Labor & Employment

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Labor Contract Terms for Directors under Enterprise and Labor Law

  • 07 December 2021
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  • by Hannah Huynh

Currently under the 2020 Enterprise Law, the terms of office for Directors/General Directors shall not exceed a maximum of 05 years. Concurrently, the 2019 Labor Code provides for 2 types of labor contracts, being a definite-term labor contract with a maximum term of up to 36 months and an indefinite-term labor contract. Needless to say, these provisions cause confusion for enterprises when they enter into labor contracts with employees holding Director/General Director titles. This article summaries...

Reducing Salary Allowances and Bonuses for Disciplined Employees – Is It Allowable?

  • 06 December 2021
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  • by Stephen Le

Aside from the disciplinary measures prescribed in the 2019 Labor Code, some companies would like to have more practical measures to apply to disciplined employees. After exchanging with many companies, money is clearly the most practical measure that companies wish to include. Thus, whether it is lawful to reduce a certain amount of money from the employee is of great concern to companies. Reduction of Salary Allowances Depending on the nature of the job, position, title...

Vietnam Facilitates Work Permit Process for Foreign Workers

  • 18 October 2021
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  • by Hannah Huynh

  Resolution 105 Amendments Definition of “work experience” Recently issued Resolution No. 105/NQ-CP (Resolution 105), which applies to enterprises, cooperatives, and business households, has altered the definition of “work experience” required for foreign workers, making it easier to obtain work permits.  The Resolution was ratified by the Prime Minister and issued on September 9th, 2021.  One of the purposes of Resolution 105 is to ease some of the stricter hiring requirements, instituted by Decree No 152/2020/ND-CP...

Higher Democratic Standards in the Workplace under Labour Code 2019

  • 13 September 2021
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  • by Corporate Counsels Team

The Labour Code 2019 in Vietnam took effect on January 01, 2021.  One of the stated purposes of the new Labour Code was to meet the commitments of Vietnam concerning labour standards in recent new-generation free trade agreements, including the EU-Vietnam Free Trade Agreement and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.  As a result, the Labour Code 2019 and its implementing provisions provide higher standards of democracy compared to the Vietnamese labour regulations prior...

Enforcing a Non-compete Agreement for Employment Contracts in Vietnam

  • 13 September 2021
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  • by Stephen Le

In today’s business environment, foreign companies operating in Vietnam often include a non-competition provision or agreement in their labor contracts with their employees. However, as this type of provision is somewhat rare in Vietnam as well as being unfamiliar to Vietnamese administrative agencies and Courts, there is little knowledge available of the effects and implications of such a provision. Therefore, in this Insight, we would like to share with you our knowledge and experience with regard...

Ho Chi Minh City Plans for the ‘New Normal’ after September 15, 2021

  • 12 September 2021
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  • by Corporate Counsels Team

Up to October 9, 2021, Vietnam has approved the Hayat-Vax vaccine for emergency use, besides AstraZeneca, Sputnik V (Gam-Covid-Vac), Vero Cell (Sinopharm), Pfizer/BioNTech (Comirnaty), Moderna (Spikevax), and Janssen. At the moment, the Government is still facilitating the vaccination campaigns for people to get the first Covid-19 vaccine shot and continue the second shot in time. With the severe impact of the fourth Covid-19 wave, the People’s Committee of Ho Chi Minh City applied the lockdown regulation...

Evidence in Labor Dispute Cases

  • 17 August 2021
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  • by Hannah Huynh

In general, a party who files a labor claim is obligated to submit evidence to prove their case. When litigating in this area, parties should be aware of that there are a number of evidentiary rules which are particular to labor disputes. The following is a discussion of various notable decisions in labor litigation concerning the collection and submission of evidence, which have an effect on the admissibility of evidence in a court of law. Documentation...

Allowable Methods of Employment Termination

  • 17 August 2021
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  • by Trang Le

Vietnamese labor legislation is generally considered to be ‘pro-employee’. As such, it is imperative that companies prepare and devise a termination plan in compliance with the laws to avoid any potential disputes at Court. This plan should be prepared and standardized prior to the termination of the employment relationship. This executive brief is to provide corporate leaders with an overview of the acceptable methods of employment termination to assist in finding optimal solutions that match the...

Recent Updates Regarding Foreign Workers In Vietnam

  • 02 March 2021
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  • by Hannah Huynh

Noteworthy Legal Issues regarding Expats Working in Vietnam, including work permits, labor contracts, temporary residence, etc.

Unilateral Termination of Labor Contracts Due to the Covid-19 Outbreak

  • 25 January 2021
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  • by Stephen Le

The Corona virus (Covid-19) has caused widespread damage to the global economy. Vietnam is no exception. As enterprises are facing numerous difficulties that are directly attributable to Covid-19. According to information from the Business Registration Management Office, the number of enterprises that temporarily suspended operations increased in 2020 & 2021. In addition, there were many other enterprises that did not formally announce a suspension of business but, in practice, stopped their production and operations and allowed...

Employee Service Contract vs. Labor Contract

  • 30 July 2020
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  • by Stephen Le

Should Company’s Sign Service Contracts with an Individual… If so, under What Conditions? To avoid the obligations of social insurance, health insurance, and unemployment insurance towards their employees and, avoid being subject to liability as provided by the labor law, many companies propose that their employees sign contracts to provide services instead of labor contracts. Is the signing of a service contract between a company and an employee (an individual) lawful under Vietnam law? As will...

Highlights of the 2019 Labor Code

  • 03 March 2020
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  • by Hannah Huynh

From the effective date of the 2019 Labor Code (i.e. January 01, 2021), any contents of signed labor contracts, collective labor agreements and other legal agreements which are not contrary to regulations of, or grant the employee benefits more favorable than the ones provided by, the 2019 Labor Code remain in full force and effect, unless otherwise agreed to by the parties concerning any amendment to comply with and implement the 2019 Labor Code. New terminology...