The Workers Rights 
Hiring foreign talent in the Lao involves more than securing an entry visa. Employers face a careful approval procedure, one which involves consultations with labour, foreign affairs and immigration departments, and also complies with foreign worker quotas.
It’s vital for businesses looking to hire foreign workers to comprehend the connection between the LA-B2 visa, Work Permit Card and Stay Permit. Implementation of any required authorization can pose compliance risk for employers as well as foreign employees.
Laos’ Foreign Workforce Quotas
The set labour law presumes that employers will first hire Lao nationals with the exception of foreign nationals. The foreign workforce limits are respectively 15% or 25% against the number of hands that are registered employment in the company as Lao employees, physical or manual labour or specialized or technical labour.
The Ministry of Labour and Social Welfare requires the employers to make a Foreign Worker Quota Request prior to commencing the visa application process individually for each job concurrently. Employers are required to: Justify the need for international recruitment, demonstrate their efforts with respect to local recruitment and submit evidence of financial stability of the application.
It is explained that an application may be made for greater numbers of foreign labour by businesses falling under the framework of a designated Special Economic Zone authority.
Three-Part Permit System
Typically, three documents are necessary to be legally employed. The LA-B2 Work Visa is issued by the Ministry of Foreign Affairs or Lao consulates and can be valid for 3, 6 or 12 months.
This card which is awarded by the MLSW is the document that grants permission to the foreign national to undertake a particular set of tasks with the sponsoring employer. It is issued concurrently with the LA-B2 visa’s validity.
The third condition is for a ‘Stay Permit’ from the Ministry of Public Security’s Immigration Department. It gives legal permanent residency and is acquired on arrival in conjunction with the work permit application.
From Quota Approval to Employee Onboarding
This procedure starts with the approval and submission of the foreign labour utilization plan by the company/employers. Approval of the quota will let the employer submit the candidate’s qualifications, employment contract and sponsorship documents for an application for visa approval.
After that the candidate gets the LA-B2 visa from the Lao embassy in the country where they are residing, or hold approval letter as appropriate. Once the employee has come to Laos, he/she will follow the health screening, residential registration and biometric procedures as specified within the period.
The employers should, in addition, register with the National Social Security Fund (NSSF) and register eligible employees with the PIT.
Compliance Risks Employers Should Avoid
FTE visa, tourist visa, e-Visa and conventional business travel visa can lead to significant compliance issues. It is the responsibility of the employer to ensure that the foreign worker has the right to work as an operator before they start their jobs.
It also includes the fact that the work is limited with a 5 year cumulative work authorization period under typical conditions, with an exception to 5-year extensions. Moreover, if fixed-term contracts are entered into for a period of more than three years in a row, there could be risk of the employment being converted into a permanent contract.
FAQs
What can be the LA-B2 visa?
Employment-related entry visa for foreign workers upon fulfilment of the requisite quota and sponsorship.
How many foreigners are allowed to work in Laos?
The rules provided will set the 15% and 25% caps for physical/man labour and specialized/technical roles, respectively.
Are foreign employees required to have a Work Permit and a Stay Permit?
Yes. To legally work in Japan, you need to obtain other documents, such as the Work Permit Card and Stay Permit, along with the LA-B2 visa.
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