Labor outsourcing regulations vietnam 2026

In the context of a rapidly developing economy, labor leasing has become an important part of the business system for many companies operating in Vietnam, especially foreign-owned businesses. Utilizing labor leasing services not only helps businesses minimize costs and maximize profits but also contributes to creating job opportunities and improving the lives of workers. To ensure fairness and transparency in the labor outsourcing regulations vietnam, the Vietnamese government has established specific risks of improper labor outsourcing on this activity.

This article will delve into the regulations related to labor leasing in Vietnam, focusing on the basic principles and legal responsibilities of both the employer and the employee. Thanks to these regulations, both businesses and workers can operate in a fair and safe environment, creating a balance between the needs of businesses and the rights of workers.

1.    Labor Leasing

According to Article 52 of the 2019 Labor Code, outsourced workforce legal responsibilities is when an employee enters into a labor contract with an employer, which is a labor leasing enterprise. The employee is then transferred to work under the management of another employer while maintaining the employment relationship with the original employer.

Labor leasing is a conditional business activity, only permitted by enterprises holding a Labor Leasing License and applicable to certain specific jobs.

Principles of labor liability in outsourcing contracts
According to Article 52 of the 2019 Labor Code, the maximum duration for labor leasing is 12 months.

The labor leasing company may use leased labor in the following cases:

a) To temporarily meet a sudden increase in labor demand for a specific period;

b) To replace workers on maternity leave, due to work accidents, occupational diseases, or to fulfill civic duties;

c) To have a need for highly skilled and technically proficient workers.

The labor leasing company is not allowed to use leased labor in the following cases:

a) To replace workers who are exercising their right to strike or resolving labor disputes;

b) When there is no specific agreement with the labor leasing company regarding the responsibility for compensation for work accidents or occupational diseases of leased workers;

c) To replace workers who are laid off due to structural changes, technological changes, economic reasons, or division, separation, merger, or acquisition.

The labor leasing company is not allowed to transfer leased workers to other employers; nor is it allowed to use leased workers provided by businesses that do not have a Labor Leasing License.
 

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2.    Labor Leasing Businesses

Article 54 of the 2019 Labor Code stipulates:

Labor leasing businesses must deposit a security fund and be granted a Labor Leasing License.

The Government shall regulate the deposit, conditions, procedures for granting, renewing, extending, and revoking Labor Leasing Licenses, and the list of jobs that can be performed through labor leasing.
Labor Leasing Contract
Article 55 of the 2019 Labor Code stipulates that the labor leasing company and the labor leasing party must sign a written labor leasing contract in two copies, with each party keeping one copy.

A labor leasing contract includes the following main contents:

a) Workplace location, job position requiring leased labor, specific job content, and specific requirements for leased workers;

b) Lease term; start date of leased workers;

c) Working hours, rest periods, and occupational safety and health conditions at the workplace;

d) Responsibility for compensation for work accidents and occupational diseases;

e) Obligations of each party towards the worker.

A labor outsourcing advisory services contract must not contain agreements on the rights and benefits of the worker that are lower than those stipulated in the labor contract signed between the leasing company and the worker.
 

The risks of improper labor outsourcing

3.    Rights and Obligations of Labor Leasing Enterprises

Article 56 of the 2019 Labor Code stipulates that, in addition to the rights and obligations specified in Article 6 of the 2019 Labor Code, labor leasing enterprises have the following rights and obligations:

Ensuring that the leased workers are provided with qualifications suitable to the requirements of outsourcing compliance audit vietnam, the leasing party and the content of the labor contract signed with the workers;

Informing the workers of the content of the labor leasing contract;

Informing the leasing party of the workers' resumes and requirements;
Ensuring that the wages paid to leased workers are not lower than the wages of the leasing party's own workers with the same qualifications, performing the same work or work of equal value;
Maintaining records clearly showing the number of workers who have been leased.

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