With the need to find jobs as well as the need to find workers and employees increasing, individuals and businesses will often turn to employment service companies to find suitable jobs and employees. Therefore, establishing an employment service company is a positive choice. If you are planning to establish an employment service company but do not know how to proceed? Please follow Viet My’s article below to better understand this issue.

1. What is an employment service company?

Pursuant to Article 36 of the 2013 Employment Law, it is stipulated that employment services include: consulting and introducing jobs; supply and recruit labor according to employer requirements; Collect and provide necessary information about the labor market.

Accordingly, an employment service company is a type of company that performs the following tasks: consulting and introducing jobs; supply and recruit labor according to employer requirements; Collect and provide necessary information about the labor market.

And according to Clause 1, Article 39 of the 2013 Employment Law, employment service companies can be private companies, 1-member LLCs, LLCs with 2 or more members, partnerships or joint stock company.

Employment service companies must have a license to operate employment services issued by a competent state agency in charge of employment (Department of Labor, War Invalids and Social Affairs).

In addition, employment service companies are allowed to collect fees according to legal regulations on fees and charges.

2. Conditions for establishing an employment service company

Establishing an employment service company, in Article 14 of Decree 23/2021/ND-CP stipulates the conditions for granting a license to operate employment services as follows:

– Have a location for the company’s headquarters or branch to organize employment service activities owned by the company or stably leased by the company under a contract for a period of 3 years (36 months) or more.

– The company has made a deposit of 300,000,000 VND (Three hundred million VND).

– The legal representative of the employment service company must ensure the following conditions:

+ Be a manager of the company according to the provisions of the Enterprise Law;

+ Not in the following cases: currently being prosecuted for criminal liability, currently in detention, currently serving a prison sentence, currently serving administrative measures at compulsory drug treatment facilities or drug treatment facilities. Compulsory education, running away from the place of residence, having limited or lost capacity for civil acts, having difficulty in understanding and controlling behavior, being banned by the Court from holding positions, prohibited from acting profession or work related to employment services;

+ Have a university degree or higher or have worked directly as a professional, employment service manager or labor supplier for 2 years (24 months).

3. Main activities of the employment service company

Specifically, the activities that employment service companies are allowed to carry out are as prescribed in Article 28 of Decree 23/2021/ND-CP, specifically as follows:

– Consulting activities include:

+ Consulting and career orientation, national occupational skills framework for workers to choose suitable occupations, training and retraining plans suitable for abilities and aspirations ;

+ Consulting on employment for employees to choose job positions suitable to their abilities and needs; advice on skills to participate in recruitment; consulting on self-employment and self-finding of jobs domestically and internationally;

+ Consulting for employers on recruitment, employment and management of employees; consulting on management and employment development and human resource development;

+ Consulting on labor and employment policies for employees and employers.

– Introducing work and employment to employees.

– Supply and recruit workers according to the employer’s requirements, including:

+ Recruit employees through examinations to select qualified people who meet the employer’s requirements;

+ Supply of workers according to the employer’s request;

+ Introducing workers to companies licensed to send Vietnamese workers to work abroad under contract, organizations or individuals investing abroad or public service units under the ministry, Ministry-level agencies and Government agencies are assigned the task of sending Vietnamese workers to work abroad under contracts according to regulations.

– Collect and provide information about the labor market.

– Analyze and forecast the future of the labor market.

– Training skills on interview participation, job searching and other job skills; vocational education according to legal regulations.

– Implement employment programs and projects.

In addition, according to the provisions of Clause 1, Article 29 of Decree 23/2021/ND-CP, the company has the right to establish a company branch operating domestic employment services according to the provisions of the Enterprise Law 2020 and must meet the condition of having a branch location to organize employment service activities owned by the company or stably leased by the company under a contract of 3 years (36 months) or more.

4. Is the agency competent to issue licenses to operate employment services?

Pursuant to Article 15 of Decree 23/2021/ND-CP stipulating that the Provincial People’s Committee or the Department of Labor, War Invalids and Social Affairs is authorized by the Provincial People’s Committee where the company is headquartered to issue, extend, and grant Again, revoke licenses for businesses.

