What would happen if you miss the deadline for extending a foreign worker’s work permit or make errors during the process? You may unintentionally cause significant consequences such as suspension of key personnel, project delays, or even legal violations with considerable penalties. As a result, the enterprise’s operations may become disrupted and unstable. In this article, KMC will provide a comprehensive overview and practical recommendations to help FDI enterprises proactively manage the process and avoid unnecessary risks.
Why Is the Extension of Work Permits for Foreign Employees Important for FDI Enterprises?
Operational disruption risk
When a work permit expires, foreign employees are required to cease working. This may delay projects or even paralyze operations if the employee is a key personnel.
Monetary penalties
Pursuant to Decree 28/2020/ND-CP, enterprises may be fined up to VND 90 million, and individual employees may be fined up to VND 45 million for working without a valid work permit.
Residency management consequences
A work permit is the basis for extending a temporary residence card. Therefore, failure to extend the work permit for foreign employees may create a complex chain of administrative issues, increasing time and cost for remediation, and reducing the enterprise’s credibility in the eyes of partners and regulatory authorities.
Work Permit Extension Process for Foreign Employees
Timing and eligibility conditions
The application for work permit extension must be submitted within 5 to 45 days prior to the expiration date of the existing work permit. Submissions made earlier than 45 days or later than 5 days before expiry will not be accepted. Notably, a work permit can only be extended once. Upon the next expiry, the enterprise must carry out a full new application procedure.
Document preparation
For the application dossier, the following documents must be carefully prepared:
- Application form for extension using Form 11/PLI issued by the employer
- Original work permit that is about to expire
- Approval document for the demand to employ foreign workers issued by the competent authority (previously registered)
- Copy of a valid passport
- Medical examination certificate issued within the last 12 months by a district-level or higher medical facility in Vietnam
- 02 passport-sized photos (4×6, white background, taken within the last 6 months)
- Documents proving continued employment with the enterprise (e.g., decision on continued appointment, new labor contract, etc.)
Note: All documents and qualifications issued abroad must be legalized by consular authentication and translated into Vietnamese with notarization.
Submission Procedure and Processing Time
After completing the application dossier, the enterprise shall submit it directly to:
- Ministry of Labour – Invalids and Social Affairs: for branches/representative offices of multinational corporations.
- Department of Labour – Invalids and Social Affairs at the location of the head office: for most FDI enterprises operating locally, including those in industrial parks and export processing zones.
Processing time: According to regulations, the competent authority will process and issue the extended work permit within 05 working days from the date of receipt of a complete and valid application dossier.
The extension of work permits for foreign employees is not merely an administrative procedure but also a risk management strategy to ensure continuous business operations. If you wish to save time and resources, you may use advisory services of KMC. With many years of experience in providing comprehensive legal and tax support to hundreds of FDI enterprises, we assist you in completing the extension procedure smoothly. In addition, KMC also accompanies you in building a sustainable compliance management system, allowing you to fully focus on your core business activities
