To print this article, all you need is to be registered or login on Mondaq.com.
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:
- 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
- Workers shall agree with service enterprises on depositing
deposit payments in escrow accounts of workers at banks.
- 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.
- 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 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
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.
POPULAR ARTICLES ON: Employment and HR from Vietnam