Regulations applicable to enterprises employing foreign workers
A crucial point that organizations or individuals employing foreign workers need to note, after completing procedures and being granted a work permit, is the observance of relevant legal regulations.
Enterprises employing foreign workers must comply with legal regulations concerning legal conditions, granting work permits, labor contracts, tax obligations, social and health insurance (SI, HI), and labor usage regulations at the registered position. Specifically, the enterprise must submit a preliminary report on the demand for foreign labor before recruitment and strictly adhere to all granted conditions.
1. Labor Contract
• Contract Duration: Labor contracts with foreign workers must not exceed the validity period of the work permit.
• Language: Must use bilingual language (Vietnamese-foreign language) or use a third language understood by both parties.
• Contract Content: Must comply with all mandatory provisions of Vietnamese Labor Law and regulations governing employment for foreigners.
2. Enterprise Responsibilities (Employer Duties)
• Usage: Absolutely prohibited from employing foreign workers in positions (job titles, locations) other than those stated on the work permit.
• Periodic Reporting: Enterprises are responsible for implementing reports on the status of foreign labor use to competent state agencies.
• Tax Authority: Registering personal tax codes, deducting, and paying personal income tax for foreign workers.
• Insurance: Implementing Social Insurance (SI) and Health Insurance (HI) according to legal regulations. Note that not all cases require foreign workers to pay SI.
• Contract Termination: Upon termination, the enterprise must complete procedures to return the work permit (and temporary residence card, if attached) for the worker.
3. Regulations on responsibilities for immigration procedures and sponsorship of foreign nationals working in Vietnam
Law on Immigration, exit, transit, and residence of foreigners in Vietnam No. 47/2014/QH13 dated June 16, 2014, amended and supplemented by Law No. 51/2019/QH14 dated November 25, 2019, and Law 23/2023/QH15 dated June 25, 2023.
4. Labor Regulations
• Law No. 45/2019/QH14 of the National Assembly: Labor Code 2019.
• Decree No. 152/2020/ND-CP of the Government: Regulations on foreign workers in Vietnam;
• Decree No. 145/2020/ND-CP guiding the implementation of a number of articles of the Labor Code on working conditions and labor relations, supplemented by Decree 35/2022/ND-CP;
• Circular No. 10/2020/TT-BLĐTBXH detailing and guiding the implementation of a number of articles of the Labor Code on labor contracts, collective bargaining and agreement, occupations, working conditions related to reproductive health, nursing.
5. Administrative Sanctions for Violations
• Decree No. 12/2022/ND-CP of the Government: Stipulating administrative penalties for violations in the field of labor, social insurance, Vietnamese employees working abroad under contract.
• Decree No. 144/2021/ND-CP of the Government: Stipulating administrative penalties for violations in the fields of security, order, social safety, fire prevention and fighting, rescue, prevention and combat of social evils, prevention and combat of domestic violence (EXPIRED ON 15/12/2025).
• Decree No. 282/2025/ND-CP of the Government: Stipulating administrative penalties for violations in the fields of security, order, social safety, fire prevention and fighting, rescue, prevention and combat of social evils, prevention and combat of domestic violence (EFFECTIVE DATE 15/12/2025).
6. Legal Risks if Violating
• Penalties: Employing foreign workers without a work permit, not reporting correctly, or not complying with regulations will result in fines according to the law.
• Loss of Rights: Risk of work permit revocation, complex procedure resolution, and related issues.
Understanding the regulations and being fully and accurately prepared will help the process of managing foreign workers with work permit in Vietnam proceed smoothly and effectively.
INBOUND VIETNAM INTERNATIONAL TRAVEL CO., LTD
Ha Noi Head Office: 16 Nguyen Van Ngoc Street, Giang Vo Ward
Hotline: (+84) 965.87.88.77
Ho Chi Minh City Branch: No 174, 3 Thang 2 Street, Hoa Hung Ward
Hotline: (+84) 085.77.88.678
