After company establishment in Vietnam, employment-related matters are the most important issues about which foreign investors are concerned. Because labor is a pivotal factor deciding on sustainability and development of a company.
However, Vietnam is a country where employees are more protected by the labor laws than employers. Thus, when foreign investors want to recruit, enter into, terminate labor contracts, or fire employees, they must strictly comply with the complicated provisions of law. Understanding such concerns, ALB & Partners Law Firm is ready to assist investors with some kind of services in a quick and cost-effective manner.
I. Drafting and registering internal labor regulation
Internal labor regulation has been known as internal laws of each enterprise. Employers employing from ten (10) or more employees must have an internal labor regulation in writing.
The contents of the internal labor regulation must not be contrary to the laws on labor and other regulations of the relevant law, which includes the following essential contents: Working hours and rest time; Order at the workplace; Labor safety and hygiene at the workplace; Protection of assets and business and technology secrets and intellectual property of the employer; Acts of violation of the internal labor regulation of the employee and the forms of labor discipline and material responsibility.
1. Registration of internal labor regulation
Within 10 days from the date of promulgation of the internal labor regulation, the employer must submit a dossier for registration of the internal labor regulation at the Department of Labor, War Invalids and Social Affairs. It shall take effect after 15 days upon receipt of valid documents.
2. Dossier for registration of the internal labor regulation includes:
- A written request for registration of the internal labor regulation;
- Documents relating to the labor discipline and material responsibilities;
- A minutes of opinions of the representative organization of the labor collective at the grassroots level;
- An internal labor regulation.
II. Advising procedures for recruiting foreign employees to work in Vietnam
Companies are only entitled to recruit foreign citizen to work as manager, operating director, specialist and technical employees while Vietnamese employee can not meet the production and business demands.
Before recruiting foreign employees to work in the territory of Vietnam, the companies must explain the demand for foreign labor employment which must be approved in writing by the relevant government authority.
Applying for work permit for foreign employees to work in Vietnam
Foreign employees must have a work permit to work in Vietnam. Without work permits, they will be expelled out of Vietnam. The duration of the work permit is 02 years maximally.
For more information, please access our website: https://alb-partners.com/work-permit-work-permit-exemption-foreigners-vietnam
III. Advising regulations on labor contract and its termination
A labor contract is an agreement between employees and employers on paid jobs, work conditions, rights and obligations of each party in the labor relation.
Before recruiting, employers and employees must directly enter into the labor contract.
1. Form of labor contracts
Basically, the Labor Code 2019 allows a labor contract to be entered into in two forms, which is in writing and by electronic form, the legal validity which is the same.
Specifically, Clause 1, Article 14 of the Labor Code 2019 stipulates that a labor contract must be entered into in writing and made in 02 copies, the employee keeps 01 copy, the employer keeps 01 copy. In addition, a labor contract could be entered into by electronic form via data messages according to the provisions of the law on electronic transactions with the same value as a written labor contract.
However, the two parties shall enter into a verbal labor contract for a term of less than 1 month, except for the cases specified in Clause 2, Article 18 and Point a, Clause 1, Article 145 and Clause 1, Article 162 of the Labor Code 2019.
2. Contents of a labor contract:
According to Clause 1, Article 21 of the Labor Code 2019, a labor contract must have the following main points:
- Name, address, representative’s full name and title of the employer;
- Full name, date of birth, gender, place of residence, number of citizen identification card/ identity card/passport of employee;
- Job description and work location;
- Term of labor contract;
- Salary according to job or title, salary payment method, salary payment term, salary allowance and other additional payments;
- Regimes for raising grade of salary and raising salary;
- Working hours and rest periods;
- Personal protective equipment for employee;
- Social insurance, health insurance and unemployment insurance;
- Basic training and advanced training, occupational skill development.
Some cases of labor contract termination such as the labor contract expires; the work under the labor contract is done; Both parties agree to terminate the labor contract; The employees or employers unilaterally terminate the labor contract, etc.
IV. Advising procedure for labor discipline; mediation and settlement in labor disputes
Form of labor discipline including reprimand; prolongation of wage increase within 06 months; dismissal from work station.
When taking part in meetings of labor discipline, the employer must prove the employee’s fault; There must be the participation of the representative organization of the labor collective at the grassroots level; The employee must be present and has the right to defend himself, request a lawyer or someone to defend; The labor discipline must be made in writing.
Mediation procedures for labor dispute
The personal labor dispute must be through the mediation procedures before requiring the Court to settle except for some cases without having to go through the mediation procedures.
In case of unsuccessful mediation or either party does not perform the agreements in the record of successful mediation or the time limit for settlement is over but the labor mediator does not conduct the mediation, each disputing party has the right to request the settlement at a relevant Court.
For further information on how we can help clients in labor cases, feel free to contact ALB & Partners, a professional law firm in Vietnam. With a team of experienced lawyers, we are pleased to assist Clients in any legal issues related to labor laws in Vietnam. Kindly send us your requests via our email address: [email protected]