What is Labour Outscourcing?
Labour outsourcing, which means the provision of the labour force by a labour outsourcing service provider ("Labour Outsourcing Provider") to enterprises, is permitted under the new Labour Code No. 10/2012/QH13 ("Labour Code 2012"). In implementing labour outsourcing, the licenced Labour Outsourcing Provider will recruit employees and assign such employees to work for another employer in accordance with a labour outsourcing service contract.
A newly issued Decree 55 imposes certain restrictions on labour outsourcing. Under Decree 55, there are only 17 jobs in which labour outsourcing is allowed. Further, a Labour Outsourcing Provider is only allowed to allocate an employee to a client for a period of twelve months in aggregate; this period is not renewable. In order to be licenced, the Labour Outsourcing Provider shall satisfy certain conditions in terms of capital (i.e. VND 2 billion), facilities (i.e. 2-year leased office), and capable human resources (i.e. legal representative having at least 3 years of experience).
Although the Labour Code 2012 and Decree 55 serve to open doors for labour outsourcing, the provision and receipt of such labour outsourcing services is still under substantial limitation. Moreover, due to unclear regulations relating to labour outsourcing, more guidelines are still needed from the competent labour authorities for an efficient implementation of labour outsourcing.
A newly issued Decree 55 imposes certain restrictions on labour outsourcing. Under Decree 55, there are only 17 jobs in which labour outsourcing is allowed. Further, a Labour Outsourcing Provider is only allowed to allocate an employee to a client for a period of twelve months in aggregate; this period is not renewable. In order to be licenced, the Labour Outsourcing Provider shall satisfy certain conditions in terms of capital (i.e. VND 2 billion), facilities (i.e. 2-year leased office), and capable human resources (i.e. legal representative having at least 3 years of experience).
Although the Labour Code 2012 and Decree 55 serve to open doors for labour outsourcing, the provision and receipt of such labour outsourcing services is still under substantial limitation. Moreover, due to unclear regulations relating to labour outsourcing, more guidelines are still needed from the competent labour authorities for an efficient implementation of labour outsourcing.
1. Labor outsourcing service in Faro Vietnam
Each service does the same with all the elements of the market and so does Faro Vietnam's labor outsourcing service. We are aware that at some stage there will be industries and businesses that for various reasons cannot maintain the available personnel; therefore, recently, they need an outside service provider professional and methodical workers to help them solve the problem of benefits. Normally, Faro Vietnam will provide labor outsourcing services for:
- Businesses urgently need personnel for a arised job and this job only lasts for a short time such as sales staff, data entry staff, IT staff for the project .... In this case, outsourcing labor service is a useful solution to help businesses save time and money to recruit, train, and maintain personnel and still have the temporary staff, the right people for the right job.
- Businesses with limited resources or newly established small companies with low workload. In these businesses, maintaining one person for positions such as sales accountant, table accountant, website content administrator, etc. ... would be wasteful to the size and economic potential of the business. Therefore, businesses choose to use Faro's labor outsourcing service with a variety of industries, qualifications and expertise to meet all job requirements.
- Businesses need to focus human resources at the company for core-valued jobs and they are willing to outsource labor to take on less professional work so that their employees have time to research, develop and promote capital strengths.
- Growing businesses aim to expand their business area but they cannot receive current resources. Outsourcing labor service will help solve the problem of human resources quickly while ensuring the speed of work.
- Businesses with limited resources or newly established small companies with low workload. In these businesses, maintaining one person for positions such as sales accountant, table accountant, website content administrator, etc. ... would be wasteful to the size and economic potential of the business. Therefore, businesses choose to use Faro's labor outsourcing service with a variety of industries, qualifications and expertise to meet all job requirements.
- Businesses need to focus human resources at the company for core-valued jobs and they are willing to outsource labor to take on less professional work so that their employees have time to research, develop and promote capital strengths.
- Growing businesses aim to expand their business area but they cannot receive current resources. Outsourcing labor service will help solve the problem of human resources quickly while ensuring the speed of work.
When using labor outsourcing services at Faro Vietnam, the outsourced employees of the customer will sign a labor contract with Faro Vietnam. We will be legally responsible as the employee's employer. This service is the best solution for the customer as it is limited in the Direct Recruitment.
2. The responsibilities Faro Vietnam will do when providing HR outsourcing services:
Faro Vietnam's HR outsourcing service will be responsible for the following specific tasks:
2.1 Labor Contract
Faro Vietnam will sign the contract and manage the entire human resources of employees legally while enterprises only have to manage the professional work of employees.
2.2 Personal Income Tax
Faro Vietnam is responsible for declaring and paying personal income tax for outsourced employees. We ensure that the interests of employees are always the first in accordance with the law.
2.3 Social Insurance, health Insurance and Unemployment Insurance
We undertake to totally pay social insurance, medical insurance and accident insurance for employees.
2. 4 Voluntary Personal Accidents and Medical Insurance
Employees will be given periodic health checks and provided with voluntary accident insurance in accordance with the provisions of the current Labor Law.
2.5 Annual Leave Record
Employee leave policies will be guaranteed and Faro Vietnam will manage annual leave.
2.6 Other Labor Outsourcing tasks if required
In addition to the above tasks, if businesses have any arising situations and other requirements related to outsourcing personnel, Faro Vietnam also supports businesses to handle.
3. Advantages of Faro Vietnam's HR outsourcing service
With responsibility for solving all issues related to human resources, the labor outsourcing service in Faro Vietnam is the solution favored by many recent businesses because it helps:
3.1 Increase work efficiency
The use of outsourcing services will help businesses achieve specialization by transferring all less related and labor-consuming jobs to 3rd parties to focus on expertise and exploit strengths of each employee. On the other hand, when outsourcing labor, businesses will eliminate worries about work interruption due to employees' taking leave or sick leave. With a great number of staff and professional style, Faro Vietnam ensures that the business's labour problem will be solved continuously and smoothly. Thanks to the perfect combination of internal resources and human resource outsourcing that will help employees learn more skills in many aspects. Work together to improve efficiency.
3.2 Save cost
When using Faro Vietnam's labor outsourcing service, businesses will save relatively large costs for recruitment, staff training, labor equipment, and insurance. Everything has been taken care of by Faro Vietnam and your business will immediately have qualified human resources.
3.3 Minimize risks for businesses
With labor outsourcing services, businesses only need to care about the professional qualifications and flexible handling ability of their personnel, while contract issues and policies are Faro Vietnam's. Businesses will remove the risk of issues related to legal procedures. In addition, the labor outsourcing service will reduce the number of employees' voluntary leave and risks of the business progress.
4. Contact Faro Vietnam
Faro Vietnam is proud to be one of the top labor outsourcing companies in Vietnam. Every year, we have been providing quality labor for many domestic and foreign enterprises. With the young, dynamic and enthusiastic team and well-trained human resources, temporary employment services of Faro Vietnam are committed to meet the demand of businesses, with all various production and business models. If your business needs to find a temporary employment agency, do not hesitate to contact Faro Vietnam!
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Contact Faro Vietnam today for HR solution
Email: service.vn@farorecruitment.com
Hanoi Head Office
- Tel: + 84 24 3974 3091
- Add: Unit 701A, Tower A, Handi Resco Towers, 521 Kim Ma Street, Ba Dinh District, Hanoi, Vietnam
Ho Chi Minh City Office
- Tel: + 84 28 3821 4654
- Add: 6th Floor, Saigon Finance Center Tower, 9 Dinh Tien Hoang Street, Dakao Ward, District 1, Ho Chi Minh City, Vietnam
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