuring they can legally engage in contractual obligations. Health suitability, as verified by a medical certificate, is essential to confirm the worker’s ability to perform the job. The individual must also be free from criminal convictions or ongoing prosecutions under both Vietnamese and foreign law, safeguarding the integrity of the labor market. Furthermore, the applicant must qualify as a manager, chief executive officer, expert, or technician, with specific documentation to substantiate their status.
For experts, a bachelor’s degree or higher, coupled with at least three years of relevant experience in their trained field, is required. Alternatively, five years of experience with a practice certificate relevant to the job, duly legalized by consular authorities, may suffice. Technical workers must have at least one year of training in a technical field and three years of relevant experience, or five years of experience in the job they intend to perform in Vietnam, with consular legalization where applicable. Managers and executives need a formal appointment decision and at least five years of relevant experience. These rigorous requirements ensure that only highly qualified individuals are granted work permits, aligning with Vietnam’s goal of maintaining a skilled and professional workforce.
Documentation Required for a Work Permit Application
The application process for a work permit requires a comprehensive set of documents, as stipulated in Decree 152/2020/ND-CP. The employer must submit an application form (Form No. 11/PL1) as prescribed in the decree. A fitness-to-work certificate, issued within 12 months by a competent foreign or Vietnamese health facility, is mandatory to verify the applicant’s health suitability. A criminal record or certificate, issued within six months by a foreign competent authority, must confirm that the applicant is not a criminal or subject to prosecution. For managers, executives, experts, or technicians, specific documents are required to prove their qualifications, such as diplomas, certificates, or certifications of experience, often requiring consular legalization.
Specialized professions, such as foreign football players, pilots, flight attendants, ship crew members, or sports coaches, require additional documentation, such as international transfer certificates, pilot licenses validated by Vietnamese authorities, or specific coaching certifications recognized by relevant bodies. Two 4cm×6cm color photos, taken within six months, and a notarized copy of a valid passport are also required. Depending on the nature of employment, additional documents may include intra-company transfer confirmations, service contracts, or agreements between Vietnamese and foreign partners. An acceptance of demand for foreign workers, unless exempted, is also necessary. These requirements ensure that the application process is thorough, verifying both the employee’s qualifications and the legitimacy of their employment purpose.
Competent Authorities for Issuing Work Permits
The issuance of work permits falls under the jurisdiction of the Ministry of Labor, Invalids, and Social Affairs or the provincial/municipal Department of Labor, Invalids, and Social Affairs, as outlined in Circular 40/2016/TT-BLĐTBXH. The specific authority depends on the type of enterprise or organization employing the foreign worker. This dual-level system ensures efficient processing while accommodating the diverse nature of employers across Vietnam, from state agencies to private enterprises.
Procedure for Obtaining a Work Permit
Request for Approval to Hire Foreign Employees
The process begins with the employer submitting a request for approval to hire foreign workers, at least 30 days before the intended employment start date. This request, mandated by Circular 40/2016/TT-BLĐTBXH, must be submitted to the Ministry of Labor, Invalids, and Social Affairs or the provincial People’s Committee. Since October 2, 2017, employers can also submit this request online via the portal http://dvc.vieclamvietnam.gov.vn, using a registered account. The application must be submitted at least 20 days before employment begins. Within 12 days of receiving a valid application, the competent authority will respond via email, either approving the request or requesting corrections. Upon approval, the employer must submit or mail the original documents, and within eight hours, the authority will return the original approval result. The dossier includes a standardized form explaining the demand for foreign workers, ensuring transparency in the hiring process.
Submission of Work Permit Application
Once approval is obtained, the employer must submit the work permit application at least 15 days before the employment start date to either the Ministry or the provincial Department of Labor, Invalids, and Social Affairs, depending on the workplace location. If the application is complete and valid, the applicant pays the required fee and receives an appointment for the result. Incomplete applications prompt a notification for supplementation. The processing time typically spans five working days from the receipt of a valid application, ensuring a streamlined yet rigorous review process.
Receiving the Work Permit
Within five working days, the competent authority issues the work permit using Form 12/PLI, as specified in Decree 152/2020/ND-CP. If the application is rejected, a written explanation detailing the reasons for refusal is provided, ensuring transparency and allowing the applicant to address deficiencies.
Work Permit Fees
The cost of obtaining a work permit varies by locality, as regulated by Circular 250/2016/TT-BTC. For instance, the fee for a new work permit is VND 400,000 in Hanoi and VND 600,000 in Ho Chi Minh City, with the highest fee capped at VND 1,000,000. These fees are subject to change based on local regulations, and employers are responsible for covering these costs, relieving foreign workers of this financial burden.
Duration of a Work Permit
Under Article 10 of Decree 152/2020/ND-CP, the duration of a work permit is tied to specific factors but cannot exceed two years. The validity period aligns with the duration of the labor contract, the foreign employer’s assignment period, or the term of contracts or agreements between Vietnamese and foreign partners. For service providers, non-governmental organizations, or commercial presences, the permit’s duration corresponds to the specified service or operational period. This limitation ensures that work permits are issued for a defined period, aligning with the temporary nature of foreign employment in Vietnam.
Consequences of Working Without a Work Permit
Penalties for Employers
Employers who hire foreign workers without valid work permits or exemptions face significant penalties under Vietnamese law. Fines range from VND 30,000,000 to VND 45,000,000 for violations involving 1–10 workers, VND 45,000,000 to VND 60,000,000 for 11–20 workers, and VND 60,000,000 to VND 75,000,000 for 21 or more workers. These penalties underscore the importance of compliance, protecting the integrity of Vietnam’s labor market and ensuring fair treatment of workers.
Penalties for Foreign Employees
Foreign workers operating without a valid work permit or exemption certificate face fines ranging from VND 15,000,000 to VND 25,000,000. Additionally, they may be expelled from Vietnam, a severe consequence that highlights the critical need for compliance with work permit regulations. This dual enforcement mechanism ensures that both employers and employees adhere to legal requirements, maintaining order in the labor system.
Conclusion
The work permit framework in Vietnam is a well-defined legal structure designed to regulate the employment of foreign workers while protecting their rights and ensuring compliance with national laws. By adhering to the conditions, documentation requirements, and procedures outlined in the Labor Code 2019 and Decree 152/2020/ND-CP, employers and foreign employees can navigate the process effectively. Failure to comply results in significant penalties, emphasizing the importance of obtaining a valid work permit. Regular updates to these regulations necessitate ongoing vigilance to ensure compliance with the latest legal standards.
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Compiler: Nguyen Anh Quan
