When exploring overseas employment programmes, the term “labour dispatch company” is frequently mentioned. However, not all workers clearly understand the legal role, licensing requirements, and responsibilities of such companies under Vietnamese law.
1. What is a labour dispatch company?
Under the Law on Vietnamese Guest Workers under Contract 2020 (Law No. 69/2020/QH14), a “labour dispatch company” is the common term for a Vietnamese enterprise licensed to provide services for sending workers abroad under contract.
This enterprise acts as a lawful intermediary between:
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Vietnamese workers
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Overseas receiving entities (companies, organisations, supervising bodies, etc.)
From this point onward, references will follow Law No. 69/2020/QH14.
2. Applicable legal framework
In addition to Law No. 69/2020/QH14, the operation of labour dispatch companies is governed by several implementing regulations, notably:
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Decree No. 112/2021/ND-CP
→ Detailing a number of provisions of the law, including licensing conditions, deposits, and service management -
Circular No. 21/2021/TT-BLDTBXH
→ Providing guidance on contracts and labour management -
Circular No. 02/2024/TT-BLDTBXH (latest update)
→ Regulating caps on service fees and brokerage fees
These instruments clarify and operationalise the provisions of the Law in practice.
3. Conditions for a legally compliant dispatch company
Under Law No. 69/2020/QH14 and its guiding documents, an enterprise must meet the following conditions:
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Possess a valid service operation licence issued by the competent authority
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Meet the statutory capital requirements
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Maintain a mandatory deposit
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Have a qualified organisational structure and professional staff
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Establish clear procedures for recruitment, training, and worker management
Operating without a licence or using another entity’s legal status is unlawful.
4. Responsibilities of a labour dispatch company
Before departure
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Provide full and accurate information
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Organise language and skills training
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Conclude contracts in compliance with regulations
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Assist with documentation and procedures
During employment overseas
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Coordinate with partners to support and manage workers
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Monitor working and living conditions
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Intervene when issues arise
After return
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Conduct contract liquidation
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Provide relevant support if required
5. Key legal obligations
Under Law No. 69/2020/QH14 and its implementing regulations, enterprises must:
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Not collect fees beyond regulated limits
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Not provide misleading or inaccurate information
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Fulfil all contractual commitments
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Protect the lawful rights and interests of workers
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Bear legal responsibility for any violations
6. How to identify a compliant dispatch company
A lawful and reliable enterprise typically demonstrates:
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Valid licensing
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Transparent information
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Structured training programmes
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Ongoing worker support mechanisms
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Compliance with regulations on fees and contracts
Conclusion
Under Law No. 69/2020/QH14 and its implementing regulations, a labour dispatch company is not merely an intermediary but a legally responsible entity throughout the worker’s overseas employment process. Choosing a licensed and compliant company is essential to safeguarding workers’ rights and ensuring a stable working experience abroad.
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