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The points to consider for foreigners working in Vietnam under the labor exemption category

Foreigners 12/09/2023

Vietnams thriving economy has attracted a considerable number of foreign workers over the years, contributing significantly to the nations growth. While some foreigners obtain work permits to legally work in Vietnam, there are also those who fall into the category of foreign workers not subject to work permits, in accordance with Vietnamese law. In this article, we will explore the regulations governing these workers, the exemptions that apply to them, and the advantages and challenges they encounter while working in Vietnam. In this article, Apolo Lawyers - Solicitors & Litigators (Tel:(+84) 903. 419. 479) will inform about the issues about foreign workers.

The points to consider for foreigners working in Vietnam under the labor exemption category

Vietnams thriving economy has attracted a considerable number of foreign workers over the years, contributing significantly to the nations growth. While some foreigners obtain work permits to legally work in Vietnam, there are also those who fall into the category of foreign workers not subject to work permits, in accordance with Vietnamese law. In this article, we will explore the regulations governing these workers, the exemptions that apply to them, and the advantages and challenges they encounter while working in Vietnam. In this article, Apolo Lawyers - Solicitors & Litigators (Tel:(+84) 903. 419. 479) will inform  about the issues about foreign workers.

1. Vietnamese Labor Laws

Vietnams labor laws are designed to protect both local and foreign workers, ensuring fair and equal treatment in the workplace. The regulations for foreign workers are primarily outlined in the Labor Code and various decrees and circulars issued by the Ministry of Labor, Invalids and Social Affairs (MOLISA).

The points to consider for foreigners working in Vietnam under the labor exemption category

2. Work Permit Exemptions

Foreign workers are typically required to obtain work permits to legally work in Vietnam. However, there are specific exemptions that allow certain categories of foreign employees to work without a work permit. These exemptions include:

  • Intra-Company Transferees: Employees transferred from a foreign company to its branch or affiliate in Vietnam for a limited duration.
  • Experts, Managers, and Executives: Individuals with specialized knowledge, managerial roles, or executive positions, often essential for foreign businesses operating in Vietnam.
  • Contractual Workers Under 30 Days: Foreign workers engaged in short-term service contracts, typically lasting 30 days or less.
  • Workers in Limited Sectors: Certain sectors, such as education and religion, have own specific regulations regarding work permits for foreign workers.

The points to consider for foreigners working in Vietnam under the labor exemption category

3. Legal Requirements for Foreign Workers

Despite the exemption from work permits, foreign workers in Vietnam must still meet several legal requirements:

  • Temporary Residence Registration: Foreigners must register temporary residence with local authorities within 30 days of arrival.
  • Labor Contracts: All foreign employees must have a legally binding labor contract with  employer.
  • Tax Obligations: Foreign workers must fulfill  tax obligations, including personal income tax and social insurance contributions, if applicable.
  • Health Insurance: While not mandatory for all exempted foreign workers, health insurance is recommended to ensure access to healthcare services.

Working in Vietnam under work permit exemption is possible for certain categories of foreign workers. While the specific procedures may vary depending on the exemption category, there are general steps and requirements that apply to most exempted workers. Heres an overview of the procedures to work in Vietnam under work permit exemption:

4. Determine Your Eligibility for Work Permit Exemption:

When employers in Vietnam intend to hire foreign workers to work under the work permit exemption category, they must follow specific registration procedures to ensure compliance with Vietnamese labor laws and regulations. These procedures help both the employer and the employee operate legally in Vietnam. Here are the key registration steps for employers:

4.1. Identify Eligibility for Work Permit Exemption:

Employers must first determine whether the foreign worker they intend to hire falls into one of the eligible categories for work permit exemption, such as intra-company transferees, experts, managers, or contractual workers with short-term assignments. The specific criteria may vary based on the exemption category, so that important to carefully review Vietnamese labor regulations.

4.2. Job Offer and Labor Contract:

Once the employer identifies an eligible candidate, they must provide a formal job offer to the foreign worker. A labor contract should then be drafted, outlining the terms and conditions of employment, including the exemption category under which the worker will operate. The contract should comply with Vietnamese labor laws and specify that the worker is exempt from obtaining a work permit.

The points to consider for foreigners working in Vietnam under the labor exemption category

4.3. Labor Ministry Notification (if required):

Depending on the specific exemption category and the nature of the job, some employers may need to notify the Ministry of Labor, Invalids, and Social Affairs (MOLISA) or the provincial Department of Labor, Invalids, and Social Affairs (DoLISA) about the employment of foreign workers. This notification process may involve providing information about the foreign workers qualifications, job position, and duration of employment. If notification is required, the employer should submit the necessary documents and information as per MOLISA or DoLISA guidelines.

4.4. Visa Application:

The foreign worker will need a valid visa to enter Vietnam legally. Depending on the job and intended duration of stay, the employer may need to assist the worker in obtaining the appropriate visa type, such as a business visa or a temporary resident card, which aligns with the work permit exemption.

4.5. Temporary Residence Registration:

Upon arrival in Vietnam, the foreign worker must register  temporary residence with the local police department within 30 days. This registration should be facilitated by the employer or a trusted local contact.

4.6. Tax and Social Insurance Compliance:

Employers should ensure that the foreign worker complies with tax obligations, including personal income tax. If the worker is eligible for social insurance coverage, the employer should facilitate contributions to the social insurance scheme.

4.7. Ongoing Compliance:

Employers should keep records of the foreign workers employment, including copies of the labor contract and any relevant notifications submitted to authorities. They should also provide support and guidance to the foreign worker to ensure ongoing compliance with Vietnamese laws and regulations.

4.8. Regular Updates and Monitoring:

Vietnamese labor laws and regulations can change, so employers should stay informed and regularly monitor compliance requirements related to work permit exemptions and foreign worker employment.

That important for employers in Vietnam to work closely with legal experts or immigration specialists who have a thorough understanding of labor laws and regulations to ensure smooth and compliant recruitment and employment of foreign workers under work permit exemptions. Failing to follow these procedures can lead to legal issues and penalties for both the employer and the employee.

Contact Apolo Lawyers via email: contact@apolo.com.vn and hotline: (+84) 903.419.479 for more information.

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