Labor & Employment
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Important Suggestions for Amending the Labor Code
- 05 March 2018
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- by Hannah Huynh
The Ministry of Labor – Invalids and Social Affair (MOLISA) collected opinions on the application file for the formation of the amended Labor Code from December 18, 2017 to January 18, 2018 (please see the Vietnamese content here). Until a detailed draft of the amended Labor Code is circulated, it is not possible to accurately assess the new regulations. However, after reviewing the contents of the application file, we can anticipate the amendment of several key...
How to Convince Employees to Join the Trade Union?
- 15 November 2017
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- by Hannah Huynh
The employee is free to join Trade Unions. Joining a Trade Union is at the employee’s own discretion and nobody has right to enforce such participation. This leads to a situation where although the enterprise wishes to establish a Grassroots Trade Union (GTU), it cannot do so if all the employees are not willing to join the GTU. In other cases, an enterprise has established its GTU, but a number of employees are not willing to...
Criminal Liability for Labor Violations under the 2015 Criminal Code
- 12 November 2017
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- by Hannah Huynh
From January 01, 2018, Criminal Code No.100/2015/QH13 dated November 27, 2015 and Law No.12/2017/QH14 dated June 20, 2017 amending and supplementing some articles of Criminal Code No.100/2015/QH13 (referred to as the “2015 Criminal Code”) shall come into effect. Accordingly, some violations of the labor law shall be subject to criminal liability, typically: Crime of forcing a civil servant or a public employee to resign or dismissing an employee illegally This crime is provided in Article 162...
Should an Employee Opt For a Lump-Sum Social Insurance Payment or a Pension?
- 08 November 2017
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- by Hannah Huynh
Recently, according to factual statistics, the number of employees requesting a lump-sum social insurance (“SI”) payment has strongly increased. This is the result of many factors, but the main reason is that the employee does not comprehend the provisions of SI policies as well as his/her confusion and worry about the stability of the SI policies due to changes occurring on January 01, 2018. Adding to the employee’s feeling of insecurity, several social network websites have...
Opinions Regarding Requirements on Issuing Work Permits for Expats
- 12 October 2017
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- by Hannah Huynh
On June 16, 2017, at the mid-term 2017 Vietnam Business Forum with the subject of “Strengthening the association between foreign investment and domestic investment zones in the new context of the global economy”, several issues relating to expats working in Vietnam were raised by the Human Resources Sub Working Group, specifically: Opinions regarding the required documents in the application file for work permits under the category of “intra-corporate transferee” According to Decree No.11/2016/ND-CP and Circular No.40/2016/TT-BLDTBXH,...
Issuing Social Insurance Code
- 10 October 2017
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- by Hannah Huynh
Pursuant to the process of collecting SI, HI, UI, labor accident and occupational disease insurance, and issuing the SI book and HI card (promulgated with Decision No.595/QD-BHXH of the Vietnam Social Security Code which took effect on July 01, 2017), SI and HI participants shall be issued an SI code, which is the sole personal identification number of participants. This SI code is granted and recorded in the SI book and HI card by SI authorities....
Online Issuing Work Permits to Expats
- 15 September 2017
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- by Hannah Huynh
On August 15, 2017, MOLISA issued Circular No.23/2017/TT-BLDTBXH guiding the online issuance of work permits for expats working in Vietnam (which will take effect from October 02, 2017) (“Circular 23”). According to Circular 23, the employers shall carry out the following procedures online at http://dvc.vieclamvietnam.gov.vn.: (i) obtaining the approval for the demand of employing the expats, (ii) obtaining the new/re-issued work permits and (iii) obtaining confirmation on work permits exemption. The online procedures consist of 02...
Increasing Minimum Regional Salary Rate of 2018
- 15 September 2017
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- by Hannah Huynh
On August 07, 2017, the National Wage Council agreed that the minimum regional salary of 2018 will increase by 6.5% (lower than the rate of 7.3% in 2017). Based on the recommendations of the National Wage Council, MOLISA also carried out a draft Decree providing the minimum regional salary rate of employees working under labor contracts, which is expected to take effect from January 01, 2018 (the “Draft on Minimum Regional Salary”). Accordingly, the minimum regional...
Compulsory Social Insurance for Expats
- 15 September 2017
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- by Hannah Huynh
From January 01, 2018, provisions on social insurance (the “SI”) applied to expats under the 2014 SI Law shall come into force. To guide the implementation of such provisions, MOLISA carried out a draft Decree detailing and guiding the implementation of the SI Law regarding the compulsory SI for the expats working in Vietnam (the “Draft on SI”) which is expected to come into force from January 01, 2018, i.e. at the same time the provisions...
Financial Liabilities When an Occupational Accident Occurs
- 03 August 2017
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- by Hannah Huynh
Conditions for an Accident to be Deemed an ‘Occupational Accident’ Pursuant to the provisions of the 2015 Law on Occupational Safety and Hygiene, an accident will be considered an ‘occupational accident’ if it satisfies the following 03 conditions: The victim of such accident An employee working under a labor contract; probation contract; traineeship, or apprenticeship; An official, public servant, public employee, or employee working in the People’s Armed Forces; An employee working for an employer without...
Criminal Liability to Unlawful Termination of Labor Contract
- 23 April 2017
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- by Stephen Le
On November 27, 2015, the National Assembly of Vietnam has adopted Penal Code No.100/2015/QH13 (the “2015 Penal Code”). The 2015 Penal Code is being suspended for revision by the National Assembly of Vietnam but it is expected to come into force in the near future. One of the most remarkable regulations in the 2015 Penal Code is Article 162 which provides the penal sanctions up to 03 years of imprisonment for the illegal termination of the...
Employment Termination Due to Poor Performance
- 19 February 2017
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- by Stephen Le
Article 38.1, the 2012 Labor Code provides that the employer may unilaterally terminate the labor contract with the employee if “the employee regularly fails to complete the work stated in the labor contract”. Article 12.1, Decree No.05/2015/ND-CP also does provide the guidance as follows: “The employer must specify the criteria for assessing the work completion under the regulations of company, as a basis for assessing the employee who regularly does not complete the work stated in...
