| THE MINISTRY OF LABOR, WAR INVALIDS AND SOCIAL AFFAIRS THE MINISTRY OF JUSTICE ------- | SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness ---------- |
| No: 06/2006/TTLT-BLDTBXH-BTP | Hanoi, July 07, 2006 |
JOINT CIRCULAR
PROVIDING GUIDANCE ON GUARANTY FOR LABORERS GOING TO WORK ABROAD
Pursuant to the June 14, 2005 Civil Code;
Pursuant to the Government's Decree No. 141/2005/ND-CP of November 11, 2005, on management of Vietnamese laborers working abroad;
Pursuant to the Government's Decree No. 29/2003/ND-CP of March 31, 2003, defining the functions, tasks, powers and organizational structure of the Ministry of Labor, War Invalids and Social Affairs;
Pursuant to the Government's Decree No. 62/2003/ND-CP of June 6, 2003, defining the functions, tasks, powers and organizational structure of the Ministry of Justice,
In order to ensure uniform guaranty for laborers going to work abroad, the Ministry of Labor, War Invalids and Social Affairs and the Ministry of Justice hereby jointly guide guaranty for laborers going to work abroad as follows:
I. GENERAL ISSUES
1. Guaranty for laborers going to work abroad
a/ Guaranty for laborers going to work abroad means an act whereby a third person (hereinafter referred to as the guarantor) gives an enterprise sending laborers to work abroad (hereinafter referred to as the guarantee) an undertaking to perform obligations on behalf of laborers going to work abroad (hereinafter referred to as the guaranteed) when the guaranteed fails to perform or improperly or incompletely performs his/her obligations falling due towards the guarantee. The parties may also agree that the guarantor shall perform obligations only when the guaranteed is incapable of performing his/her obligations.
b/ The guarantee may request the guaranteed to recommend a guarantor who meets all the conditions specified in Clause 1, Article 16 of the Government's Decree No. 141/2005/ND-CP of November 11, 2005, on management of Vietnamese laborers working abroad, and is accepted by the guarantee for signing a guaranty contract.
2. Scope of guaranty:
The guarantor shall reach agreement with the guarantee on the provision of guaranty for part or the whole of the following obligations:
a/ To pay service charges which the guaranteed fails to pay, if any;
b/ To pay compensations for damage caused to foreign partners and other damage caused by breach of contract on the part of the guaranteed;
c/ To pay fines for breach of contract, if so agreed upon in the overseas working contract;
d/ To pay interests on guaranteed amounts which are paid lately. These interests shall be calculated at the basic interest rate announced by the State Bank at the time of payment for the late payment duration, unless otherwise agreed by the parties or provided for by law;
e/ Other obligations of the guaranteed as agreed upon by the parties which are neither prohibited by law nor contrary to social ethics.
The scope of guaranty shall cover all obligations of the guaranteed, unless otherwise agreed upon by the parties or provided for by law.
3. Time limit for performance of guaranty obligations
The time limit for performance of guaranty obligations shall be agreed upon by the guarantor and the guarantee; if the two parties have no agreement thereon, the guarantor shall perform guaranty obligations within a reasonable time limit set by the guarantee, counting from the time the guarantor receives the guarantee's notice on the performance of obligations on behalf of the guaranteed.
4. Form and contents of guaranty contracts
a/ Guaranty contracts shall be made in writing.
b/ Guaranty contracts shall be made by involved parties, covering the following principal contents: scope of guaranty; rights and obligations of contractual parties; time limit for performance of guaranty obligations; and settlement of guaranty.
5. Application of measures to secure the performance of guaranty obligations
a/ The guarantee may agree with the guarantor on the application of such measures as pledge of property, mortgage of property or deposit so as to secure the performance of guaranty obligations.
b/ The pledge, mortgage and deposit shall be made in writing, either in a separate document or incorporated in the guaranty contract.
c/ The establishment and application of the measure of pledge of property, mortgage of property or deposit to secure the performance of guaranty obligations shall comply with the provisions of the Civil Code and relevant legal documents.
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