Vietnam passes law to protect migrant workers from financial risks

The National Assembly has passed amendments to the Law on Vietnamese Workers Working Abroad under Contract, set to take effect on March 1, 2027. The new regulations aim to protect migrant workers, particularly women, from financial risks and debt.

Key changes include restricting service enterprises from collecting vocational training, language, and skill development fees until after a worker has been selected by a foreign employer and has signed a labor contract. This measure is designed to prevent workers from losing money on training for jobs that may never materialize. Additionally, the law establishes a maximum 180-day waiting period for departure following selection. If a company fails to facilitate departure within this timeframe, they must compensate the worker for damages and refund service fees, minus reasonable actual costs.

The law also mandates increased transparency by requiring service enterprises to notify local People's Committees at least three days before recruitment activities begin.