1. What is the maximum duration of labor sublease?

Specifically, Article 53 of the 2019 Labor Code stipulates the principles of labor subleasing as follows:

- The maximum sublease term for employees is 12 months.

- The subleasing party may use the subleased labor in the following cases:

+ Temporarily respond to sudden increases in labor demand within a certain period of time;

+ Replace employees who are on maternity leave, have accidents at work, have occupational diseases or must perform civic duties;

+ There is a need to employ workers with high professional and technical qualifications.

- The sub-hiring party is not allowed to use sub-hired labor in the following cases:

+ To replace workers who are exercising their right to strike or resolve labor disputes;

+ There is no specific agreement on compensation responsibilities for labor accidents and occupational diseases of the subleased employee with the labor subleasing enterprise;

+ Replace workers who are laid off due to structural changes, technology, economic reasons or division, separation, consolidation or merger.

- The outsourcing party is not allowed to transfer the subhired employee to another employer; Do not use subleased workers provided by businesses that do not have a Labor Subleasing License.

Thus, the maximum labor sublease term is 12 months.

2. What are the penalties for subleasing labor beyond the term?

Pursuant to Point c, Clause 6, Article 13 of Decree 12/2022/ND-CP stipulating a fine from 80,000,000 VND to 100,000,000 VND for labor subleasing enterprises that commit acts of subleasing labor to for employees exceeding 12 months.

The fines prescribed for these violations are fines for individuals. The fine for organizations is 2 times the fine for individuals (Clause 1, Article 6, Decree 12/2022/ND-CP).

In addition, additional sanctions will be applied: Stripping of the right to use the Labor Subleasing Operation License for a period of 6 to 12 months for violations of the above regulations (Point a, Clause 8, Article 13 Decree 12/2022/ND-CP).

3. Rights and obligations of labor subleasing enterprises

In addition to the rights and obligations specified in Article 6 of the 2019 Labor Code, labor subleasing enterprises have the following rights and obligations:

- Ensure the placement of qualified workers in accordance with the requirements of the outsourcing party and the content of the labor contract signed with the worker;

- Inform employees of the content of the labor subleasing contract;

- Notify the outsourcing party of the employee's resume and the employee's requirements;

- Ensure that salaries paid to subleased workers are not lower than the salaries of the outsourcing party's employees with the same qualifications, doing the same job or work of equal value;

- Prepare documents clearly stating the number of subleased workers, the subleasing party and periodically report to the specialized labor agency under the Provincial People's Committee;

- Handle labor discipline for employees who violate labor discipline when the outsourcing party returns the employee due to violation of labor discipline.