Thus, the authority to issue a license to operate employment services belongs to the  provincial level or the Department of Labor, War Invalids and Social Affairs authorized by the Provincial People’s Committee where the company is headquartered.

5. Instructions for establishing an employment service company

Procedures for establishing a new employment service business are carried out as follows:

5.1 Documents for establishing an employment service company

– Company’s written request for a license according to Form No. 02, Appendix II issued with Decree 23/2021/ND-CP.

– 01 certified copy from the original or copy or present the original for comparison with the Certificate of land ownership or location rental contract according to the provisions of Clause 1, Article 14 of Decree 23/2021/ND- CP.

– Certificate of deposit amount for employment service activities according to Form No. 03, Appendix II issued with Decree 23/2021/ND-CP.

– Curriculum vitae of the company’s legal representative according to Form No. 04, Appendix II issued with Decree 23/2021/ND-CP.

– Judicial record card No. 1 according to the law on judicial records of the company’s legal representative.

In case the company representative is a foreigner and is not subject to being issued a criminal record certificate No. serving a penalty or have not yet had their criminal record cleared by the state or are being prosecuted for criminal liability in a foreign country.

+ The above documents are issued no more than 6 months before the application submission date.

+ Foreign language documents must be translated into Vietnamese, authenticated and consularly legalized according to law.

– 01 certified copy of the original or copy or present the original to compare with professional qualifications or 1 of the documents to prove the period of time directly working as a professional or manager of employment services or labor supply by the company’s legal representative as follows:

+ A certified copy of the original or copy or present the original to compare with the labor contract or working contract or recruitment decision, appointment decision, assignment of tasks of the legal representative of the company. company;

+ A certified copy of the original or photocopy, or present the original to compare with the appointment decision (for people working under the appointment regime) or the document certifying the election results (for (for people working under the election regime) of the company’s legal representative or a copy of the business registration certificate (in case of a legal representative of a company operating employment services).

If the above documents are foreign documents, they must be translated into Vietnamese, authenticated and consularly legalized according to the law.

5.2 Procedures for establishing an employment service company

Step 1: Send your application

The company sends 01 set of documents according to regulations to the Department of Labor, War Invalids and Social Affairs where the company will be headquartered to request a license.

Step 2: Check the completeness and validity of the application

After fully checking the above-mentioned documents, the Department of Labor, War Invalids and Social Affairs shall issue a receipt clearly stating the date, month and year of receipt of the license application.

Step 3: Licensing

Within 07 working days from the date of receipt of complete documents as prescribed, the competent authority shall consider and issue a license to the company;

In case the license is not granted, there must be a written response to the company clearly stating the reason.

6. Frequently asked questions about establishing an employment service company

6.1 How long is a license to operate employment services valid for?

Based on Article 16 of Decree 23/2021/ND-CP, the employment service operating license will have a maximum term of 60 months.

6.2 Can the license to operate employment services be extended?

According to Clause 2, Article 16 of Decree 23/2021/ND-CP regulating employment service operation licenses, this License can be renewed many times, each extension is for a maximum of 60 months; The term of the reissued employment service operating license is equal to the remaining term of the old license previously issued.

6.3 Are employment service companies allowed to establish branches?

Employment service companies are allowed to establish domestic branches according to the provisions of the Enterprise Law 2020 and must meet the following conditions: Have a location for headquarters and branches to organize employment service activities. owned by the company or hired by the company stably under a contract with a term of 3 years (36 months) or more.

6.4 Does an employment service company have to establish prices for providing employment services to employees?

Employment service companies are obliged to establish prices for providing employment services to employees at the company’s headquarters in accordance with the law.

6.5 Can an employment service company hire a company manager?

The representative of a company providing employment services is not allowed to hire a company manager but must be a company or enterprise manager according to the provisions of the Enterprise Law.

Above is Viet My’s guide to establishing an employment service company in 2024. If you have difficulty establishing an employment service company or other related issues, contact VIET MY LAW AND ACCOUNTING.