In the context of globalization and international integration, the demand for foreign labor is increasing. The law has set out regulations on work permits for foreigners to ensure social security and protect the rights and interests of the parties involved in labor relations.

This article will provide information related to legal regulations, existing problems and solutions for the current situation of applying for work permits for foreigners.

1. Work permit for foreigners and employees who must have a work permit

A work permit for foreigners (work permit) is a document issued by the Ministry of Labor, War Invalids and Social Affairs or the Department of Labor, War Invalids and Social Affairs to promote foreigners who are legally working in Vietnam, and the use of foreign labor is carried out in accordance with the law.

Pursuant to Clause 1, Article 151 of the Labor Code 2019, foreign workers working in Vietnam must meet certain conditions, including conditions on work permits. Specifically, foreign workers must have a work permit issued by a competent authority, except in cases where a work permit is not required. Accordingly, applying for a work permit is a mandatory procedure for foreigners to participate in labor relations in Vietnam and be protected by Vietnamese law.

2. Cases requiring a work permit and reasonable cases not subject to a work permit

2.1. Cases requiring a work permit

According to Article 151 of the 2019 Labor Code and Article 2 of Decree No. 152/2020/ND-CP, except for cases not subject to the issuance of a work permit, foreign workers working in Vietnam in the following forms must have a work permit:

(i) Performing a labor contract, transferring within an enterprise or performing types of contracts, agreements in a number of prescribed fields;

(ii) Service providers, offering services under contracts;

(iii) Persons responsible for establishing current businesses;

(iv) Managers, executives, experts, technical workers;

(v) ​​Persons participating in the implementation of bidding packages and projects in Vietnam;

(vii) Other cases as prescribed by the Government.

2.2. Cases not allowed to grant a property license

According to Article 154 of the Labor Code 2019, there are cases that are not subject to the granting of a work permit, such as:

(i) Foreign workers who are owners, capital contributors, members or Chairman of the Board of Directors of companies with a capital contribution value of VND 3 billion or more;

(ii) Foreign workers entering Vietnam for less than 3 months to perform specific jobs as prescribed by law;

(iii) Foreigners marrying Vietnamese people and living in Vietnam;

(iv) Other cases as prescribed by the Government.

3. Duration of work permit

According to Article 155 of the Labor Code 2019 and Article 10 of Decree 152/2020/ND-CP, the duration of a work permit will depend on the term of the labor contract, the challenges signed between the parties, the business's operating license and some documents as prescribed by law. However, the term of a work permit is not more than 02 years. If a limit is needed, it can only be limited once with a maximum term of 02 years.

4. Work permit application process

The necessary documents for the work permit application as well as the detailed process are specified in Articles 9 and 11 of Decree 152/2020/ND-CP. Foreign employers and foreign employees should note 02 important time frames in the process including the time for preparing the application and the time for granting the permit. Specifically:

(i) At least 15 days before the date the foreign employee is expected to start working in Vietnam, the person who prepares the application for a work permit shall submit it to the Ministry of Labor - Invalids and Social Affairs or the Department of Labor - Invalids and Social Affairs where the foreign employee is expected to work;

(ii) Within 05 working days from the date of receipt of complete documents, the Ministry of Labor - Invalids and Social Affairs or the Department of Labor - Invalids and Social Affairs where the employee is expected to work shall issue a work permit to the foreign employee.

5. Regulations on handling cases without a work permit

Based on Clause 4, Article 32 of Decree 12/2022/ND-CP, depending on the level of violation, employers who employ foreign employees without a work permit will be fined from VND 30 million to VND 75 million (for individuals) or from VND 60 million to VND 150 million (for organizations).

In addition, Point a, Clause 3, Clause 5, Article 32 of Decree 12/2020/ND-CP also stipulates penalties for foreign workers working in Vietnam without a work permit with a fine of VND 15,000,000 to VND 25,000,000 with additional strict penalties for foreign labor exporters.

Above is some information on the issue of work permits for foreigners. The article is for reference only, not intended as advice. For further advice, please contact: info@barrso.com