Labor Compliance
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Labor Law Compliance in Vietnam: What Employers Must Know
- 20 September 2025
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- by Stephen Le
Vietnam’s economy continues to expand, attracting a growing number of foreign-invested enterprises and fast-scaling domestic companies. With this growth comes heightened scrutiny from regulators and increasingly complex labor laws. The 2021 Labor Code and its subsequent guidance documents have shifted the compliance landscape, placing greater responsibility on employers to understand and implement detailed legal requirements. Labor law compliance is no longer just an administrative formality-it is now a strategic necessity. Non-compliance can lead to government inspections,...
Workplace Democracy in Viet Nam
- 25 July 2025
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- by Hannah Huynh
Vietnam’s labor laws now require more than just good HR policies, they demand structured dialogue and transparency. From ad-hoc consultations to information disclosure, workplace democracy regulations are now a legal obligation under the Labor Code. Failure to comply could invalidate employer decisions and trigger penalties. In this post, Hannah Huynh explains what employers need to do to meet these requirements and avoid legal risk.
Key Questions on Criminal Liability for Illegal Dismissal
- 29 April 2025
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- by Hannah Huynh
Question 1: Can illegal termination of employment be prosecuted as a crime? The prevailing Vietnamese Criminal Code states that employers who unlawfully dismiss employees for personal gain or other unjust motives can face criminal charges. The penalties for such actions vary based on the severity of the offense and may include: Fines of up to 200 million VND (approximately 8,000 USD); Non-custodial sentences of up to 1 year; Imprisonment ranging from 3 months to 3 years....
Key Questions on Workplace Democracy Regulations
- 21 April 2025
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- by Hannah Huynh
Question 1: Why do workplace democracy regulations matter? The Government of Vietnam requires higher standards of democracy to fulfill its commitments regarding labor standards in free trade agreements, including the EU-Vietnam Free Trade Agreement and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. As a result, starting from January 1, 2021, the Labour Code of 2019 and its implementing provisions mandate dialogues in the workplace and the establishment of democratic regulations. In addition to annual periodic...
