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Things You Need to Know Before Using Agency Labour


Posted by Iris Data Driven Agency

9 months ago

Article 53 of the 2012 Labor Code stipulates that labor agency outsourcing is the employment of an employee who has been recruited by an authorized business to engage in labor sublease and then employed by another employer, under the control of the following employer and maintaining labor relations with the businesses. So how does a total definition about agency labor look like and the duties of business before an employee is placed? Please check it out in this article.

Overview of agency labor and employment agency services

Labor outsourcing is essentially a three-party relationship with the participation of three parties: the employment agency (the labor leasing company), the subleased employees (agency labor), and the labor sublessee (the businesses). labor outsourcing).

What is agency labor?

You are really an agency worker if you have a contract with an employment agency but you work temporarily for businesses who employ you by a contract. You might also be called a temporary worker. When you are put in a job, the employer will tell you how you should do your work.

What is agency labor outsourcing?

Labor subleasing means that a company hires an employee under a labor contract but does not directly employ but provides this employee to work temporarily for another business - the party wishing to use the labor for a defined period and outsourcing the agency labor of the employment agency to resolve the shortage of workers in their company. 

The duties of business before an employee is placed

Rights and obligations of the labor outsourcing service provider

Article 56 of the Labor Code provides that a labor outsourcing enterprise or employment agency has the following rights and obligations:

  • Ensure the bringing of qualified workers in accordance with the requirements of the labor sublessee and the content of the labor contract signed with the employee.

  • Inform the employee of the outsourcing contract.

  • Sign a labor contract with the employee in accordance with this Code.

  • Inform the labor sublessee of the employee's resume and employee's requirements.

  • Fulfill the obligations of the employer in accordance with this Code; payment of salaries, wages for public holidays, annual leave, work stoppage wages, severance allowances, job loss allowances; pay compulsory social insurance, health insurance, and unemployment insurance premiums for employees in accordance with the law.

    • Ensure the payment of salaries to sublease employees is not lower than the salaries of employees of the labor sublessee with the same qualifications, doing the same job, or the work of equal value.

  • Make a record specifying the number of employees hired, the labor sublessee, the labor sublease fee, and reporting to the provincial labor management agency.

  • Handle of labor discipline against employees who violate labor discipline when the labor sublessee returns the employees due to labor discipline violations.

Rights and obligations of the labor sublessee

Article 57 of the Labor Code allows a labor sublessee to have the following rights and obligations:

  • Inform and guide the subleased employee to know his labor regulations and other regulations.

  • Do not discriminate on the working conditions of re-employed employees compared to their own employees.

  • Agreement with the re-employed employee if they are hired to work nights or work overtime in addition to the content of the labor sublease contract.

  • Do not transfer subleased employees to other employers.

  • Agreement with the re-employed employee and re-employment enterprise to officially recruit the outsourced employee to work for him/herself in the case of the employee's labor contract with the labor-leasing enterprise not over yet.

  • Return the labor sublease enterprise to employees who do not meet the requirements as agreed or violate the labor discipline.

  • Provide the outsourcing service provider with evidence of violations against the labor discipline by the outsourced employee for consideration and handling of labor discipline.

Rights and obligations of outsourced workers

Article 58 of the Labor Code provides for the Rights and obligations of the re-employed employee, specifically:

  • Performing jobs under labor contracts signed with labor subleasing enterprises.

  • Abide by the labor regulations, labor discipline, the lawful administration, and comply with the collective labor agreement of the labor sublessee.

  • To be paid not less than the wages of employees of the labor sublessee who have the same qualifications, do the same job or work of equal value.

  • Complain to the outsourcing service provider in case the outsourcing service provider violates agreements in the outsourcing contract.

  • Exercise the right to unilaterally terminate the labor contract with the labor subleasing enterprise according to the regulations on the right to unilaterally terminate the labor contract of the employee

  • Agreement to enter into a labor contract with the labor sublessee after terminating the labor contract with the labor sublessor.

When to use a Labour Hire Company to get employees?

Labor outsourcing is a service that many businesses choose when there is a labor shortage. So when businesses need to use an employment agency to get the available workers?

  • Respond temporarily to a sudden increase in employees over a specified period of time.

  • Replace workers during maternity leave, labor accidents, occupational disease or fulfill their civic obligations or reduce their working hours.

  • There is a need to use workers with high professional and technical qualifications.

  • The maximum term of a labor sublease must not exceed 12 months.

Final words

Outsourcing labor agency is an important and beneficial HR outsourcing service that brings advanced benefits for both businesses, employment agencies, and labor workforce. In case your businesses need a large team of skills without management fees or spend too much time on resolving problems that are relevant to contract policy, salary, payroll... outsourcing staffing services could be the best choice. Contact Navigos Search, a leading recruitment company in Vietnam to get more HR consultants and support via our Contact Page or visit our office on the 20th floor, Central Tower, 11 Doan Van Bo Str., Ward 12, Dist. 4, Ho Chi Minh City, Vietnam