ABOLISHMENT OF THE EMPLOYMENT SERVICE OPERATING LICENSE: WHAT SHOULD BUSINESSES NOTE?

Many enterprises engaging in employment service activities remain uncertain about the procedures applicable in 2026, as employment service activities are regulated by Decree No. 352/2025/ND-CP and Resolution No. 66.18/2026/NQ-CP, which introduce various changes to the conditions for obtaining a license, administrative procedures, and notification obligations during operation. Enterprises currently operating or preparing to enter this sector need to comply with the applicable regulations to minimize risks. The following article by Lexsol analyzes the new regulations and key considerations that enterprises should apply.

1. Definition

An enterprise engaging in employment service activities is an enterprise that performs activities to connect employees with enterprises, including the following activities[1]:

1.1. Providing employment counseling to employees.

1.2. Providing employment placement services to employees.

1.3. Supplying and introducing employees to enterprises.

1.4. Other activities such as collecting, analyzing, storing, and providing information on the labor market.  

2. Conditions for employment service activities[2]

2.1. Having a head office or branch of the enterprise, or premises leased by the enterprise under a contract for organizing employment service activities, with a remaining lease term of at least 02 years (24 months) as of the date on which the enterprise submits the application for the employment service operation license.

2.2. Having made a deposit of VND 300,000,000 (three hundred million Vietnamese dong) for employment service activities.

2.3. The legal representative of the enterprise conducting employment service activities must not have restricted or lost civil act capacity; have at least a university degree or at least 02 years (24 months) of experience in the field of employment services or labor supply.

3. New regulations on employment service activities 

3.1.  Reduction of administrative procedures 

According to Decree No. 352/2025/ND-CP, enterprises engaged in employment service activities must satisfy the required conditions and undergo procedures to obtain an Employment Service Operation License. However, starting from July 1, 2026, these procedures are streamlined under Resolution No. 66.18/2026/NQ-CP, which was promulgated to simplify administrative procedures and ease the workload for competent state authorities. 

Accordingly, Resolution No. 66.18/2026/NQ-CP stipulates the non-implementation of regulations regarding the License form, as well as the dossiers and procedures for the issuance, re-issuance, extension, and revocation of the Employment Service Operation License; it also waives the escrow deposit withdrawal procedure for employment service enterprises[3]. 

Enterprises should note that the procedure reduction mechanism for employment service activities under Resolution No. 23/2026/NQ-CP takes effect from July 1, 2026, until the end of February 28, 2027.

3.2. Notification of operation 

As the procedures for the employment service operation license have been reduced, enterprises wishing to conduct employment service activities are instead required to notify the Department of Home Affairs where their head office is located of such activities. 

Within 20 working days from the date of commencement of employment service activities, the enterprise must publicly announce through mass media the following information: location, business fields, legal representative, website, email address, and telephone number.

Within 5 working days before the date of commencement or termination of employment service activities, the enterprise must notify the Department of Home Affairs where its head office is located through the National Employment Service Exchange. 

If the enterprise changes the location of its head office, it must submit a written notification to the Department of Home Affairs where the new head office is located within 10 working days before the date of relocation[4]. 

4. Common mistakes 

Below are some common mistakes enterprises may make with respect to these new procedures: 

4.1. Mistakenly assuming that the conditions set out in Section 2 are no longer required. The removal of the registration procedure does not mean that the business conditions have been removed. 

4.2. Commencing employment service activities before notifying the Department of Home Affairs. 

4.3. Failing to clearly understand the notification procedures for employment service activities.

4.4. Failing to notify the Department of Home Affairs when there is a change in the location or termination of employment service activities.

4.5. Overlooking the obligation to periodically report the results of employment service activities every 06 months or annually.

There are also other mistakes that enterprises should take note of under the new legal regulations.

5. Conclusion

The transition from a registration procedure to a notification procedure for employment service activities significantly simplifies the administrative process, creating favorable conditions for enterprises to quickly enter the market. However, to avoid legal risks and administrative penalties, enterprises need to proactively review and ensure that all conditions regarding the deposit, personnel, and premises are continuously maintained, while also fulfilling notification and periodic reporting obligations within the prescribed deadlines under applicable laws.

If you have any concerns regarding this matter, please contact Lexsol for timely assistance. Lexsol can assist in reviewing specific circumstances before the enterprise carries out the relevant procedures.