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Quota Approval Services for employee import and utilization of Labour and Social Welfare Sector

Labour and Social Welfare Sector has functional roles and responsibilities in approving the quota for foreign employee import and utilization in enterprise units established in Lao PDR, by sharing the following responsibilities with central level (Ministry) and local levels (provinces/Vientiane Capital):

 1. Ministry of Labour and Social Welfare (LSW).

  1. Study, set policies, create juristic acts and regulations on the management and utilization of foreign labourer import;
  2. Study and approve quota or requirement plan of annual foreign employee utilization based on the proposal of provincial and municipal LSW Sectors, with the concurrence of provincial and municipal leading committees, in line with the employee utilization need in provincial and municipal social-economic development;
  3. Approve the import, registration, issuance and renewal of work permit cards to foreign employees working in the investment projects of Government’s preferential rights, that require communication with various localities or provinces;
  4. Inspect - follow up the process of approving the import, registration, issuance and renewal of work permit cards to foreign employees of provincial and municipal LSW Sector;

 

2. Provincial and municipal Labour and Social Welfare Sections.

  1. Create annual plans of foreign employee import and utilization, based on actual requirement of labour units and projects in their localities, with certification from provincial and Vientiane Capital authorities, for submission to the Ministry (Skill Development and Employment Department) at the beginning of every September for study, consideration and approval;
  2. Approve the import, registration, issuance and renewal of work permit cards to foreign employees working in Special Economic Zone, Specific Economic Zone, labour units and projects located in their localities in accordance with the quota, duration and technical knowledge which are periodically approved by the ministry, by using computer system supported by the ministry;
  3. For labour units or projects located in many provinces, the approval of import, registration, issuance and renewal of work permit cards to foreign employees shall be conducted at the provincial LSW Section where the labour units, projects are located;
  4. Regulate and inspect labourers in all labour units and in both domestic and foreign investment projects located in their localities regardless sizes, types or values of the investment;
  5. Solve problems of foreign employees who earn the livings, perform trading and work illegally with harmonious cooperation from the concerned sectors of provinces, municipal and districts;
  6. Collect levies and service fees for registration, issuance and renewal of work permit card for foreign employees in accordance with the regulations;
  7. Sharing of income from levies and fined charges shall follow the implemented regulations of Ministry of Finance;
  8. Summarise and report the data of import permission and export registration and work permit card renewal, as well as the income from collecting levies and service fees, and regularly submit to the Ministry (Skill Development and Employment Department) on monthly, 3-month, 6-month and annual bases.
  9. Assure the above tasks are strictly implemented according to the rules;

 

3. Labour and Social Welfare Office of district

  1. Facilitate, inspect the implementation of Labour Law in labour units and in domestic and foreign investment projects under the district responsibilities,regardless of investment sizes, types or values;
  2. Solve problems of foreign employees who earn the livings, perform trading and work illegally in the district by issuing work permit for the employees with no more than 60 days or 2 months validity. After that, the office shall compose the complete documents in accordance with the regulations of immigration and emigration and work permit in Lao PDR in order to propose and request the work permit at provincial and municipal LSW Sectors according to the regulations;
  3. Allow the collection of levies and service fees for issuance and renewal of work permit card to foreign employees in accordance with the regulations;
  4. Sharing of income from levies and fined charges shall follow the implemented regulations of Ministry of Finance;

 

4. Terms of requesting the approval for the import and utilization of foreign labourers of labour units or projects.

  1. Be labour units or projects with legally authorized business license;
  2. Must have more than 50 million Kip of registered fund;
  3. Must have at least 10 Lao employees or more;
  4. Compose complete forms set by Skill Development and Employment Department;
  5. Pay complete commitment fees as per the regulations;
  6. Be a skilled labourer,have relevant knowledge for the required position;
  7. Have clear biography, do not escape from any crime and enter into Lao PDR to work;
  8. Must be 20 years of age and above;
  9. Must transfer technical knowledge to Lao employee;
  10. Must follow rules and regulations, and traditions of the Lao PDR;
  11. Healthy with no contagious disease;


Remarks: The approval of quota for foreign labourer utilization is based on the regulations stipulated in Article 25 of Labour Law: The maximum physical labourer must not be more than 15% and intellectual labourer must not be more than 25% of Lao labourers in that labour unit.

 

5. Submission of documents to request the quota, the import andthe utilization of foreign labourers.

  • For investment projects of Government’s preferential rights with communication with a lot of localities or provinces, if the projects want to request the quota, the approval of import, registration, issuance and renewal of work permit cards for foreign labourers working in Lao PDR, they can submit the form of applying for foreign labourer utilization quota to Skill Development and Employment Department, Ministry of LSW.
  • For labour units with projects located in localities (provinces or Municipal, Special Economic Zone-Specific Economic Zone), submit the form to request the quota, the import, registration, issuance and renewal of work permit cards for foreign labourers to provincial or municipal LSW Sectionin accordance with the quotas, time frame and technicians approved by Ministry of LSW.
  • The approval of foreign labourer utilization quotais processed in line with Article 25 of Labour Law andthe request can be submitted once per year or twice a year in necessary case.

