Conditions for Granting Employment Service Operation Licenses from January 1, 2026

The Conditions for Granting Employment Service Operation Licenses from January 1, 2026 are essential contents that businesses need to master to build a foundation when participating in the labor supply market. By strictly following the correct procedures, businesses can operate stably, limit legal risks, and create a premise for sustainable development in the employment service sector. The following content will detail the conditions and implementation methods for businesses to apply easily.

Requirements regarding the head office and branches of employment service businesses.

According to the regulations in Clause 3, Article 28 of the Employment Law 2025, employment service enterprises may establish branches when the branch has facilities meeting the requirements for employment service activities and must notify the specialized labor agency of the Provincial People’s Committee where the head office is located before conducting employment service activities.

Based on Clause 1, Article 15 of Decree 352/2025/ND-CP, conditions for the head office or branch of an employment service enterprise include:

• Location Ownership or Lease: The enterprise must have a head office or branch to organize employment service activities. If the headquarters is owned by the enterprise, the Client needs to provide the Certificate of Land Use Rights and Assets Attached to Land to prove legal ownership.
• Lease Term: In case the enterprise rents a location, the house lease contract or office lease contract must have a lease term of at least 02 years (24 months). The timing for calculating this term is determined up to the time the enterprise submits the application for the License.

This regulation aims to eliminate businesses or units without long-term operational intent, causing risks to workers. A stable business location helps management agencies easily carry out inspection, examination, and supervision activities. At the same time, this is also a place for employees and employers to contact to resolve issues arising related to employment service contracts.

>>> See more: Employment Service License: A Procedural Guide

Conditions regarding deposit requirements for employment service operations.

Financial capacity is a mandatory factor to ensure the enterprise’s responsibility towards workers and partners in the human resource supply chain. Current laws require enterprises to fulfill the obligation of depositing escrow at a commercial bank before officially submitting the application for licensing. This is a risk guarantee to resolve financial obligations arising in case the enterprise violates the contract or legal regulations.

According to regulations in Clause 2 Article 15 and Clause 1 Article 16 of Decree 352/2025/ND-CP:

• Deposit Amount: The enterprise must deposit an amount of 300,000,000 VND (Three hundred million dong).
• Deposit Location: This amount must be deposited at a commercial bank of Vietnam or a foreign bank branch legally established and operating in Vietnam.
• Interest: The enterprise and the escrow bank will agree on the interest rate for the deposit in the contract, ensuring compliance with the regulations of the State Bank of Vietnam.
• Certification: After completing the payment procedure, the escrow bank is responsible for issuing a Certificate of Escrow Deposit for employment service activities.

Furthermore, Clause 2, Article 16 of Decree 352/2025/ND-CP clearly stipulates that the deposit money is only used to pay financial obligations arising when the enterprise fails to perform or insufficiently performs obligations in employment service activities as requested by the Competent Authority. These cases usually include compensating for damages to workers due to wrong advice, collecting fees contrary to regulations, or failing to strictly implement commitments in labor supply contracts.

Specifically, if the deposit money has been used to pay compensation, the enterprise is obliged to replenish the full amount of 300 million VND within 30 days from the date the money was withdrawn. This regulation forces businesses to always maintain liquidity to protect customers’ interests. If the deposit is not replenished on time, the enterprise faces the risk of license revocation.

Requirements regarding the legal representative of a business providing employment services.

Based on Clause 3, Article 15 of Decree 352/2025/ND-CP, the conditions for the legal representative of an enterprise providing employment services include:

Conditions regarding civil capacity

The legal representative of the enterprise must not fall into the category of restricted or lost civil act capacity. Specifically, according to Article 22 and Article 24 of the Civil Code 2015, the representative must not be a person declared by the court to have lost civil act capacity due to mental illness or other diseases that render them unable to perceive or control their behavior. At the same time, they must not be a person declared to have restricted civil act capacity due to addiction to drugs or other stimulants leading to the dissipation of family assets.

Verifying civil act capacity ensures that the head of the enterprise has sufficient cognitive ability to sign contracts, take responsibility before the law, and resolve complex labor disputes. For foreign-invested enterprises or foreign representatives, proving civil act capacity requires compliance with additional regulations on consular legalization of identification papers and judicial records under Article 152 of the Civil Code 2015.

