IMPACT – MEDIUM

What is the change? The Ministry of Labour, Invalids and Social Affairs has partially implemented a decree that amends work permit termination procedures.

What does the change mean? Employers must again notify the Department of Labour, Invalids and Social Affairs of early terminations.

  • Implementation date: Officially Dec. 18, 2018, but not all provinces have fully implemented the regulation.
  • Visas/permits affected: Work permits.
  • Who is affected: Employers and work permit applicants.
  • Business impact: Employers must alert the authorities of early terminations. The notification requirements may vary by province.

Background: Circular No. 18/2018/TT has reinstated a previous rule that requires the sponsoring entity to notify the authorities of early work permit terminations. While the requirement has been formally reinstated, each province may enforce the requirement differently. For example, in Ho Chi Minh City the sponsoring entity is required to inform the authorities in writing of an early termination and the original work permit should be collected from the employee and kept by the host entity. Alternatively, in some provinces, the original work permit must be returned to the Department of Labour, Invalids and Social Affairs.

Analysis & Comments: Employers should ensure that the authorities are notified of all early work permit terminations as required by the new decree.

Source: Deloitte LLP. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 1 New Street Square, London EC4A 3HQ, United Kingdom.