Vietnam: New Work Permit (Re)Issuance Requirements In Vietnam

Work permits for foreign employees can no longer be extended; reissuance is required since November 2013. Reissuance requires almost the same amount of paperwork as an initial application, except for a criminal record and certain supporting documents. New regulations now also require approval from the Chairman of the provincial People's Committee regarding the annual demand for foreign employees. The People's Committee approval must be submitted with the work permit application. However, compared to extensions in the past, a reissuance does not require a training contract with a Vietnamese national.

Work permit application according to Decree 102/2013/ND-CP

Work permit applications are submitted to the local Department of Labor, Invalids and Social Affairs (DOLISA). There is a tight window of only 10 days to apply for reissuance. Employers and foreigners working in Vietnam are advised to be aware of the number of days remaining on their work permits.

The maximum term of a work permit is now two years (previously three years) depending, among other factors, on the length of the labor contract, letter of appointment, and validity of the passport. The question is how the authorities view a labor contract with a foreign employee that is longer than two years. Our view is that a fixed-term expat labor contract with a term of more than 24 months and up to 36 months is not in breach of the law and therefore enforceable between the parties. However, if the work permit is not renewed after the two-year term (or less if, e.g., the employee's passport was due to expire earlier) the employee would be working illegally in Vietnam.

In addition, employers should note that labor contracts must be converted to indefinite-term contracts after two consecutive fixed-term contracts. The Labor Code does not differentiate between Vietnamese and non-Vietnamese employees in this regard, and options to evade indefinite-term contracts after this period are limited.

The new Immigration Law scheduled to take effect June 2014 is likely to expressly provide for the first time that work permits must be issued before the foreigner obtains a visa and enters Vietnam.

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