Decision No. 12/2020/QD-TTg dated March 31, 2020 piloting payment of deposit by workers to be working in Korea under Korean Employment Permit System Programme

DECISION

PILOTING PAYMENT OF DEPOSIT BY WORKERS TO BE WORKING IN KOREA UNDER KOREAN EMPLOYMENT PERMIT SYSTEM PROGRAMME

Pursuant to the Law on organization of Government dated June 19, 2015;

Pursuant to the Law on Vietnamese guest workers dated November 29, 2006;

Pursuant to the Government’s Decree No. 138/2016/ND-CP dated October 01, 2016 promulgating Working Regulation of the Government;

At the request of the Minister of Labour, War Invalids and Social Affairs;

The Prime Minister promulgates this Decision piloting payment of deposit by workers to be working in Korea under Korean Employment Permit System Programme.

Chapter I

GENERAL PROVISIONS

Article 1. Scope

This Decision stipulates the implementation of the pilot scheme on deposit payment and provision of loans to workers to be working in Korea under the Employment Permit System (EPS) Programme, deposit return and settlement, management and use of deposit transferred to state budget.

Article 2. Regulated entities   

1. Workers who are going to work in Korea under the EPS Programme.

2. The Center of Overseas Labor (Colab) affiliated to the Ministry of Labor, War Invalids and Social Affairs.

3. Vietnam Bank for Social Policies (VBSP).

4. Other regulatory authorities, organizations and individuals involved in workers to be working in Korea under the EPS Programme.

Chapter II

PAYMENT OF DEPOSIT AND PROVISIONS OF LOANS FOR DEPOSIT PAYMENT

Article 3. Payment of deposit

1. Before departing for Korea for working under the EPS Programme, workers are required to make deposit for ensuring their performance of employment contracts and return to Vietnam once their employment contracts have been terminated.

2. The compulsory deposit is VND 100,000,000 (one hundred million).

Article 4. Time of making deposit, receiving bank and term of deposit

1. Within 35 days after the Contract for sending workers to Korea under the EPS Programme is signed with Colab, the worker shall make deposit to the VBSP's branch in the province of the worker’s registered permanent residence.

2. Term of deposit is 5 years 6 months.

Article 5. Assisting in getting loans for making deposit

1. A worker who is eligible to get loans from VBSP for working abroad may apply for a loan up to VND 100,000,000 (one hundred million) at VBSP for making deposit as prescribed without providing collateral.

2. Loan term, principal payment and interest rate shall be specified in the credit agreement signed by and between VBSP and the worker.

3. VBSP shall consider deciding the interest rate on loan provided for each worker working abroad under employment contract.

Article 6. Deposit contract and notification of deposit

1. The worker and VBSP receiving deposit shall enter into a deposit contract in conformity with this Decision and relevant regulations. Such deposit contract includes: Full name and address of the legal representative of VBSP receiving deposit, full name of the worker, full name of his/her authorized person (if any), the worker’s registered permanent residence and current address, deposit purpose, deposit amount, interest rate of deposit, opening and use of deposit account, return and settlement of deposit, responsibility of related parties, including repayment of loan given by VBSP and other legitimate agreements.

2. VBSP receiving deposit shall provide 01 original of the signed deposit contract for the worker. Within 05 working days from the receipt of deposit, VBSP shall send the list of workers making deposit to Colab for completing procedures for sending them to Korea for working.

Chapter III

RETURN OF DEPOSIT

Article 7. Cases of return of deposit

1. Deposit (including principal and interest) shall be returned to the worker in the following cases:

a) The worker does not depart to work in Korea after making deposit;

b) The worker returns to Vietnam on schedule upon termination of his/her employment contract (whether the employment contract has expired or is terminated before its expiry date); or is expelled but not subject to the case in Clause 1 Article 10 hereof;

c) The worker has obtained another lawful residence visa in Korea;

d) The worker dies or is missing during the validity of his/her employment contract.

2. The worker shall take back his/her deposit after the Contract for sending workers to Korea under the EPS Programme signed with Colab has been duly terminated according to Article 8 hereof.

Article 8. Application for contract termination and deposit return

1. With respect to the case mentioned in Point a Clause 1 Article 7 hereof:

The application form for return of deposit made according to Form No. 01 enclosed herewith.

2. With respect to the case mentioned in Point b or Point c Clause 1 Article 7 hereof:

a) The application form for return of deposit made according to Form No. 02 enclosed herewith;

b) The certified copy of passport;

c) The written certification of the plan for returning to Vietnam issued by the competent Korean labor authority to the worker or another equivalent document as prescribed by the Law of Korea with respect to the case in Point b; the notarized or certified copy of residence card according to the new visa issued in Korea with respect to the case in Point c Clause 1 Article 7 hereof.

3. With respect to the case mentioned in Point d Clause 1 Article 7 hereof:

a) The application form for return of deposit made by the lawful heir or his/her authorized person as prescribed by law according to Form No. 03 enclosed herewith;

b) Documents proving identity and eligibility of the lawful heir of the dead or missing person as prescribed by law;

c) The notarized copy of the extract of death certificate (if the worker is dead) or the notarized copy of the Court's declaration of a missing person (if the worker is missing) or other documents as prescribed by law.

