Labour and Employment

Company sponsors a foreigner who then quits and disappears: what is the company’s liability?

Empty office cubicles — sponsor company liability when a foreign worker quits

A company sponsors a foreign worker, who after some time quits without notice and disappears — a situation not uncommon in practice. Many companies are unsure of their obligations, and “staying silent” is the riskiest option. This article sets out what the company must do, and the consequences of doing nothing.

1. Three things the company must do immediately

(i) Send a written notification to the immigration management authority. This fulfils the duty under point e, Clause 2, Article 45 of Law No. 47/2014/QH13 (consolidated text VBHN 62/VBHN-VPQH): when sponsorship is no longer needed, the sponsoring entity must notify the immigration management authority in writing. The notice should state: the worker’s full name and passport number; when they quit/went missing; the termination of the employment relationship.

(ii) Terminate the labour contract and handle the work permit. Complete the contract termination procedures; revoke or decline to renew the work permit and notify the Department of Home Affairs — the work-permit issuing authority under Decree 219/2025/ND-CP (effective 7 August 2025, replacing Decree 152/2020/ND-CP).

(iii) Keep the complete file proving full sponsorship duties were performed. Including: the notification sent to immigration (with receipt confirmation), the record of the worker quitting/disappearing, and the contract termination decision. This is the most important basis for the company not to be deemed as having “failed to perform sponsorship duties properly” during inspections — never skip this step.

2. Silence = risk of a VND 20–25 million fine

If the company knows the worker has quit and gone missing but fails to notify the authorities in writing, the conduct may be treated as failure to perform sponsorship duties properly → a fine of VND 20–25 million under point a, Clause 7, Article 21 of Decree 282/2025/ND-CP (completing invitation/sponsorship procedures but failing to perform duties properly, or making untruthful declarations). Decree 282/2025 replaced Decree 144/2021/ND-CP from 15 December 2025.

Note: some secondary sources cite “VND 40–50 million” for this case — that is wrong; the original text (Official Gazette) confirms VND 20–25 million.

3. Continuing to employ or house a worker known to reside unlawfully

If the company continues to employ the foreign worker or lets them stay at its premises while knowing they reside unlawfully, and fails to notify the competent authority → a fine of VND 20–25 million under point dd, Clause 7, Article 21 of Decree 282/2025/ND-CP.

4. Regarding the worker who quit

A foreign worker who quits and overstays in Vietnam faces fines under the overstay scale in Article 21 of Decree 282/2025/ND-CP and may be expelled under Decree 59/2026/ND-CP. A company that has completed the three steps in section 1 bears no substitute liability for the worker’s own violations.

5. The criminal boundary: a warning, not speculation

Criminal liability arises only where the company deliberately harbours or assists the worker in staying in Vietnam unlawfully for profit — then the offence of organizing or brokering unlawful entry/exit or stay in Vietnam (Article 348 of the Penal Code, 1–15 years depending on severity) may be considered. A company that duly performs its notification duty as in section 1 faces no criminal issue.

FAQ

Q: Does an email to immigration count as “written notification”?
A: The law requires written notification; companies should submit a paper notice with receipt confirmation (or use official channels with receipts) to have solid evidence when needed.

Q: The worker was absent without leave for a few days then returned — must we notify?
A: The notification duty arises when sponsorship is no longer needed (point e, Clause 2, Article 45). A short absence followed by normal return means the employment and sponsorship relationship continues, so the duty has not arisen — but an internal record of the incident is prudent.

Q: After notifying, is the company jointly liable if the worker later violates?
A: The sent notification and the complete archived file are precisely the evidence that the company performed its sponsorship duties properly — a shield against allegations of failure.

Cited legal sources

  • Law No. 47/2014/QH13 (VBHN 62/VBHN-VPQH) — Clause 2, Article 45.
  • Decree 282/2025/ND-CP (effective 15 December 2025, replacing Decree 144/2021) — points a and dd, Clause 7, Article 21.
  • Decree 219/2025/ND-CP (effective 7 August 2025, replacing Decree 152/2020) — work permits issued by the Department of Home Affairs.
  • 2015 Penal Code (amended) — Article 348.
  • Decree 59/2026/ND-CP (effective 1 April 2026) — expulsion.

This information is for reference only and does not constitute legal advice.

This content was prepared by AI and is pending review by the AI Legal Council; it has not been approved by a human lawyer.

See also: work permit conditions for foreign workers in Vietnam; new work permit rules for foreign workers 2026.

Need a review of your foreign-worker sponsorship obligations? Contact FLAT Law Firm.