The decree came after the Labour Code officially became effective on May 1.
It stipulates that labour sub-leasing is limited to 17 types of jobs, including interpreters, administrative staff, receptionists, tour guides, sales and project assistants, security guards, domestic workers, editors, drivers, and interior designers.
The decree also states that labour sub-leasing is only to be used to meet temporary labour demands, such as when full-time employees take maternity leave or suffer accidents, or if highly skilled, specialised labour is needed for a short period of time.
Labour subleasing cannot exceed a period of 12 months, according to the decree.
Experts said the restriction to 17 occupation groups was a cautious move by the Government in what the first regulation related to labour subleasing. The practice had been unregulated in the country for at least 10 years.
The decree also defines four situations in which a company is not allowed to sublease labour.. These include companies that are currently involved in labour disputes or want to replace workers who are on strike; companies that do not clarify responsibilities for compensation and other health issues with labour leasing companies; companies that want to replace workers due to restructuring or merging; and companies that want to use sub-leased labourers workers to work in extreme conditions.
The new regulation also provides guidelines for establishing and operating a labour dispatch business, allowing only companies with starting capital of VND2 billion (US$95,200) and that pay a deposit of VND1 billion (US$48,000) to register.