Article 9. Procedures for contract termination and deposit return

1. The workers mentioned in Points a, b, c Clause 1 Article 7 hereof and the lawful heir of the worker mentioned in Point d Clause 1 Article 7 hereof shall submit applications for contract termination and deposit return (either directly or by post) to Colab.

2. Within 15 working days from the receipt of a sufficient and valid application, Colab shall verify and send the record of contract termination to the worker, or the worker’s lawful heir, in which the return of deposit must be specified; and give a written notification to VBSP for completing procedures for returning deposit and closing deposit account for the worker or the worker’s lawful heir. In case the contract cannot be terminated, a written response indicating reasons thereof must be sent to the worker or the worker’s lawful heir.

3. The worker or the worker’s lawful heir shall submit the record of termination of the contract for sending workers to Korea to VBSP receiving deposit for closing deposit account.

Within 03 working days from the receipt of sufficient documents, VBSP receiving deposit shall return deposit amount (including principal and interest) the worker or the worker’s lawful heir.

Chapter IV

SETTLEMENT OF DEPOSIT

Article 10. Settlement of deposit

1. Deposit (including principal and interest) of the worker shall be settled in the following cases:

a) The worker escapes from the workplace specified in the employment contract (including the case where the worker escapes immediately when arriving at Korea);  

b) The worker illegally stays in Korea upon termination of his/her employment contract (whether his/her employment contract has expired or is terminated before its expiry date) and termination of residence permit.

2. With respect to deposit which has been made without using the loan from VBSP, the deposit amount (including both principal and interest) of the worker mentioned in Clause 1 of this Article shall be transferred to state budget of the province of the worker’s registered permanent residence before he/she departed to work in Korea.

3. With respect to deposit which has been made with the loan from VBSP, the deposit amount (including both principal and interest) of the worker mentioned in Clause 1 of this Article shall be settled in the following order:

a) The deposit shall be used to repay the loan to VBSP (VBSP shall consider the worker’s debt repayment and deduct debt from the worker’s deposit account);

b) The deposit amount that remains after paying debt to VBSP shall be transferred to state budget of the province of the worker’s registered permanent residence before he/she departed to work in Korea.

Article 11. Procedures for settlement of deposit

1. Colab shall monthly publish the list of workers subject to the case mentioned in Clause 1 Article 10 hereof on its website; and send relevant information to the Department of Labour, War Invalids and Social Affairs of the province of the worker’s registered permanent residence before he/she departed to work in Korea for verification.

2. Within 40 working days from the date of notification by Colab, if the worker gives no response and the relevant provincial Department of Labour, War Invalids and Social Affairs also gives no other verification results, Colab shall unilaterally terminate the Contract for sending workers to Korea as regulated and send written notification (made for each worker) to VBSP and the Department of Labour, War Invalids and Social Affairs of the worker’s registered permanent residence before he/she departed to work in Korea with respect to the worker subject to the case mentioned in Clause 1 Article 10 hereof and relevant information, including electronic database, according Form No. 04 enclosed herewith.

3. Within 10 working days from the receipt of notification from Colab, provincial Department of Labour, War Invalids and Social Affairs shall notify the worker and his/her family.

4. Within 10 working days from the receipt of notification from Colab, VBSP shall notify its branch or transaction office that has received deposit to carry out procedures for closing the worker’s deposit account and settling deposit according to Clause 2 and Clause 3 Article 10 hereof, and also notify the provincial Department of Labour, War Invalids and Social Affairs.

Chapter V

MANAGEMENT AND USE OF DEPOSIT TRANSFERRED TO STATE BUDGET

Article 12. Management and use of deposit

Deposit transferred to provincial state budget shall be managed and used according to regulations of the Law on state budget for covering expenditures on implementing employment policies and sending workers abroad, including costs of disseminating policies and laws, and training costs, costs of management, inspection and other activities and policies in that province.

Article 13. Spending contents and levels

1. Expenditures on training and drilling, making summaries on employment and sending workers abroad. Spending contents and levels shall comply with current regulations on expenditures on business trips and seminars of state authorities and public service providers.

2. Expenditures on disseminating information on policies on labor, employment and sending of workers abroad.

a) Costs of producing, editing and publishing programs on means of mass media (radio, televisions, printed newspapers, website and magazines); costs of construction, purchase, duplication and distribution of communication products:  regulations on bidding shall apply; If bidding conditions are not met, public services shall be rendered by placing orders or assignment; royalties paid to authors or owners of authors’ rights and remunerations paid to persons performing tasks relating to press works and publications, persons in charge of collecting documents and information serving the creation of press works and publications according to current regulations on royalties in the press.  

b) Costs of organizing seminars/conferences disseminating relevant information and providing advice for workers working abroad and their relatives in order to call upon them to return to Vietnam on schedule, including: Costs of hiring consultants, leasing halls, tables, chairs, loudspeakers and other necessary equipment, drinks for attendants at tea-breaks; costs of documents serving consulting activities and speeches. Spending levels shall be based on actual activities and comply with state regulations on expenditures on business trips and seminars.

