Monday, November 19 2018


Legal capital threshold for labour subleasing

Update: June, 05/2013 - 11:10

On May 23, the Government issued Decree 55/2013/ND-CP for the implementation of Clause 3 Article 54 of the Labour Code regarding the labour subleasing, escrow deposit and a list of jobs for which labour may be subleased.

Accordingly, the enterprises wishing to be granted with a Licence for labour subleasing must satisfy conditions, such as:

. Paying an escrow deposit of VND2 billion and maintaining the same amount of charter capital during the whole operation;

. The location of head office, branches and representative offices must be stable and terms of this location must be two years or more.

. The head of the enterprise, branch and representative offices must have a working experience of three years or more in labour subleasing.

This Decree also provides that the jobs for which labour may be subleased include translation, compiling, shorthand, secretary, administrative assistant, receptionist, tour guide, sale assistant, project assistant, producing system programmer, building or factory cleaner, bodyguard, drive.

The labour subleasing purports to temporarily meet unexpected increases in human resources, to replace employees during maternity, accidents, occupation health leave or matching demand for employing workers with highly technical and professional level.

The Decree further provides some cases in which labour subleasing is prohibited, such as enterprises currently having labour disputes, strikes, replacing dismissed employees because of changing structure, technology or merger, division, separation of enterprise; providing the labour subleasing to work in server condition.

The maximum period for labour subleasing is 12 months. When this period is over, the sublessor is not allowed to continuously sublease to the sublessee the employee who has just ended up the sublease period.

This Decree shall take effect from July 15, 2013.

New principles for wage scales

On May14, 2013, the Government issued Decree No. 49/2013/ND-CP guiding the implementation of a number of Articles of the Labour Code on wages.

The Decree stipulates principles for setting up wage scales and payrolls. In detail, beside the regulation that the lowest wage level of the most simple work or title in normal labour conditions must not be lower than the region-based minimum wage level prescribed by the Government, the Decree also stipulates that the lowest wage level of the work or title requiring employees to be vocational trained (including employees trained by enterprises themselves) must be at least seven per cent higher than the region-based minimum wage levels prescribed by the Government; the wage level of work or title with the heavy, hazardous and dangerous working conditions must be at least five per cent higher than the wage level of work or title of equivalent complexity but in normal working conditions, and at least seven per cent higher for those working in specially heavy, hazardous and dangerous working conditions.

Besides, when formulating and applying the wage scale and payroll, the principle of equality and nondiscrimination must be ensured.

Under the new Decree, enterprises must apply experimentally their newly set labour norm before it is officially promulgated. Enterprises must adjust their labour norm if the actual productivity is five per cent lower or 10% higher than the assigned norm, or the actual performance during a given time period is 5% higher or 10% lower than the assigned norm.

This Decree takes effect from July 1, 2013. However the Decree provides that the provisions therein shall be applied from May 1, 2013. - bizconsult law LLC

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