 

6. Procedures and documents required for the request of quota, import, LA-B2 business visa for entry into Lao PDR and issuance of Work Permit for foreign labourers.

A.  Step 1: Request of quota

Labour units/projects requesting the approval of foreign labourer annual import quota shall follow the following steps:

1)      In case labour units/projects are located in a province or the foreign technical officers are working in a province, the request shall be submitted to LSW Section of that province and if the head office is located in Vientiane Capital or foreign technical officers work for the head office in Vientiane Capital, the request shall be submitted to LSWS ection of Vientiane Capital where the application for quota will be forwarded to Ministry of LSW (Skill Development and Employment Department)to study and consider the approval at the beginning of every September;

2)      But in case the labour units/projects are located in many provinces, i.e. the project that covers two provinces or more, the request shall be submitted to Skill Development and Employment Department of Ministry of LSW;

 

1)      Complementary documents:

  1. Request and plan of foreign employee utilisation (form of LSW sector depends on the aforementioned case);
  2. Copy of investment license, concession registration certificate or enterprise registration certificate;
  3. Business operation license or the concerned turnkey project contract (if any);
  4. Copy of factory or company establishment license;
  5. Copy of last month salary tax payment, with the company list of all Lao employee;

2)      Time frame for consideration:               not more than 2 weeks.

Remarks: Foreign labourers must not be more than 15% of Lao labourers for physical labourers and not more than 25% for intellectual labourers. But there will be an exception in some cases: large-scale projects (electricity, mines and others whose preferential rights are of the Government) and that needs to be considered and certified by concerned sectors.

B. Step 2: Application for import

After receiving a quota, labour units/projects requesting foreign employee import can apply via the section/Ministry of LSW. After receiving the import license, the next step will be to verify the biography (Black list) at Immigration and Emigration Department of Ministry of PS and then apply for LA-B2visa at Consular Department of Ministry of Foreign Affairs for entry permission into Lao PDR. Labour units/projects must declare in the proposal that the applicant will exit from Lao PDR and collect the LA-B2 visa somewhere, for example: Lao embassy or consulate in a foreign country or at visa-on-arrival office at an international check-point of Lao PDR, which Consular Department will issue the visa-on-arrival authorization to investors for applying at visa-on-arrival unit to get the entry visa in to Lao PDR.  The authorizing procedures will take 8 official working days from the date received by OSS.

 

 1)      Complementary documents: 

  1. Approval of quota issued by LSW sector (original and1 copy);
  2. Request (form of LSW sector);
  3. Name list of employees (form of LSWsector);
  4. Guaranty from employer (form of LSW sector);
  5. Biography of foreign employees (form of LSW sector);
  6. Copy of passport;
  7. Copy of investment license, concession registration certificate or enterprise registration certificate);
  8. Copy of business operation license or relevant turnkey project contract (if any);
  9. Copy of approval for factory or company establishment;
  10. 4 photos of 3x4 size;

2)      Time frame for consideration:   not more than 1 week.

C.  Step 3: Application for registration and work permit card issuance

Application for registration and work permit card issuance must be submitted through sections or Ministry of LSW (see above functional roles).The work permit card has its validity of 3 months, 6 months and 1 year, and not longer than 4 years in total.

1)      Complementary documents: 

-        Request and original documents requesting permission to import foreign employees(in Step 2)

-        Permission of foreign employee import issued by LSW sectors

-        Copy of passport andvisaLA-B2.

2)      Time frame for consideration:   Not more than 1week

D.  Renewal of work permit card for foreign employees.

Work units/projects requesting work permit card renewal will be issued with a new card by LSW sectors.

1) Complementary documents:

-        Request (form of LSW Sector)

-        Biography of foreign employees(form of LSW Sector)

-        Labour contract paper (renewed)

-        Expired work permit

-        Copy of passport

-        Salary tax payment

-        Certificate of behaviour

-        Copy of investment license, concession license or enterprise registration certificate)

-        Copy of business operation license or relevant turnkey project contract (if any)

-        Copy of the approval for factory or company establishment

2) Time frame for consideration:   Not more than1week

 

7. Levies and service fees:

  1. Fee of Application form for quota import: 10,000 Kip/1set (one set for each company);
  2. Fee of Application form for foreign labourer import: 10,000 Kip/1set (1 person/1set)
  3. Service fee for approval paper of foreign labourer import quota: 50,000 Kip/time/1 company (except for a necessary case)
  4. Service fee for the issuance of stay permit card: 50,000 Kip/card (same fee is applied for card renewal)
  5. Service fee for the issuance of stay permit card: 120 dollars/year (10 dollars/month) (same fee is applied for card renewal)

Remarks: For Vietnamese labourers working in the investment regions of Lao-Vietnamese governments, fee collection: 4 US dollars per person per month.

 

8. Document submission to request stay permit card (SP Card) and multiple-entry visa for foreign employees.

            After the foreign employees have obtained LA-B2 visas and entered the country and received Work Permit from LSW Section/Ministry, they can apply for Stay Permit Card(SP Card) from Foreigner Management Department, Ministry of PS and apply for multiple entry-exit visas from Consular Department, Ministry of Foreign Affairs.

 

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Last update: 10 November 2016.