Qualifications or experience requirements

The legal representative must meet one of the two following conditions regarding expertise and experience:

• Education: The legal representative must have a university degree or higher. The law does not limit specific training majors, but majors related to Law, Human Resource Management, and Labor Economics will be an advantage in the operation process.
• Experience: The representative must have at least 02 years (24 months) of working experience in the field of employment services or labor supply. This experience must be proven through legal documents such as Labor Contracts, Appointment Decisions, Resignation Decisions, or confirmation documents from the old unit.

>>> See more: Employment Service License Renewal Procedure

Long Phan Consulting provides consulting services for obtaining employment service operating licenses.

Long Phan Consulting provides comprehensive solutions, helping businesses identify compliance conditions and prepare accurate dossiers from the start, saving time and costs. We accompany clients from the condition review stage to receiving the final licensing results. We structure our support into the following key areas:

1. Appraisal and Strategic Planning

• Support 1: Assess the legality of the intended headquarters location, ensuring the lease contract meets the strict 24-month term requirement and usage purpose.
• Support 2: Conduct a detailed review of the qualifications and experience of the legal representative to ensure absolute compatibility with regulatory requirements.
• Support 3: Advise on the optimal corporate structure to meet licensing conditions while maintaining operational efficiency.

2. Financial and Banking Procedures Support

• Support 1: Provide detailed consultation on escrow procedures, helping businesses select suitable banks.
• Support 2: Assist in reviewing or drafting the escrow contract to protect the enterprise’s maximum interests regarding interest rates and withdrawal conditions.
• Support 3: Guide the enterprise through the process of obtaining the Certificate of Escrow Deposit swiftly.

3. Administrative Representation and Licensing

• Support 1: Compile the complete application dossier for the employment service operation license.
• Support 2: Represent the Client to submit the dossier and work with the competent state authority (Department of Labor, Invalids and Social Affairs).
• Support 3: Monitor the processing progress and receive the final License on behalf of the Client.

Frequently Asked Questions

Below, Long Phan Consulting provides some frequently asked questions regarding the requirements for obtaining a license to operate employment services. We invite interested clients to refer to this information:

Can a business earn interest on a deposit of 300 million VND?

Yes. Businesses and banks receiving deposits are allowed to agree on the interest rate on the deposit in the contract. This interest rate must comply with the regulations on interest rates for Vietnamese Dong deposits issued by the State Bank of Vietnam in each period.

Legal basis: Clause 1, Article 16 of Decree 352/2025/ND-CP.

From what date is the 2-year lease term for the office space calculated?

The minimum lease term is 2 years (24 months) for the head office or branch, calculated from the date the business submits the application for a license to operate employment services, not from the date of contract signing or license issuance.

Legal basis: Clause 1, Article 15 of Decree 352/2025/ND-CP.

Under what circumstances is a business entitled to withdraw its deposit?

Businesses may withdraw their deposit in one of the following cases: The license is not granted; the license is revoked, not renewed, not reissued, or has expired; the deposit has already been made at another bank; or withdrawal is required to compensate employees in case of insolvency after 60 days of default.

Legal basis: Clause 3, Article 16 of Decree 352/2025/ND-CP.

Is a business allowed to change the bank that accepts deposits?

Yes. Businesses are allowed to deposit funds at a different bank. In that case, the business is entitled to withdraw the deposited funds from the old bank after obtaining a Certificate of Deposit from the new bank to submit to the competent authority.

Legal basis: Point c, Clause 3, Article 16 of Decree 352/2025/ND-CP.

What should a business do if it has already used part of the deposit money to pay compensation?

Within 30 days from the date the deposit is used, the business is required to deposit the additional amount used to repay the deposit and ensure that the deposit level remains at VND 300,000,000 as stipulated.

Legal basis: Clause 2, Article 16 of Decree 352/2025/ND-CP.

Conclusion

Meeting fully the conditions for granting an employment service operation license according to legal regulations is a prerequisite for businesses to operate legally and sustainably. Clients need to thoroughly review records regarding headquarters, financial capacity, and management personnel to avoid the risk of license refusal or administrative penalties.

Long Phan Consulting Company is ready to provide in-depth advice to optimize this process. Please contact us via Hotline 1900636389 for timely and professional support.