On 10/12/2021, the Government has just issued the Decree No. 112/2021/ND-CP detailing a number of articles and measures to implement the Law on Vietnamese employees working abroad under contracts.

Accordingly, Vietnamese enterprises providing services of sending Vietnamese empoyees to work abroad under contracts (service enterprises) must make a deposit of 2,000,000,000 VND (Two billion VND) at a bank and foreign bank branches, which are legally established and operating in Vietnam.

In addition, each branch that is assigned the task of providing the service of sending Vietnamese employees to work abroad under a contract, the service enterprise that assigns the task to the branch must deposit an additional 500,000,000 VND (Five hundred million dong).

In addition, Vietnamese enterprises sending Vietnamese employees to train and improve professional qualifications and skills abroad make deposits at a bank or foreign bank branch, which is established and operating legally in Vietnam. The deposit is equal to 10% of an economy-class air ticket from the workplace to Vietnam, based on the number of employees going to work abroad in the contract of receiving interns.

The enterprise and the bank receiving the deposit sign the contract. Deposits are blocked in accordance with the law, and only used at the written request of the Ministry of Labor, War Invalids and Social Affairs in the following cases:

First, the service enterprise fails to perform or fully perform the obligations as specified at Points c, đ and h, Clause 2, Article 26 of the Law on Vietnamese employees working abroad under contracts.

Second, at the request of a competent state agency to comply with the provisions at Points e and g, Clause 2, Article 26 of the Law on Vietnamese employees working abroad under contracts;

Third, service enterprises fail to perform or fulfill other obligations in service activities of sending Vietnamese employees to work abroad under contracts.

After 30 days from the date the deposit is used, if the service enterprise does not return the used deposit and ensure the deposit level as prescribed, the bank is responsible for notifying in writing to the Ministry of Labor, War Invalids and Social Affairs.

The Decree also stipulates the ceiling rate of deposits, management, use and refund of deposits of employees

Service enterprises and employees agree on the bank to receive the deposit, the deposit, in which the deposit does not exceed the ceiling rate specified in this Decree. At the same time, it must be clearly stated in the contract of sending Vietnamese employees to work abroad.

The employee, the service enterprise and the bank shall agree to sign an escrow contract to perform the obligations in the contract of sending Vietnamese employees to work abroad.

The deposit is made only after the service enterprise and the employee sign a contract to send the Vietnamese employees to work abroad, and the worker has been accepted by the foreign party to work or granted a visa of the host country or territory.

The employee's deposit is used to compensate for the damage caused by the employee's fault to the service enterprise.

The service enterprise and the employee or the person authorized by the employee reach an agreement on the level of compensation for the employee's damage and record it in the contract liquidation document.

In case the bankrupt enterprise hands over the dossier to the Ministry of Labor, War Invalids and Social Affairs as prescribed, this agency shall send a document to the bank on the refund of the deposit to the employees.

Employees also need to register the labor contract online at the portal www.dolab.gov.vn.

Within 5 working days from the date of receiving the online contract registration, the Ministry of Labor, War Invalids and Social Affairs shall reply to the receipt of online contract registration and notify the representative agency of Vietnam in the host country. In case of disapproval of contract registration, the reason must be clearly stated.

After receiving the notice of the Ministry of Labor, War Invalids and Social Affairs of the approval of contract registration, the employee shall make a contribution to the Overseas Employment Support Fund by cash payment or bank transfer.

This Decree takes effect from January 1, 2022.

The Decree No. 38/2020/ND-CP dated April 3, 2020 of the Government detailing the implementation of a number of articles of the Law on Vietnamese employees working abroad under contracts; the Joint Circular No. 17/2007/TTLT-BLDTBXH-NHNNVN dated September 4, 2007 of the Ministry of Labor, War Invalids and Social Affairs - State Bank of Vietnam regulating the management and use of deposits of enterprises and the ones of employees working abroad under contracts shall cease to be effective from the effective date of this Decree.