The Government issued Decree 112/2021/ND-CP (hereinafter called as “Decree 112/2021”) on December 10, 2021, detailing a number of articles and measures to implement the Law on Vietnamese employees working abroad under contracts. The Decree came into force on January 1, 2022.
According to the previous regulation in Article 10 of Decree 38/2020/ND-CP, enterprises that send Vietnamese employees abroad under contracts shall deposit VND1 billion in commercial banks that are permitted to operate in Vietnam.
Under the new Decree 112/2021/ND-CP, this margin deposit level would be adjusted to increase from January 1, 2022, specifically:
- The enterprise deposits VND2 billion in a Vietnamese bank or a foreign bank branch that is legally established and operating in Vietnam (hereinafter referred to as the deposit receiving bank).
- Suppose a service enterprise assigns a branch to perform the service of sending Vietnamese employees to work abroad under a contract. In that case, this service enterprise shall deposit VND500,000,000 for each branch assigned to perform the service.
As a result, compared to the earlier level of VND1 billion, the margin deposit level for enterprises that send Vietnamese employees to work abroad under contract has increased to VND2 billion.
Furthermore, Vietnamese enterprises that send their employees abroad to train and improve their professional qualifications and skills shall deposit with a bank or a foreign bank branch that is legally established and operated in Vietnam.
The deposit is equal to 10% of an economy class airfare from the workplace to Vietnam, as calculated based on the number of employees going to work abroad in the receiving labor interns contract.
In terms of the deposit ceiling for employees, Decree 112/2021 states that service enterprises and employees can agree on the bank that would receive the deposit and the margin deposit level, as long as the deposit does not exceed the prescribed ceiling, which shall be clearly stated in the contract. Specified as follows:
- The deposit ceiling for employees in the Taiwan market is VND12 million for all industries and occupations except offshore fishing and transport shipping; in the Korean market is VND36 million.
- In other countries and regions (except Japan, countries in the Americas, Southeast Asia, and the Middle East are not required), the ceiling deposit for employees in all industries and occupations except offshore fishing and transport shipping is equivalent to the value of 01 economy class airfare from the workplace to Vietnam.
