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How To Handle The Deposit Of Vietnamese Guest Workers? – Employee Benefits & Compensation

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A margin deposit is a kind of demand deposit or term deposit
made by a company at a bank to guarantee that the company will
fulfil a financial commitment to the bank and related parties. Do
Vietnamese workers who want to work abroad have to make a deposit,
if so, how is this deposit handled in Vietnam?

Deposit of Vietnamese guest workers

Article 25 of the Law on Vietnamese guest workers in 2020
stipulates the deposit of workers as follows:

  1. Service enterprises shall agree with workers on deposit
    payments to ensure execution of obligations according to contracts
    for the provision of Vietnamese guest worker service according to
    Vietnamese regulations or agreements with foreign employment
    receivers.

  2. Workers shall agree with service enterprises on depositing
    deposit payments in escrow accounts of workers at banks.

  3. Workers shall receive both the principal and interest of
    deposit payments when liquidating contracts for the provision of
    Vietnamese guest worker service.

    In case workers violate obligations under contracts for the
    provision of Vietnamese guest worker service, deposit payments of
    workers shall be utilized by service enterprises to pay for damages
    arising due to workers’ faults; the remaining deposit payments
    shall be returned to workers; in case of insufficient deposit
    payments, workers must submit additional deposit payments.

  4. In case of conflicts over service enterprises not paying
    deposit payments, workers have the right to request the Ministry of
    Labor – Invalid and Social Affairs or file lawsuits as per
    the law.

  5. The Government shall stipulate the maximum deposit level
    applicable to workers as suitable to each market, profession,
    occupation, or job and the management, use, and refund of
    deposits.

Thus, Vietnamese workers who want to work abroad under a
contract must deposit a deposit and the handling of the deposit is
regulated as above.

Originally published September 3, 2022

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.

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