Labor & Employment
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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.
Social Insurance Obligations for Employers in Vietnam
- 19 December 2024
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- by Stephen Le
Vietnam’s social insurance system serves as a cornerstone of employee welfare, ensuring financial security and equitable support during life’s critical moments. For employers, navigating these responsibilities is not merely about adhering to legal mandates but also about fostering a compliant and harmonious workplace. In this article, we dive into the intricacies of social insurance responsibilities in Vietnam, providing insights into contribution requirements and strategic approaches to compliance. What is Social Insurance in Vietnam? Social insurance is...
Resolve Labor Disputes Effectively In Vietnam
- 06 December 2024
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- by Stephen Le
Labor disputes in Vietnam are evolving rapidly, with challenges ranging from conciliation procedures to emerging arbitration frameworks. For employers, navigating these complexities requires precision and a deep understanding of the law. In our latest piece, Lê Hoàng Chương (Stephen), Hannah Huynh, and Tee Le unpack the intricacies of dispute resolution in Vietnam, offering practical strategies to ensure compliance and protect your organization from unnecessary risks.
Employment Disputes In Vietnam: Avoid Costly Pitfalls With Expert Insights
- 29 November 2024
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- by Stephen Le
Labor disputes in Vietnam are becoming increasingly complex. Wrongful dismissal, discrimination claims, and virtual hearings all demand careful navigation. How can employers avoid costly pitfalls while fostering a compliant and equitable workplace? Our latest guide put together by Lê Hoàng Chương (Stephen), Hannah Huynh, and Tee Le explores practical insights and proven strategies to help you stay ahead in a rapidly evolving landscape.
The Employer’s Guide To Termination: Vietnam’s Pro-Employee Laws
- 25 November 2024
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- by Stephen Le
Navigating employee termination in Vietnam requires careful planning and strict compliance with labor laws. From retrenchment to dismissal for cause, the process is complex and highly regulated. In this guide, Lê Hoàng Chương (Stephen), Hannah Huynh, and Tee Le break down the legal framework, helping you manage terminations effectively while fostering fairness and compliance.
How Employment Conflicts Influence Corporate Culture and Identity
- 14 November 2024
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- by Stephen Le
Workplace disputes are part of almost every organization’s journey. Whether they stem from misunderstandings over responsibilities, more serious issues like harassment, or other disagreements, conflicts can quickly spread from a few individuals to the entire organization. The way a company handles these conflicts significantly affects not only the immediate team but also corporate culture and the company’s broader identity. While challenging, these disputes often reveal the real values of an organization. A company’s approach to conflict...
