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What is Labor Subleasing? Legal Regulations and Permitted Occupations

Labor subleasing is a conditional business activity that can only be performed by licensed businesses and within the list of occupations permitted by the State.

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What is Labor Subleasing? Legal Regulations and Permitted Occupations

What is labor subleasing?

Labor subleasing is when a worker is recruited by an enterprise licensed to operate labor subleasing, then works for another employer, under the sublease's management but still maintains a labor relationship with the leasing enterprise. The leasing enterprise continues to be responsible for paying salaries, paying social insurance, health insurance, and unemployment insurance for employees.

Why is this a conditional business?

Because this activity directly affects the rights of workers (can easily be abused if not controlled), the law stipulates that businesses that want to operate labor subleasing operations must: have legal capital according to regulations, make a deposit at a bank, and be granted a Labor Subleasing Operation License by a competent authority.

List of occupations that are allowed to sublease labor

Labor law regulates the list of jobs that can be subleased, focusing on seasonal, technical or specialized job groups such as: interpreter/translator/stenographer, secretary/administrative assistant, receptionist, sales support, project support, technician/worker in some manufacturing industries, editor, machine operator/inspector, customer care, and a number of other groups according to current regulations.

Enterprises are not allowed to sublease workers outside the permitted list — violations may result in administrative sanctions and revocation of operating licenses.

Employee benefits when working in the form of sublease

  • Sign a labor contract with the leasing company, not the employer.
  • Enjoy benefits no lower than those of employees with the same job position of the sublease.
  • Still fully participate in social insurance - health insurance - unemployment insurance by the rental company.

Frequently asked questions

What is the maximum duration of labor sublease? The labor sublease term for an employee at a sublease is limited according to current legal regulations, businesses need to comply to avoid violations.

Do businesses that hire workers have to sign a labor contract with the employee? No. The sublessee only signs a labor sublease contract with the leasing enterprise, and does not directly sign a labor contract with the employee.

Does Nhân Kiệt have a license to operate labor sublease? Yes, Nhân Kiệt is an enterprise licensed to operate labor sublease and legally supply labor in Vietnam.

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