29 March, 2016
Decree No. 11/2016/ND-CP Dated February 3, 2016
This Decree takes effect from April 1st 2016 and provides detailed guidance on the registration process, certificate request on the demand of foreign employees; conditions, issuance and reissuance process of work permits; cases where foreign employees are exempted from work permits and expulsion of foreign employees.
This Decree supplements cases in which foreign employees are exempted from work permits. Accordingly, foreign employees holding positions being specialist, manager, executive director or technical consultant with a working period less than 30 days and a accumulated working period less than 90 days per year are exempted from work permits.
The Employer is not required to notify the need for foreign employees with the Provincial People’s Committee in the following cases:
- Foreigners entering into Vietnam for a duration of less than 3 months to offer services
- Foreigners entering into Vietnam for a duration of less than 3 months to rectify technical, complex situations occurred that affect or threaten to affect to the operation and business activities that could not be resolved by Vietnamese specialists and the foreign specialist currently residing in Vietnam.
- Foreigners entering into Vietnam to work as specialists, managers, executive directors or technical consultants with a working period under 30 days and an accumulated period not exceed 90 days within a year.
- Foreigners being pupils, students studying in Vietnam and working in Vietnam, however the Employer is required to notify the Provincial Labour Agency 7 days in advance.
- Foreigners being students studying in schools or training institutions in foreign countries that execute their practicum at agencies, organizations or companies in Vietnam as per agreements.
Grant Thornton Vietnam would like to highlight the risks when employing foreigners as follows:
- Foreigners working in Vietnam without proper work permit or having an expired work permit shall be expelled from Vietnam.
- Employers of foreign employees shall be penalised from VND1 to 2 millions if they fail to notify the employment status of foreigners to the Labour Authority Agency.
- Employers could be fined from VND 30 to 75 millions based on the violation level. In addition to that, additional fine being the operation suspension from 1 to 3 months can be imposed on the Employer involving in violation activities.
