Foreign Labor Use Report now due quarterly
5 May 16
IMPACT – MEDIUM
What is the change? All companies employing or assigning foreign nationals, including work permit holders, work permit exemption certificate holders and others working in Vietnam, are now required to submit a Foreign Labor Use Report every quarter.
What does the change mean? Employers should be aware that they will have to submit information on their foreign labor usage to the Department of Labour, Invalids and Social Affairs (DeLISA) on a quarterly basis.
- Implementation time frame: Effective April 1.
- Who is affected: Companies that have foreign nationals holding work permits or work permit exemption certificates, as well as foreign nationals who are not required to obtain work permit or work permit exemptions but are currently working in Vietnam.
- Business impact: Companies may be penalized should they fail to submit the report every quarter.
- Next steps: Details on the due dates and the required forms are expected to be finalized in a circular.
Background: The quarterly reporting requirement was issued in April under an update to Decree 11/ND-CP/2016 that detailed the implementation of labor codes covering foreign nationals working in Vietnam.
The decree introduces two types of reports for companies employing foreign nationals:
- A job position approval that companies must apply for and obtain before requesting a work permit for a foreign individual.
- A Foreign Labor Use Report that companies must now submit to DeLISA on a quarterly basis documenting their use of foreign labor during the previous quarter.
Employers who fail to submit the report on time or who submit an incomplete report may be fined 1 million to 2 million Vietnamese dongs (about US$45-90).
BAL Analysis: Companies sponsoring foreign nationals to Vietnam should begin to prepare for this new requirement and update their policies to remain compliant with the regulations.
This alert has been provided by the BAL Global Practice group and our network provider located in Vietnam. For additional information, please contact your BAL attorney.
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