3. Expenditures on consulting, introducing jobs and assisting in training for workers returning home after working abroad.

a) providing consultancy and information on employment, and career consultancy free of charge for workers;

b) costs of providing domestic training/drilling courses in entrepreneurship and corporate management for workers who want to run business after returning home. Spending contents and levels shall comply with regulations on state funding for training courses provided for officials.

4. Expenditures on inspection and assessment duties: Spending contents and levels shall comply with regulations on expenditures on inspection of implementation of policies, strategies and plans.

With respect to interdisciplinary or inter-agency inspection teams: The authority in charge of the inspection team shall cover costs of the business trip for all members of the inspection team as prescribed (including costs of travel, accommodation, transport of baggage and documents).    The authority in charge of the inspection team should request authorities having appointed their officials to attend the inspection team in writing (through written invitations or orders) not to pay these costs.

Article 14. Cost estimates and statements

1. Every year, based on deposit amounts transferred to state budget in the previous year and estimated deposit to be transferred to state budget in the current year, the relevant provincial Department of Labour, War Invalids and Social Affairs shall make estimate of expenditures on solving employment matters and sending workers abroad in the province for the planning year, and aggregate such estimated expenditures in the estimate of provincial-state budget revenues and expenditures which is then sent to the Financial Department of the same level for submission to competent authorities for consideration.

2. The provincial Department of Labour, War Invalids and Social Affairs shall make statements of relevant costs according to regulations of the Law on state budget and the Law on accounting.

Chapter VI

IMPLEMENTATION

Article 15. Transition

1. Deposit amounts made by the workers according to Point a and Point b Clause 2 Article 1 of the Decision No. 1465/QD-TTg dated August 21, 2013 of the Prime Minister piloting payment of deposit by workers to be working in Korea under the Employment Permit System Programme and deposit amounts made by workers having converted their residence visas in Korea shall be settled according to Article 7, Article 8 and Article 9 hereof.

2. Deposit amounts made by the workers according to Point c and Point d Clause 2 Article 1 of the Decision No. 1465/QD-TTg dated August 21, 2013 of the Prime Minister but not yet settled by VBSP shall be settled according to Clause 2 and Clause 3 Article 10 and Article 11 hereof.

Article 16. Responsibility of relevant authorities

1. Ministry of Labour, War Invalids and Social Affairs shall:

a) provide information, disseminate and educate laws relating to workers working abroad under employment contracts, and regulations of Vietnam and Korea on EPS Programme.

b) monitor and supervise workers’ performance of employment contracts.

c) decide to settle deposit amounts made by workers according to this Decision and notify VBSP of such settlement.

2. The Ministry of Finance shall cooperate with the Ministry of Labor, War Invalids and Social Affairs in inspecting management and use of deposit transferred to state budget.

3. Vietnam Bank for Social Policies (VBSP) shall:

a) provide guidance on procedures for receipt of deposit from workers and provision of loans to workers from VBSP for making deposits.

b) manage and settle deposit amounts made by workers according to this Decision and relevant law provisions.

c) Every six months and every year, submit reports to the Ministry of Labor, War Invalids and Social Affairs on management and use of deposit amounts made by workers, including those made with loans.

4. Each People’s Committees of province or central-affiliated city shall:

a) direct its affiliated agencies and inferior People's Committees to organize dissemination of information and provide consultancy for workers working abroad under contracts, regulations on EPS Programme of Vietnam and of Korea.

b) formulate and promulgate policies for encouraging workers working in Korea to perform employment contracts, return to Vietnam on schedule; call upon workers illegally staying and working in Korea to return to Vietnam.

c) provide guidance for workers to make deposit as prescribed.

d) manage and use workers' deposit transferred to provincial state budget for correct purposes as defined herein and relevant laws.

dd) direct the provincial Department of Labour, War Invalids and Social Affairs to submit six-month and annual reports to the Ministry of Finance and the Ministry of Labor, War Invalids and Social Affairs on use of workers’ deposit transferred to provincial state budget.

Article 17. Effect

This Decision comes into force from May 15, 2020 until the Law on Vietnamese guest workers (amended) takes its legal effect.

This Decision supersedes the Decision No. 1465/QD-TTg dated August 21, 2013 of the Prime Minister and abrogates the Joint Circular No. 31/2013/TTLT-BLDTBXH-BTC dated November 12, 2013 providing guidance on implementation of the Decision No. 1465/QD-TTg dated August 21, 2013 of the Prime Minister.

Article 18. Implementation

Ministers, heads of ministerial agencies, heads of Governmental agencies, Chairpersons of People’s Committees of provinces and central-affiliated cities, General Director of VBSP and relevant authorities, organizations and individuals shall be responsible for the implementation of this Decision./.