Labor & Employment

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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...

Five Years After COVID: How Work Changed and What’s Next

  • 08 April 2025
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  • by Stephen Le

Five years after COVID, work didn’t go back to 2019—it moved forward. The workplace is now more flexible, skills-driven, and AI-powered than ever. Career security is no longer tied to employers, and workers expect autonomy, adaptability, and purpose. A recent Forbes article by Nirit Cohen breaks down what changed, what stayed, and what’s still evolving. Is your organization keeping up?  Read the full breakdown here:

What Is Considered a Labor Violation in the Workplace?

  • 02 April 2025
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  • by Hannah Huynh

In Vietnam, labor violations are more than just HR missteps; they can lead to administrative fines, lawsuits, or even criminal exposure. As enforcement of labor laws becomes increasingly rigorous, both domestic and foreign employers must understand what constitutes a violation and how to remain compliant. Many labor disputes arise not from intentional wrongdoing but from gaps in understanding complex and evolving regulations. This article outlines the most common labor violations under Vietnamese law, their consequences, and...

Avoid Costly Mistakes in Labor Leasing

  • 26 March 2025
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  • by Hannah Huynh

What happens when a company hires leased workers from an unlicensed provider? What are the most common compliance failures? How can businesses avoid costly penalties? In this article, Hannah Huynh dives into: • Illustrative scenarios of compliance failures • Best practices for legally sound labor leasing • Proven strategies to avoid fines and disputes If your company relies on leased workers, this is a must-read.

Dear Leaders, Our Younger Workers Are Disengaging

  • 21 March 2025
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  • by Stephen Le

Quiet quitting isn’t the real problem—disengagement is. New Gallup research shows younger workers are feeling disconnected like never before. They’re looking for: Purpose – Work that matters Growth – Opportunities to develop Connection – A workplace that cares Ignoring this shift isn’t an option. How is your organization rethinking engagement? Let’s discuss. 

Severance Allowance Rules in Vietnam Explained

  • 18 March 2025
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  • by Hannah Huynh

Terminating an employee is more than just an administrative decision; it carries legal and financial consequences for businesses in Vietnam. Employers must not only ensure compliance with strict labor laws but also navigate the complexities of severance allowance to avoid disputes and potential penalties. Misunderstanding severance pay, including who qualifies, how it is calculated, and when it applies, can lead to unexpected costs for employers and frustration for employees who believe they are entitled to compensation....

Understanding Labor Leasing Regulations in Vietnam (Summarized Version)

  • 10 March 2025
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  • by Stephen Le

Labor leasing has become a go-to solution for businesses needing flexible, short-term staffing, but strict regulations govern this practice. Many companies unknowingly violate labor laws, leading to fines, license suspensions, and operational risks. In this article, Hannah Huynh explores:  The legal conditions for labor leasing enterprises  The rights and obligations of all parties involved  The severe penalties for non-compliance If your business leases workers or hires leased labor, make sure you’re on the right side of...

Retrenchment in Vietnam – Avoiding Costly Mistake

  • 05 February 2025
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  • by Stephen Le

Labour restructuring is one of the most complex legal processes in Vietnam. In this post, we’ll break down the most common pitfalls and how to overcome them. Mistake 1: Proving Organisational Changes Without clear definitions in the law, companies must prepare robust evidence to justify retrenchment, including: Financial reports showing reduced operations. Declining production or exports. Changes to employee headcounts. Case Study: Proving Necessity In a court case, Company N proved it reduced operations by submitting:...

Retrenchment In Vietnam – Navigating The Legal Maze

  • 04 February 2025
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  • by Stephen Le

Retrenchment in Vietnam: Are You Prepared? Labour restructuring is becoming more common, but navigating Vietnam’s strict retrenchment laws is no easy task. From proving organisational changes to consulting with trade unions and notifying authorities, even minor missteps can result in lawsuits, invalid processes, and costly penalties. In this post, Lê Hoàng Chương (Stephen), Hannah Huynh, and Tee Le break down the key challenges and common mistakes that employers face during retrenchment. Understanding these risks is the first step...

Fixed-Term vs. Indefinite-Term Labor Contracts: Key Differences in Vietnam

  • 16 January 2025
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  • by Stephen Le

Employers in Vietnam often face challenges when deciding the type of labor contract to use, as the wrong choice can lead to compliance issues, disputes, or unintended commitments. Misunderstanding the legal distinctions between fixed-term and indefinite-term contracts can result in penalties or automatic contract conversions that affect business operations and employee rights. Two primary types of labor contracts dominate the employment landscape: fixed-term and indefinite-term contracts. Choosing the appropriate type of contract is crucial, as it...

Understanding Non-Compete Agreements Under Vietnamese Labor Law

  • 02 January 2025
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  • by Hannah Huynh

For employers in Vietnam, the risk of losing valuable trade secrets or client relationships when employees leave is a growing concern. Non-compete agreements can serve as a critical safeguard against these risks, helping businesses protect their competitive edge in a dynamic marketplace. However, the enforceability of such agreements under Vietnamese labor law is complex and requires careful navigation. This article delves into the intricacies of non-compete agreements, their legal underpinnings, and actionable strategies for businesses to...

Labor vs Service Contracts In Vietnam

  • 23 December 2024
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  • by Stephen Le

Navigating labor disputes in Vietnam requires more than just legal knowledge—it demands precision and foresight. From conciliation councils to arbitration trends, understanding the evolving landscape is critical for protecting your business and workforce. In our latest insights, Lê Hoàng Chương (Stephen), Hannah Huynh, and Tee Le break down the complexities of labor dispute resolution in Vietnam, offering practical strategies to minimize risks and ensure compliance.