In foreign personnel management, while obtaining a new Temporary Residence Card is often the focus of enterprises, the procedure for revoking the TRC upon an employee’s resignation is frequently overlooked. This negligence can lead to serious legal risks and administrative fines of up to tens of millions of VND. So, why must the TRC be revoked? What is the procedure to ensure corporate safety? Let’s explore this in detail with Wacontre in the article below.
What is a Temporary Residence Card (TRC)? Responsibility of the Enterprise
A Temporary Residence Card (TRC) is a document issued by the immigration management authority to foreigners permitted to reside for a fixed term in Vietnam and serves as a substitute for a visa. According to the Law on Entry, Exit, Transit, and Residence of Foreigners in Vietnam, the sponsoring enterprise is responsible for managing the activities and residence of the employee throughout their employment. When the labor relationship terminates, this responsibility does not automatically vanish; the enterprise must perform the final step: Revoking and returning the TRC to the competent authorities.
Why Must the TRC Be Revoked? 5 Core Legal Reasons
Revoking the TRC is not just an administrative procedure but a vital measure to protect the immediate interests of the sponsoring entity.
1. Termination of Sponsoring Liability
As long as the TRC remains valid under the company’s name, the entity is still legally liable for all actions of the foreigner in Vietnam. Revoking the card is the only way to officially “sever” this joint liability.
2. Preventing Misuse of the Card
There are many cases where foreigners, after quitting, still use their old cards to stay illegally or work for another entity without permission. If detected, the former enterprise (the sponsor named on the card) will be implicated and evaluated for lax personnel management.
3. Dissolution or Change of Legal Status of the Sponsor
When a company ceases to exist or changes its business type, all personnel-related legal documents must be settled and revoked to update the national management system.
4. Facilitating Visa Conversion for Employees
For a foreigner to move to a new company or apply for an Exit Visa, they are required to return their old TRC. Revocation ensures this process is transparent and compliant with regulations.
5. Avoiding “Blacklist” Risks
The Immigration Department strictly monitors the performance of sponsoring entities. If a company has multiple cases of employees resigning without reporting or returning cards, future sponsorship applications for new personnel will be under extreme scrutiny or rejected.
Penalties for Failure to Revoke TRC (2026 Update)
According to Decree 282/2025/NĐ-CP (effective from early 2026), penalties for residence management violations have increased significantly:
- For Enterprises: Failure to notify the immigration authority or return the TRC can result in fines from 15,000,000 VND to 25,000,000 VND.
- For Foreigners: Using an expired or improper TRC can be fined from 5,000,000 VND to 40,000,000 VND, and may even result in the additional penalty of deportation.
Lawful TRC Revocation and Cancellation Procedure
To comply with regulations, the HR department needs to prepare a application file and follow these steps: Application file Components:
- Notification form for returning the TRC (Explaining the reason: resignation, job change…).
- Original TRC of the foreigner.
- Original Passport (for authorities to stamp the cancellation or issue a short-term visa).
- Copy of the Enterprise’s Business License/Investment Certificate.
- Labor contract termination document or resignation decision.
Execution Process:
- Step 1: Revoke the card from the employee immediately upon signing the work handover minutes.
- Step 2: Submit the application file directly to the Immigration Department (Hanoi or Ho Chi Minh City) or the Immigration Office of the provincial/city police where the headquarters is located.
- Step 3: Wait for processing (usually 5-7 working days). Authorities will cancel the card’s validity on the system and issue an Exit Visa for the employee.
Handling Cases Where Foreigners Deliberately Refuse to Return the Card
This is a “headache” for many businesses. If the employee is uncooperative, the enterprise should:
- Send a written notice to the Immigration Department to terminate sponsorship and request the cancellation of the TRC.
- Attach evidence showing the company’s efforts to contact/revoke the card without success.
- After receiving the notice, authorities will update the “Cancelled” status on the national system, absolving the enterprise of legal liability.
Professional TRC Revocation Service by Wacontre
Instead of facing complex administrative procedures and the risk of application file rejection alone, let Wacontre support you. We provide a comprehensive TRC revocation service with the following advantages:
- Speed: Procedures completed in 3-5 working days.
- Expertise: Handling difficult cases such as lost cards, uncooperative employees, or those who have already left Vietnam.
- Cost-effective: Minimizing travel costs and the risk of administrative fines for the enterprise.
- Full-package: Supporting everything from drafting documents to obtaining the successful cancellation result.
Don’t let small errors in TRC management affect your company’s reputation and operations.
If you have any questions, please contact our Hotline at (028) 3820 1213 or email us at [email protected] for prompt consultation and support. With an experienced team, Service thanhlap.wacontre.com is always ready to serve customers in the most enthusiastic and efficient manner. (For Japanese customers, please contact Hotline: (050) 5534 5505).
